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State of Florida
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Public Service Commission
Capital Circle Office Center ● 2540 Shumard
Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
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DATE:
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August 20, 2020
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TO:
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Office of Commission Clerk (Teitzman)
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FROM:
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Office of the General Counsel (Cowdery)
Division of Economics
(Coston, Draper, Guffey)
Division of Engineering
(Buys)
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RE:
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Docket No. 20200186-EU – Proposed repeal of
Rule 25-6.047, FAC, Constant Current Standards; Rule 25-6.081, FAC,
Construction Practices; and Rule 25-6.082, FAC, Records and Reports, and
amendment of Rule 25-6.054, FAC, Laboratory Standards; Rule 25-6.074, FAC,
Applicability; and Rule 25-6.104, FAC, Unauthorized Use of Energy.
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AGENDA:
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09/01/20 – Regular Agenda – Rule Proposal - Interested Persons May
Participate
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COMMISSIONERS ASSIGNED:
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All Commissioners
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PREHEARING OFFICER:
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Polmann
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CRITICAL DATES:
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Proposal May Be Deferred
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SPECIAL INSTRUCTIONS:
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None
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Case Background
By
letter of March 12, 2019, staff of the Joint Administrative Procedures
Committee (JAPC) requested that we review sixteen of our rules from Chapter
25-6, Florida Administrative Code (F.A.C.), Electric Service by Electric Public
Utilities, to determine if any of the older rules needed to be updated, whether
technical changes were needed, or whether the rules needed to be amended for
clarity to ensure comprehension and compliance. Staff determined as a result of
its review that three of the rules should be recommended for repeal as obsolete
and that three of the rules should be amended. The three rules recommended for
repeal are Rules 25-6.047, F.A.C., Constant Current Standards; 25-6.081, F.A.C.,
Construction Practices; and 25-6.082, F.A.C., Records and Reports. The three rules recommended for amendment are
Rules 25-6.054, F.A.C., Laboratory
Standards; 25-6.074, F.A.C., Applicability; and 25-6.104, F.A.C., Unauthorized
Use of Energy.
A Notice of Rule
Development for Rules 25-6.047, 25-6.082, 25-6.054, 25-6.074, and 25-6.104,
F.A.C., appeared in the February 7, 2020 edition of the Florida Administrative
Register (F.A.R.). There was no request for a rule development workshop, and a
workshop was not held. Combined written comments were provided on Rule
25-6.104, F.A.C., Unauthorized Use of Energy, by Florida Power & Light
Company, Tampa Electric Company, Duke Energy Florida, Inc., Gulf Power Company,
and Florida Public Utilities Company.
A Notice of Rule
Development for Rule 25-6.081, F.A.C., appeared in the June 7, 2019 edition of
the F.A.R., along with twelve other rules that staff had determined might be
affected by the adoption of Rules 25-6.030, F.A.C., Storm Protection Plan and
25-6.031, F.A.C., Storm Protection Cost Recovery Clause. Staff rule development workshops were held
on all these rules on June 25, 2019, and on August 20, 2019. No comments were
provided at the workshops or in post-workshop comments on Rule 25-6.081,
F.A.C., and staff determined that Rule 25-6.081, F.A.C., did not need to be
amended as a result of the new storm protection plan and cost recovery clause
rules. However, JAPC’s March 12, 2019 comments raised concerns about Rule
25-6.081, F.A.C., so it was added to this docket.
This
recommendation addresses whether the Commission should propose the repeal of
Rules 25-6.047, 25-6.081, and 25-6.082, F.A.C., and the amendment of Rules
25-6.054, 25-6.074, and 25-6.104, F.A.C. The Commission has jurisdiction
pursuant to Sections 350.127(2), 366.03, 366.04(2)(a),(c), (f) and (5),
366.05(1) and (3), and 120.54, Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission propose the repeal of Rules
25-6.047, F.A.C., Constant Current Standards; 25-6.081, F.A.C., Construction
Practices; and 25-6.082, F.A.C., Records and Reports, and the amendment of
Rules 25-6.054, F.A.C., Laboratory Standards; 25-6.074 F.A.C., Applicability;
and 25-6.104, F.A.C., Unauthorized Use of Energy?
Recommendation:
Yes, the Commission should
propose the repeal of Rules 25-6.047, 25-6.081, and 25-6.082, F.A.C., and the
amendment of Rules 25-6.054, 25-6.074, and 25-6.104, F.A.C., as set forth in
Attachment A. The Commission should also
certify Rules 25-6.054, 25-6.074, and 25-6.104, F.A.C., as minor violation
rules. (Cowdery, P. Buys, Draper,
Coston, Guffey)
Staff Analysis:
The purpose of this
rulemaking is to repeal or update and clarify these Chapter 25-6, F.A.C., rules
in response to concerns or questions raised by JAPC staff. Staff determined
that three of the rules should be repealed as obsolete and unnecessary and that
three of the rules should be amended. Staff’s recommendation for each rule is
discussed below.
Rule 25-6.047, F.A.C., Constant Current
Standards
JAPC staff asked that the
Commission review and advise whether updates are needed to Rule 25-6.047, F.A.C.,
which has not been amended since adoption in 1969. This rule addresses
equipment supplying constant current street lighting circuits. The rule has
become obsolete and unnecessary because electric utilities no longer utilize this
type of equipment. For this reason, staff recommends that the Commission should
repeal Rule 25-6.047, F.A.C.
Rule 25-6.054, F.A.C., Laboratory Standards
The Laboratory Standards rule
establishes reference standards for certain watthour meters. Section (4) of the rule requires each utility
to maintain historical performance records for each watthour meter used as a
basic reference standard for certain types of comparisons. This rule was last
amended in 1997. JAPC staff raised a concern that the rule text did not
identify a specific period of time that the historical performance records must
be maintained by utilities. In order to
address this concern, staff recommends that the Commission amend section (4) to
state that the referenced historical performance records be maintained until
the meter is no longer in use.
Rule 25-6.074, F.A.C., Applicability
Rules 25-6.074 through 25-6.082,
F.A.C., are the Commission’s rules for residential electric underground
extensions. The substance of Rule 25-6.074, F.A.C., requires that extensions of
electric distribution lines necessary to furnish permanent electric service to
certain new structures must be made underground when required by an applicant
or required by a governmental authority.
This rule has not been amended since it was adopted in 1971.
JAPC staff asked that it be
advised as to the necessity of Rule 25-6.074, F.A.C., in light of the
definition of a rule pursuant to section 120.52(16), F.S. In order to address this concern, staff
recommends that the Commission delete certain provisions as obsolete and
unnecessary. Staff recommends that the Commission delete as obsolete the
language in Subsection (1) stating that the rule applies to extensions applied
for after the 1971 effective date of the rule. Additionally, staff recommends
that the Commission should delete Subsection (2) that provides that extensions
must be made in accordance with the rules for residential electric underground
extensions. Section (2) is unnecessary because other rules addressing
residential electric underground extensions by their terms apply to the
extensions identified in Rule 25-6.074, F.A.C.
Rule 25-6.081, F.A.C., Construction Practices
Rule 25-6.081, F.A.C. is another of the rules for
residential electric underground extensions. JAPC staff raised the concern that
Rule 25-6.081, F.A.C., which has not been amended since it was adopted in 1971,
does not meet the Section 120.52(16), F.S., definition of “rule” and appears to
contain undefined goals without definitions, standards, or how compliance is to
be determined.
Subsections (1) and (2) of the
Construction Practices rule are meant to encourage utilities to keep the cost
of underground construction as low as possible. Subsection (3) encourages joint
use of trenches by utilities “to the extent practicable” “where economies can
be realized without impairment to safety or service” with “care being taken to
conform to any applicable Code and utility specification,” and Subsection (4)
encourages replacement of retired aerial facilities with underground
construction “to the extent practicable” and “whenever economically feasible.”
Staff agrees with the concern
raised by JAPC staff. Rule 25-6.081, F.A.C., contains what staff would
characterize as aspirational goals. As pointed out by JAPC staff, the
provisions of Rule 25-6.081, F.A.C., do not meet the current requirements of
Chapter 120, F.S., because they do not impose specific standards for meeting
the goals or determining compliance with the rule.
Staff does not believe that Rule 25-6.081,
F.A.C., can be amended to impose specific standards for meeting the identified
goals. There are more specific rules concerning residential electric
underground extensions that impose standards or requirements. As explained
above, Rule 25-6.074, F.A.C., requires that extensions of electric distribution
lines necessary to furnish permanent electric service to certain new structures
must be made underground when required by an applicant or required by a governmental
authority. Rule 25-6.076, F.A.C., addresses rights of way and easements, and
Rule 25-6.077, F.A.C., addresses installation of underground distribution
systems within new subdivisions. For the reasons explained above, staff recommends
that Rule 25-6.081, F.A.C., should be repealed as obsolete and unnecessary.
Rule 25-6.082, F.A.C., Records and Reports
Rule 25-6.082, F.A.C., also
addresses residential electric underground extensions. The Records and Reports
rule contains certain recordkeeping requirements for underground distribution
construction, operation and maintenance costs, and the use of joint
trenching. This rule was last amended in
1997.
JAPC raised the concern that this
rule did not specify how long these records must be maintained and asked
whether another relevant record retention rule applied. Staff believes that
Rule 25-6.078, F.A.C., Schedule of Charges, supersedes Rule 25-6.082,
F.A.C. The data required by Rule 25-6.082,
F.A.C., is provided to the Commission pursuant to Rule 25-6.078, F.A.C. For this reason, staff recommends that Rule
25-6.082, F.A.C., be repealed as obsolete and unnecessary.
Rule 25-6.104, Unauthorized Use of Energy,
F.A.C.
The Unauthorized Use of Energy rule
states that in the event of unauthorized or fraudulent use or meter tampering,
the utility may bill the customer on a reasonable estimate of the energy
used. This rule was last amended in
1982. JAPC stated that it is unclear how the Commission would determine whether
an estimated charge is “reasonable.”
In order to address this concern,
and based on input from the investor-owned utilities in their written comments,
staff is recommending that the Commission amend the unauthorized use of energy
rule to allow the utility to bill the customer for the time period at issue
using an estimate of the energy used, which may include factors such as
historical usage, meter data, meter test data, approximate size of the
residence or building, the types of appliances and equipment using electricity,
use of air conditioning and electric heating, and the number of occupants. This
language gives specificity and clarity to the rule and identifies factors currently
used by utilities in determining estimates under this rule.
Minor Violation Rules Certification
Pursuant to Section 120.695, F.S., the agency head must
certify for each rule filed for adoption whether any part of the rule is
designated as a rule the violation of which would be a minor violation. Rules 25-6.047,
25-6.054, 25-6.074, 25-6.081, 25-6.082, and 25-6.104, F.A.C., are currently
listed on the Commission’s website as rules for which a violation would be
minor because violation of the rules would not result in economic or physical
harm to a person or have an adverse effect on the public health, safety, or
welfare or create a significant threat of such harm.
If Rules 25-6.047, 25-6.081, and 25-6.082, F.A.C., are
repealed as recommended by staff, these rules will be deleted from the
Commission’s website listing of minor violation rules after the repeals are
certified by the Department of State. The amendments to Rules 25-6.054,
25-6.074, and 25-6.104, F.A.C., would not change their status as minor
violation rules. Thus, staff recommends that the Commission certify Rules
25-6.054, 25-6.074, and 25-6.104, F.A.C., as minor violation rules.
Statement of Estimated Regulatory Costs
Pursuant to Section 120.54(3)(b), F.S., agencies are
encouraged to prepare a statement of estimated regulatory costs (SERC) before
the adoption, amendment, or repeal of any rule. The SERC is appended as
Attachment B to this recommendation.
The SERC concludes that the rules will not likely directly
or indirectly increase regulatory costs in excess of $200,000 in the aggregate
in Florida within one year after implementation. Further, the SERC economic analysis concludes
that the rules will not likely have an adverse impact on economic growth,
private sector job creation or employment, private sector investment, business
competitiveness, productivity, or innovation in excess of $1 million in the
aggregate within five years of implementation. Thus, the rules do not require
legislative ratification pursuant to Section 120.541(3), F.S. In addition, the
SERC states that the rules will not have an adverse impact on small business
and will have no impact on small cities or counties. No regulatory alternatives
were submitted pursuant to paragraph 120.541(1)(a), F.S. None of the
impact/cost criteria established in paragraph 120.541(2)(a), F.S., will be
exceeded as a result of the recommended amendments to Rules 25-6.0440 and
25-6.0441, F.A.C.
Conclusion
Staff recommends that the
Commission propose the repeal of Rules 25-6.047, 25-6.081, and 25-6.082,
F.A.C., and the amendment of Rules 25-6.054, 25-6.074, and 25-6.104, F.A.C., as
set forth in Attachment A. The
Commission should also certify Rules 25-6.054, 25-6.074, and 25-6.104, F.A.C.,
as minor violation rules.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If no requests for hearing, information
regarding the SERC, proposals for a lower cost regulatory alternative, or JAPC
comments are filed, the rules should be filed with the Department of State, and
the docket should be closed. (Cowdery)
Staff Analysis:
If no requests for hearing, information regarding
the SERC, proposals for a lower cost regulatory alternative, or JAPC comments
are filed, the rules should be filed with the Department of State, and the
docket should be closed.
25-6.054 Laboratory Standards.
(1)
Each utility shall have available one or more watthour meters to be used as
basic reference standards. The watthour meters must have an adequate capacity
and voltage range to test all portable standards used by the utility and must
meet the requirements described in subsection 25-6.055(1), F.A.C.
(a)
Watthour meters used as basic reference standards shall not be in error by more
than plus or minus 0.05 percent at 1.00 power factor or by more than 0.10
percent at 0.50 power factor. Watthour meters shall not be used to check or
calibrate portable standard watthour meters unless the basic reference standard
watthour meter has been checked and adjusted, if necessary, to the prescribed
accuracy within the preceding twelve months.
(b)
The percent registration of each basic reference standard watthour meter shall
be compared with the percent registration of all other basic reference standard
watthour meters used by the utility.
(2)
Each utility shall establish traceability of its watthour standard to the
national standards at least annually using one of the following methods:
(a)
Through the Measurement Assurance Program (MAP) in which the National Institute
of Standards and Technology (NIST) has provided a transport standard; or
(b)
Through a transport standard which is of the same nominal value and of quality
equal to the basic reference standards that are sent to NIST or to an
independent laboratory approved by the Commission.
(3)
If error exceeding that referenced in paragraph 25-6.054(1)(a), F.A.C., in the
percent registration of a watthour meter used as a basic reference standard is
observed in the comparisons in paragraph 25-6.054(2)(b), F.A.C., the utility
shall investigate the source of the error. If the cause of the error cannot be
corrected, use of the watthour meter as a basic reference standard shall be
discontinued.
(4)
Each utility shall maintain the following historical performance records
for each watthour meter used as a basic reference standard until the meter
is no longer in use for the following types of comparisons:
(a)
Comparisons of basic reference standards with national standards; and
(b)
Intercomparisons made with other basic reference standards.
Rulemaking
Authority 350.127(2), 366.05(1)
FS. Law Implemented 366.05(1),(3) FS. History–New 7-29-69, Amended 4-13-80,
5-13-85, Formerly 25-6.54, Amended 5-19-97, ___________.
