Discussion
of Issues
Issue 1:
Should the Commission propose the amendment of Rule
25-6.0183, F.A.C., Electric Utility Procedures for Generating Capacity Shortage
Emergencies?
Recommendation:
Yes. The Commission should propose the amendment of
Rule 25-6.0183, F.A.C., as set forth in Attachment A. The Commission should
also certify that Rule 25-6.0183, F.A.C., is a rule the violation of which
would be a minor rule violation pursuant to Section 120.695, F.S. (Rubottom,
Brown, Guffey)
Staff Analysis:
The FRCC is a Florida not-for-profit company whose
mission is to coordinate a safe, reliable, and secure bulk power system in the
areas of Florida served by its members. The
FRCC’s members include investor-owned, municipal, and cooperative electric
utilities, as well as entities representing wholesale, generation, and load
serving electric utility sectors. The
FRCC serves as a registered Reliability Coordinator and Planning Authority for
the North American Electric Reliability Corporation (NERC) within the service
area of FRCC’s members.
Prior to 2019, the FRCC also served as the regional entity with delegated
authority from NERC for the purpose of proposing and enforcing reliability
standards within the FRCC region; however, the FRCC transferred those functions
in 2019 to the SERC Reliability Corporation.
The FRCC Plan, appended to this recommendation in
Attachment A, is designed to document guidelines and summarize procedures to be
used by governmental agencies and electric utilities within the FRCC
Reliability Coordinator Area in response to generating capacity shortages which
impact or threaten to impact significant numbers of customers. In particular,
the FRCC Plan addresses the procedures of balancing authorities, generator
operators, and transmission operators during a generating capacity shortage to
ensure coordinated state-wide action and communication. As part of the FRCC
Plan, the Commission acts as an informational liaison to all interested
parties.
The FRCC Plan was revised effective November 1, 2023.
Staff recommends the amendment of Rule 25-6.0183, F.A.C., to adopt and incorporate
by reference the updated 2023 version of the FRCC Plan. The adoption of the
most recent version of the FRCC Plan is the only substantive amendment to the
rule, and other amendments are designed to provide clarity and consistency.
The November 1, 2023, FRCC Plan
revises the Florida Transaction Management System (FTMS) definition as well as
references to EOP-011-2, which addresses Emergency Preparedness and Operations.
These changes affect Sections 6 and 8 of the plan. The 2023 plan also includes other
revisions made to the plan since this rule was last updated by the Commission
in May 2017, including to correct grammatical errors or inconsistencies,
clarify responsibilities, and incorporate new or revised FRCC definitions.
Minor Violation Rules Certification
Pursuant to Section 120.695, F.S., for each rule filed for
adoption, the agency head shall certify whether any part of the rule is
designated as a rule the violation of which would be a minor violation. Rule
25-6.0183, F.A.C., is on the Commission’s minor violation rule list because
violation of the rule would not result in economic or physical harm to a person
or adverse effects on the public health, safety, or welfare and would not
create a significant threat of such harm. The proposed amendments to the rule
would not alter the likelihood or risk of such harms in the event of a
violation. Thus, if the Commission proposes the amendment, staff recommends
that the Commission certify that Rule 25-6.0183, F.A.C., is a rule the
violation of which would be a minor violation pursuant to Section 120.695, F.S.
Statement of Estimated Regulatory Costs
Pursuant to Section 120.54, F.S., agencies are encouraged
to prepare a statement of estimated regulatory costs (SERC) before the
adoption, amendment, or repeal of any rule.[5]
Agencies are required to prepare a SERC for any rule that will have an adverse
impact on small business or that is likely to directly or indirectly increase
regulatory costs in excess of $200,000 in the aggregate within one year after
implementation.[6] The SERC
analysis includes whether the rule will, within five years of implementation,
have an adverse impact in excess of $1 million in the aggregate on economic
factors such as economic growth, private sector job creation or employment,
private sector investments, or business competitiveness, productivity, or
innovation.[7] If
expected adverse impacts or regulatory costs exceed any of the above criteria,
a proposed rule may not take effect until it is ratified by the Legislature.[8]
A SERC was prepared and is appended hereto as Attachment
B. The SERC concludes that the rule will not have an adverse impact on small
business and that the rule is not likely to directly or indirectly increase
regulatory costs in excess of $200,000 in the aggregate within one year after
implementation. Further, the SERC concludes that the rule will not likely have
an adverse impact on economic growth, private sector job creation or
employment, private sector investment, or business competitiveness,
productivity, or innovation in excess of $1 million in the aggregate within
five years of implementation. None of the adverse impact or regulatory cost
criteria set forth in Section 120.541(2)(a), F.S., will be exceeded as a result
of the recommended amendments to the rule. Thus, the rule does not require
legislative ratification pursuant to Section 120.541(3), F.S. In addition, the
SERC states that the rule will have no impact on small cities or counties and
will not increase the cost to the Commission to implement and enforce the rule.
No regulatory alternatives have been submitted pursuant to Section
120.541(1)(a), F.S.
Conclusion
Based on the foregoing, staff recommends the Commission
propose the amendment of Rule 25-6.0183, F.A.C., as set forth in Attachment A.
In addition, staff recommends that the Commission certify that Rule 25-6.0183,
F.A.C., is a rule the violation of which would be a minor violation pursuant to
Section 120.695, F.S.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If no requests for hearing or JAPC comments are
filed, and no proposal for a lower cost regulatory alternative is submitted,
the rule may be filed with the Department of State for adoption, and the docket
should be closed.
Staff Analysis:
If no requests for hearing or JAPC comments are
filed, and no proposal for a lower cost regulatory alternative is submitted
pursuant to Section 120.541(1)(a), F.S., the rule may be filed with the
Department of State for adoption, and the docket should be closed.
25-6.0183 Electric Utility Procedures for Generating Capacity Shortage
Emergencies.
The Commission adopts the FRCC Generating
Capacity Shortage Plan, FRCC-MS-OPRC-015, Effective Date: November 1, 2023
December 15, 2016, Version: 18 8, which is adopted and
hereby incorporated by reference into this rule and may be accessed at [new
hyperlink] http://www.flrules.org/Gateway/reference.asp?No=Ref-08155,
or by contacting the Commission’s Division of Engineering, Florida Public
Service Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida
32399-0850, as the Commission’s plan to address generating capacity
shortage emergencies within Florida.
Rulemaking
Authority 350.127(2), 366.05 FS. Law Implemented 366.04(2)(c), (f), (5) FS.
History–New 2-12-91, Amended 3-19-98, 4-27-03, 5-1-08, 5-9-17, .
