Senate Bill 1532 (2026) — Florida Public Service Commission
SB 1532
Florida Bills
Florida Senate - 2026 SB 1532 By Senator Smith 17-00432B-26 20261532__ Page 1 of 10 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1
An act relating to the Florida Public Service 2 Commission; amending s. 366.03, F.S.; providing 3 legislative findings; requiring the commission to 4 implement specified measures to improve transparency 5 and accountability; amending s. 366.041, F.S.; 6 requiring the commission to ensure that public 7 utilities do not recover certain costs from ratepayers 8 regardless of whether such costs take a specified 9 form; authorizing the commission to adopt rules; 10 requiring the commission, upon a certain 11 determination, to order a utility to refund certain 12 amounts plus interest to customers; authorizing the 13 commission to assess certain penalties; providing 14 requirements for such penalties; providing for relief; 15 amending s. 366.06, F.S.; requiring the commission to 16 ensure that the allowable return on equity for public 17 utilities does not exceed certain metrics; amending s. 18 366.07, F.S.; requiring that certain cost-tracking 19 mechanisms for a public utility to recover changes in 20 electric supply costs provide a specified cost-sharing 21 structure; amending s. 366.81, F.S.; providing a 22 legislative directive to the commission to adopt 23 certain rules and measures; providing requirements for 24 such rules; making technical changes; amending s. 25 377.814, F.S.; conforming a cross-reference; providing 26 an effective date. 27 28 Be It Enacted by the Legislature of the State of Florida: 29
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Section
Section 366.03, Florida Statutes, is amended to 31 read: 32 366.03 General duties of public utility; transparency and 33 accountability.— 34
(1) Each public utility shall furnish to each person 35 applying therefor reasonably sufficient, adequate, and efficient 36 service upon terms as required by the commission. A No public 37 utility is not shall be required to furnish electricity or gas 38 for resale except that a public utility may be required to 39 furnish gas for containerized resale. All rates and charges 40 made, demanded, or received by any public utility for any 41 service rendered, or to be rendered by it, and each rule and 42 regulation of such public utility, must shall be fair and 43 reasonable.
A No public utility may not shall make or give any 44 undue or unreasonable preference or advantage to any person or 45 locality, or subject the same to any undue or unreasonable 46 prejudice or disadvantage in any respect. 47
(2) The Legislature finds that transparency and 48 accountability in the form of clear reporting, accessible public 49 hearings, and strong disclosure standards bolster the public 50 trust in public utilities and ensure that decisions are made in 51 the best interest of all residents. The commission shall 52 implement measures to improve transparency and accountability by 53 providing, at a minimum, all of the following: 54 (
a) At least one in-person public service hearing per every 55 250,000 customers, held in a reasonable location near those 56 customers, or at least one in-person public service hearing held 57 in each county where the public utility provides service, if the 58
Florida Senate - 2026 SB 1532 17-00432B-26 20261532__ Page 3 of 10 CODING: Words stricken are deletions; words underlined are additions. county has fewer than 250,000 residents. 59 (
b) Public access to information regarding the compensation 60 of the executive officers of each public utility providing 61 service, or the compensation of the executive officers of a 62 public utility’s subsidiaries. 63
Section
Section 366.041, Florida Statutes, is amended to 64 read: 65 366.041 Rate fixing; adequacy of facilities as criterion; 66 cost recovery prohibitions.— 67
(1) In fixing the just, reasonable, and compensatory rates, 68 charges, fares, tolls, or rentals to be observed and charged for 69 service within this the state by any and all public utilities 70 under its jurisdiction, the commission is authorized to give 71 consideration, among other things, to the efficiency, 72 sufficiency, and adequacy of the facilities provided and the 73 services rendered; the cost of providing such service and the 74 value of such service to the public; the ability of the utility 75 to improve such service and facilities; and energy conservation 76 and the efficient use of alternative energy resources; provided 77 that a no public utility is not shall be denied a reasonable 78 rate of return upon its rate base in any order entered pursuant 79 to such proceedings.
In its consideration thereof, the 80 commission has shall have authority, and it is shall be the 81 commission’s duty, to hear service complaints, if any, that may 82 be presented by subscribers and the public during any 83 proceedings involving such rates, charges, fares, tolls, or 84 rentals; however, no service complaints may not shall be taken 85 up or considered by the commission at any proceeding proceedings 86 involving rates, charges, fares, tolls, or rentals unless the 87
Florida Senate - 2026 SB 1532 17-00432B-26 20261532__ Page 4 of 10 CODING: Words stricken are deletions; words underlined are additions. utility has been given at least 30 days’ written notice thereof, 88 and any proceeding may be extended, before prior to final 89 determination, for such period; further, an no order hereunder 90 is not shall be made effective until a reasonable time has been 91 given for the utility involved to correct the cause of service 92 complaints, considering the factor of growth in the community 93 and availability of necessary equipment. 94
(2) The power and authority herein conferred upon the 95 commission does shall not cancel or amend any existing punitive 96 powers of the commission but is shall be supplementary thereto 97 and must shall be construed liberally to further the legislative 98 intent that adequate service be rendered by public utilities in 99 this the state in consideration for the rates, charges, fares, 100 tolls, and rentals fixed by said commission and observed by such 101 said utilities under its jurisdiction. 102
(3) The term “public utility” as used herein means all 103 persons or corporations which the commission has the authority, 104 power, and duty to regulate for the purpose of fixing rates and 105 charges for services rendered and requiring the rendition of 106 adequate service. 107
(4) An No electric utility may not collect impact fees 108 designed to recover capital costs in initiating new service 109 unless the utility can demonstrate and the commission finds that 110 such fees are fair, just, and reasonable and are collected from 111 the ultimate utility customer of record at such time as or after 112 permanent electric service is provided. This prohibition does 113 shall not apply to underground electric distribution lines or 114 line extension charges collected pursuant to approved tariffs. 115
(5) The commission shall ensure that public utilities do 116
Florida Senate - 2026 SB 1532 17-00432B-26 20261532__ Page 5 of 10 CODING: Words stricken are deletions; words underlined are additions. not recover any of the following costs from ratepayers, whether 117 as part of the proposed base rate costs, a rider, or other 118 charges: 119 (
a) More than 50 percent of annual total compensation or of 120 expense reimbursement for commissioners. 121 (
b) Tax penalties or fines issued against the public 122 utility. 123 (
c) Investor-relations expenses. 124 (
d) Advertising or public relations expenses that do not 125 directly relate to a purpose or program that is required or 126 authorized under law or commission rule or order. Such expenses 127 include any of the following: 128 1. Communications to promote the public utility’s brand. 129 2. Expenses related to lobbying or other activities meant 130 to influence the outcome of legislation. 131 (
e) Organizational or membership dues, or other 132 contributions, to any organization, association, institution, 133 corporation, or other entity that engages in lobbying or similar 134 activities intended to influence the outcome of any local, 135 state, or federal legislation, ordinance, resolution, rule, 136 ballot measure, or other regulatory decision, including, but not 137 limited to, business or industry trade associations. 138 (
f) Any amount expended to compensate attorneys or 139 technical experts, who are not public utility company staff, to 140 prepare and litigate a general rate case filing. The commission 141 shall adopt rules for determining whether additional costs 142 associated with rate case filings are recoverable. 143 (6)(
a) If the commission determines that a utility 144 improperly recovered costs pursuant to subsection (5), the 145
Florida Senate - 2026 SB 1532 17-00432B-26 20261532__ Page 6 of 10 CODING: Words stricken are deletions; words underlined are additions. commission must order the utility to refund the amount 146 improperly recovered, plus interest, to customers. Upon such 147 determination, the commission may also assess a nonrecoverable 148 penalty against the utility. The penalty may not exceed the 149 greater of the following: 150 1. Three times the amount of the expenditure made in 151 violation of paragraph (5)(a). 152 2. A fine of $5,000 per violation of paragraph (5)(
a) or 153 paragraph (5)(b), which may be inflation-adjusted annually. 154 (
b) If the commission determines that a utility, or any of 155 its subsidiaries, has violated any provision of this section, 156 the commission may refer the case to the Attorney General. The 157 Attorney General may bring action to obtain any appropriate 158 relief. 159
Section 3. Present subsection (4) of
section 366.06, 160 Florida Statutes, is redesignated as subsection (5), and a new 161 subsection (4) is added to that section, to read: 162 366.06 Rates; procedure for fixing and changing.— 163
(4) The commission shall ensure that the allowable return 164 on equity for public utilities does not exceed the national 165 average authorized return on equity for comparable public 166 utilities across the country. 167
Section
Section 366.07, Florida Statutes, is amended to 168 read: 169 366.07 Rates; adjustment.— 170
(1) Whenever the commission, after public hearing either 171 upon its own motion or upon complaint, finds that any of shall 172 find the rates, rentals, charges, or classifications, or any of 173 them, proposed, demanded, observed, charged, or collected by any 174
Florida Senate - 2026 SB 1532 17-00432B-26 20261532__ Page 7 of 10 CODING: Words stricken are deletions; words underlined are additions. public utility for any service, or in connection therewith, or 175 any of the rules, regulations, measurements, practices, or 176 contracts, or any of them, relating thereto, are unjust, 177 unreasonable, insufficient, excessive, or unjustly 178 discriminatory or preferential, or in anywise in violation of 179 law, or any service is inadequate or cannot be obtained, the 180 commission shall determine and by order fix the fair and 181 reasonable rates, rentals, charges, or classifications, and 182 reasonable rules, regulations, measurements, practices, 183 contracts, or service, to be imposed, observed, furnished, or 184 followed in the future. 185
(2) Any form of cost-tracking mechanism for a public 186 utility to recover electricity supply costs must provide for a 187 sharing of those costs whereby customers are responsible for not 188 more than 80 percent of any cost and the public utility is 189 responsible for not less than 20 percent of any cost, in 190 accordance with s. 366.81(4)(a), (
b) and (c). 191
Section
Section 366.81, Florida Statutes, is amended to 192 read: 193 366.81 Legislative findings and intent.— 194
(1) The Legislature finds and declares that it is critical 195 to use utilize the most efficient and cost-effective demand-side 196 renewable energy systems and conservation systems in order to 197 protect the health, prosperity, and general welfare of the state 198 and its citizens. Reduction in, and control of, the growth rates 199 of electric consumption and of weather-sensitive peak demand are 200 of particular importance. 201
(2) The Legislature further finds that the Florida Public 202 Service Commission is the appropriate agency to adopt goals and 203
Florida Senate - 2026 SB 1532 17-00432B-26 20261532__ Page 8 of 10 CODING: Words stricken are deletions; words underlined are additions. approve plans related to the promotion of demand-side renewable 204 energy systems and the conservation of electric energy and 205 natural gas usage. 206
(3) The Legislature directs the commission to develop and 207 adopt overall goals, and authorizes the commission to require 208 each utility to develop plans and implement programs for 209 increasing energy efficiency and conservation and demand-side 210 renewable energy systems within its service area, subject to the 211 approval of the commission. 212
(4) The Legislature directs the commission to develop and 213 adopt performance- and incentive-based rules, multiyear rate 214 plans, and other regulatory mechanisms, to achieve fair, just, 215 reasonable, and sufficient rates for electric utilities. The 216 rules must: 217 (
a) Align the financial incentives of an electric utility 218 with the interests of the utility’s customers regarding incurred 219 fuel costs; 220 (
b) Protect customers from the volatility of fuel costs and 221 improve an electric utility’s management of fuel costs; 222 (
c) Ensure that the electric utilities provide their 223 rationale for the metrics used to establish fuel costs; 224 (
d) Establish performance incentives and penalty mechanisms 225 that link an electric utility’s return on equity to the 226 achievement of performance metrics related to energy efficiency, 227 grid reliability, and cost effectiveness; 228 (
e) Require reduction of an electric utility’s return on 229 equity by 10 basis points per percent deviation upon such 230 utility’s failure to operate within a 10 percent margin of the 231 annual national average for electricity consumption, as measured 232
Florida Senate - 2026 SB 1532 17-00432B-26 20261532__ Page 9 of 10 CODING: Words stricken are deletions; words underlined are additions. by the United States Energy Information Administration, through 233 energy cost efficiency; and 234 (
f) Provide guidelines for a 50-50 debt-to-equity ratio 235 structure for electric utilities. 236
(5) Since solutions to this state’s our energy problems are 237 complex, the Legislature intends that the use of solar energy, 238 renewable energy sources, highly efficient systems, 239 cogeneration, and load-control systems be encouraged. 240 Accordingly, in exercising its jurisdiction, the commission may 241 shall not approve any rate or rate structure which discriminates 242 against any class of customers on account of the use of such 243 facilities, systems, or devices. 244
(6) This expression of legislative intent may shall not be 245 construed to preclude experimental rates, rate structures, or 246 programs. 247
(7) The Legislature further finds and declares that ss. 248 366.80-366.83 and 403.519 must are to be liberally construed in 249 order to meet the complex problems of reducing and controlling 250 the growth rates of electric consumption and reducing the growth 251 rates of weather-sensitive peak demand; increasing the overall 252 efficiency and cost-effectiveness of electricity and natural gas 253 production and use; encouraging further development of demand-254 side renewable energy systems; and conserving expensive 255 resources, particularly petroleum fuels. 256
Section 6. Paragraph (
b) of subsection (5) of
section 257 377.814, Florida Statutes, is amended to read: 258 377.814 Municipal Solid Waste-to-Energy Program.— 259
(5) FUNDING.— 260 (
b) Funds awarded under the grant programs set forth in 261
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section may not be used to support, subsidize, or enable 262 the sale of electric power generated by a municipal solid waste-263 to-energy facility to any small electric utility eligible to 264 petition the commission under s. 366.06(5) s. 366.06(4). 265