This bill amends section 180.191 of the Florida Statutes, which governs the rates, fees, and charges that municipal water and sewer utilities can impose on consumers outside their municipal boundaries. The bill removes the existing limitation that allowed municipalities to charge a surcharge of no more than 25 percent on rates for consumers outside the municipality. Instead, it allows municipalities to charge rates that are just and equitable, based on the same factors used for consumers within the municipality, while also permitting the continuation of certain bond covenant surcharges necessary for compliance with existing debt obligations. These surcharges must be phased out upon the retirement or refinancing of the applicable debt.

Additionally, the bill requires municipalities to submit a rate study to the Department of Environmental Protection every seven years, starting January 1, 2028. This study must evaluate the utility's future capital investment needs, the sufficiency of rates to cover operating costs and debt obligations, and the equitable distribution of costs among customer classes. Municipalities serving fewer than 10,000 customers may request a two-year extension to complete the study if they demonstrate undue financial or administrative burden. The act is set to take effect on July 1, 2026.

Statutes affected:
S 940 Filed: 180.191