Senate Bill 1120 proposes amendments to the existing law regarding the securitization of retiring power plants. The bill introduces a new provision that classifies the retiring of any existing electric generating facility fueled by nonrenewable combustible energy resources as an environmental control activity. This allows energy utilities to finance the costs associated with such retirements through the issuance of environmental trust bonds, which are secured by customer charges for recovering these costs.

Additionally, the bill amends the definition of "environmental control cost" to include the unrecovered value of property that is retired, along with any demolition costs that exceed the salvage value of the property. This change broadens the scope of what can be considered an environmental control cost, thereby facilitating the financing of retiring nonrenewable energy facilities. Overall, the bill aims to enhance the ability of energy utilities to manage the financial implications of retiring older, polluting power plants.

Statutes affected:
Bill Text: 196.027(1)(f), 196.027