State Sen. Don Gaetz has partnered with Sen. Jennifer Bradley, Chair of the Regulated Industries Committee, to introduce Senate Bill 354 – legislation aimed at transforming how Florida’s Public Service Commission (PSC) operates and makes decisions about utility rates.
- The bill addresses what Florida Supreme Court Chief Justice Carlos Munoz in December called a “black hole” – the process by which the PSC approves utility rate increases that affect millions of Floridians. According to Gaetz, if the Florida Supreme Court Chief Justice can’t understand the PSC’s decision-making process, how can average citizens be expected to comprehend why their utility bills keep rising?
Expanding the Commission with Financial Expertise
SB 354 proposes expanding the Public Service Commission by adding two new positions — a Certified Public Accountant and a Financial Analyst — because the PSC’s decisions are increasingly complex, requiring detailed mathematical analysis and financial acumen.
- “Virtually everything the Public Service Commission does requires detailed mathematical analysis,” Gaetz explained in his recent interview with me. “It’s important that somebody on the commission for sure be able to read a balance sheet and be able to understand what the utilities are proposing.”
Transparency on Cost Drivers
The bill would require more transparency for utility companies and would have to disclose the cost drivers behind proposed rate increases clearly. Unlike private businesses that must compete for customers and adjust prices based on market forces, utility companies operate as government-granted monopolies. Floridians cannot simply switch providers if they’re dissatisfied with service or rates.
- This monopoly status, Gaetz argues, creates a public interest in greater transparency, particularly regarding executive compensation at utility companies. “If you’re asking for a rate increase, if you’re asking for the government to mandate a rate increase about which the customers have nothing to say… then if executive compensation is a cost driver, then the Public Service Commission needs to know what those costs are.”
Return on Investment Analysis for Resilience Projects
Florida’s utilities regularly invest in “resilience projects” – like replacing wooden poles with concrete ones or moving overhead lines underground – to strengthen infrastructure against storms. While no one questions the importance of resilience, SB 354 proposes utilities to provide a return-on-investment analysis for these projects.
“Not every dollar that pumped into resilience produces a dollar’s worth of results,” Gaetz noted. His bill would ensure ratepayers understand what benefits they’re receiving for their investment and hold utilities accountable for delivering actual results.
Podcast
In the interview, Sen. Gaetz discusses an ethics bill targeting false claims of military service for personal gain and addressing unpaid fines for election and ethics violations. He also talks about his affordable housing bill promoting accessory dwelling units (ADUs) to alleviate housing issues.
The state senator mentions two forthcoming bills: one reforming public school funding and another addressing the constitutional amendment petition process. Gaetz emphasizes the need for transparency and accountability in these areas to better serve Florida’s residents.
