"Governor appoints 13 to new study committee on investor-owned water utilities"

Gov. Rick Scott on Friday appointed 13 members to a new committee established by the Legislature to study investor-owned water and wastewater utility systems.

Legislation dealing with the utilities has been filed the past two years amid complaints from customers about poor service and poor water quality.

HB 1379 by Rep. Jason Brodeur, R-Sanford, would have limited the amount utilities can seek to recover during rate hike requests and would have provided financial penalties against utilities that provide inadequate service.

Brodeur said complaints about Aqua Utilities Inc. contributed to his filing the bill. The utility has 23,000 water customers, with most of its water systems located in Central Florida, according to a Public Service Commission report.

But Brodeur scaled back his bill to provide only for language establishing a study committee. The bill passed the House 115-0 but died in the Senate. The language establishing the study committee was amended onto HB 1389, relating to agricultural water storage, which passed and was signed into law by Scott on April 27.

In 2011, SB 950 would have allowed water companies to recover up to 8 percent of their revenue through surcharges imposed on customers for water system upgrades.

Sen. Mike Bennett, R-Bradenton and sponsor of SB 950, said the legislation was needed to help utilities make timely water system improvements before going through the rate-setting process at the PSC. But the bill faced opposition from Aqua Utilities customers although Bennett said the bill didn't involve the utility.

PSC Commissioner Julie I. Brown will serve as chairman of the 18-member Study Committee on Investor-Owned Water and Wastewater Utility Systems. Other members include representatives of the the secretary of the Florida Department of Environmental Protection and the Office of Public Counsel and members appointed by the House speaker and Senate president.

In his July monthly newsletter, PSC Chairman Ronald Brise said the committee will "now have an excellent opportunity to research innovative strategies that will strengthen Florida’s water industry."