A bill requiring municipal water and sewer utilities to charge uniform rates in interlocal arrangements passed the Florida House unanimously Wednesday.
House Bill 11, sponsored by Rep. Fiona Robinson, mandates that a municipality providing water or sewer services to consumers in a separate municipality must charge those consumers the same rates, fees and charges as it does to its own residents if the treatment facility serving them is located within the separate municipality’s boundaries.
Current law allows municipalities to impose higher utility rates for service outside their jurisdiction. Under section 180.191, Florida Statutes, municipalities may charge the same base rates plus a surcharge of up to 25%, or establish separate rates based on equitable factors with an added surcharge, so long as the total amount does not exceed 50% more than what is charged internally. HB 11 creates an exception to that framework by prohibiting rate differentials when a treatment plant is located within the city being served.
“I am proud to champion this legislation to ensure that no Florida resident is unfairly charged for essential services simply because of where they live,” said Rep. Robinson. “This bill represents a step toward fairer pricing, responsible municipal management, and putting the needs of Floridians first.”
The measure would apply only in instances where municipal utility infrastructure physically exists in the municipality receiving the service. It does not apply to unincorporated areas or service territories where no such facility is located.
A legislative staff analysis notes that the bill could reduce revenue for some municipal utilities that currently assess surcharges under these conditions. At the same time, it may result in lower utility costs for consumers located in neighboring jurisdictions. The bill does not affect private utilities or utilities regulated by the Florida Public Service Commission.
The legislation is scheduled to take effect July 1.
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