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State of Florida

Public Service Commission
Capital Circle Office Center 2540 Shumard Oak Boulevard
Tallahassee, Florida 32399-0850

-M-E-M-O-R-A-N-D-U-M-

DATE:

November 18, 2004

TO:

Director, Division of the Commission Clerk & Administrative Services (Bayó)

FROM:

Division of Economic Regulation (Clapp, Rieger, Romig)

Office of the General Counsel (Vining)

RE:

Docket No. 020945-SU – Application for transfer of Certificate No. 473-S in Highlands County from Creola, Inc. to Francis I Utility, L.L.C.

County: Highlands

AGENDA:

11/30/04 – Regular Agenda – Proposed Agency Action for Issues 2 and 3 – Interested Persons May Participate

CRITICAL DATES:

None

SPECIAL INSTRUCTIONS:

None

FILE NAME AND LOCATION:

S:\PSC\ECR\WP\020945SU.RCM.DOC

 

Case Background

Creola, Inc. (Creola or utility) is a Class C utility serving Francis Mobile Estates I and II, mobile home communities of approximately 684 residential and 8 general service wastewater customers in Highlands County.  Water service is provided by the City of Sebring.  The utility is in the Highlands Ridge Water Use Caution Area of the Southwest Florida Water Management District.  Pursuant to Order No. PSC-92-0956-FOF-SU, issued September 9, 1992, in Docket No. 910933-SU, In Re: Application of Creola, Inc. for a Wastewater Certificate in Highlands County, Creola was granted Certificate No. 473-S for its wastewater system.  No modifications have been made to the certificate since it was issued.  The utility’s 2003 annual report shows gross revenue of $120,451 and a net operating income of $0.00.

            On August 30, 2002, an application for transfer of the wastewater system was filed by Francis I Amenities Corporation, Inc. Trust (the Trust).  According to the application, on March 2, 2001, the utility and the Trust entered into an agreement for purchase and sale of the utility and multiple properties within the Francis Mobile Estates I.  The closing on the transfer took place on June 15, 2001.  Subsequently, the Trust filed an agreement assigning all of its contractual rights and interests in the utility to Francis I Utility, L.L.C., (Francis I or buyer), as of August 11, 2003. 

This recommendation addresses the transfer of the wastewater facilities and certificate from Creola to Francis I.  The Commission has jurisdiction to consider this matter pursuant to section 367.071, Florida Statutes.

Discussion of Issues

Issue 1:  Should the transfer of facilities and Certificate No. 473-S from Creola to Francis I be approved?

Recommendation:  Yes.  The transfer of facilities and Certificate No. 473-S from Creola to Francis I Utility, L.L.C., is in the public interest and should be approved effective the date of the Commission’s vote.  Francis I should be responsible for all RAFs and annual reports for 2004 and the future.  The territory being transferred is described in Attachment A.  (Clapp, Rieger, Romig)

Staff Analysis:  As stated in the case background, the Trust applied for a transfer of facilities and Certificate No. 473-S in Highlands County from Creola to Francis I Amenities Corporation, Inc. Trust on August 30, 2002.  The closing on the transfer of the utility facilities and purchase of the land took place on June 15, 2001, subject to approval by the Commission.  The Trust assigned all of its contractual rights and interests in the utility to Francis I Utility, L.L.C., on August 11, 2003.  The Trust is the sole member of Francis I.

All of the filing requirements for the application were completed on August 4, 2004.  The application as filed and amended is in compliance with the governing statute, section 367.071, Florida Statutes, and other pertinent statutes and administrative rules pertaining to an application for the sale, assignment or transfer of certificates of authorization.  The territory being transferred is described in Attachment A. 

Noticing.  Pursuant to Rule 25-30.030, Florida Administrative Code, the application contained the requisite proof of noticing.  No objections to the application were received by the Commission and the time for filing such has expired.

Sales Contract and Financing.  The application contains documentation to comply with Rule 25-30.037(2)(g), (h), (i), and (k), Florida Administrative Code, regarding terms of the sale and financing of the purchase, including a copy of the agreement for purchase and sale.  The purchase price for the utility and land of $325,000 is part of a $4 million purchase of the Francis I Mobile Home Park.  The purchase is secured by a 10-year $3,100,000 mortgage at 6.95% for the entire purchase.

Proof of Ownership.  Rule 25-30.037(2)(q), Florida Administrative Code, requires the utility to provide proof of ownership or an agreement for long term use of the land upon which its facilities are located.  The application contains a copy of the recorded warranty deed transferring the property upon which the utility treatment facilities are located to Francis I. 

Annual Reports and Regulatory Assessment Fees (RAFs).  Staff has verified that, in accordance with Rule 25-30.037(2)(r), Florida Administrative Code, the application contains a statement regarding the disposition of any outstanding RAFs, fines, or refunds owed.  Staff has verified that the 2003 and all previous annual reports were timely filed.  Also, RAF Reports have been filed and the RAFs have been paid timely through December 31, 2003.  No penalties, late fees, interest, or refunds are due or outstanding for compliance with the Commission’s Annual Reporting or RAF requirements.  Francis I will be responsible for the 2004 and all future annual reports and RAFs.

Environmental Compliance.  Pursuant to Rule 25-30.037(3)(p), Florida Administrative Code, the application contains a statement that the buyer has performed a reasonable investigation of the utility system and found the overall condition of the wastewater treatment plant and facilities to be in satisfactory condition and in general compliance with the requirements of the Department of Environmental Protection (DEP).  Staff has contacted DEP and verified that there are no outstanding notices of violation.

Public Interest.  The application contains a statement, pursuant to Rule 25-30.037(2)(j), Florida Administrative Code, that the transfer is in the public interest.  Creola sold its assets in Sebring, Florida, to a group of mobile home park residents.  Francis I Mobile Homeowners Assn., Inc., purchased the rental lots and other vacant land.  The shared common amenities were bought by Francis I Amenities Corporation, Inc. (Amenities).  Francis I Amenities Corporation, Inc. Trust purchased the wastewater system and subsequently assigned its interest to Francis I Utility, L.L.C.

The applicant indicated that the transfer is in the public interest because the owners have a significant investment in all three entities formed for the three purchases listed above.  There are 161 shareholders of Amenities who own 162 lots (24%) in the mobile home park and have a direct personal and financial interest in both the Amenities and the Trust.  The Francis I investors live within the service territory and personally know the quality of the wastewater service.  Francis I has contracted with the same certified operator for plant operations that has been used by Creola and the utility will continue to employ the personnel who are familiar with the administrative and regulatory affairs of the utility.

Territory Description.  Although the same area is described, the territory description submitted with the utility’s transfer application appears different than the area represented in the Commission’s earlier order granting the utility its original certificate.  The territory description reflected in Order No. PSC-92-0956-FOF-SU, in Docket No. 910933-SU, issued September 9, 1992, In Re: Application of Creola, Inc. for a Wastewater Certificate in Highlands County, Florida, shows eight distinct parcels, each with beginning and ending metes and bounds descriptions.  There have been no territory amendments since that order was issued.  The territory description submitted with the transfer application shows one continuous metes and bounds description which encompasses all the parcels separately identified in the earlier order.  The utility has explained to staff that the reason for the change in the territory description is because it was not sure that the original description met the metes and bounds requirements per Commission rule.  In addition, the utility believes that it is better to have its territory described through a single description as opposed to the earlier multiple descriptions.  The description submitted by the utility describes the same area detailed in Order No. PSC-92-0956-FOF-SU.  Therefore staff recommends that the revised territory description reflected in Attachment A be approved.

Conclusion.  Based on the above, staff recommends that the transfer of facilities and Certificate No. 473-S from Creola to Francis I Utility, L.L.C., is in the public interest and should be approved effective the date of the Commission’s vote.  Francis I should be responsible for all RAFs and annual reports for 2004 and the future.  The territory being transferred is described in Attachment A.


Issue 2:  What is the rate base of Creola at the time of transfer?

Recommendation:  The rate base is $62,328 for the wastewater system as of August 11, 2003. The utility should be required to provide proof within 60 days of the date of the order that it has set up its books and records using the National Association of Regulatory Utility Commissioners (NARUC) Uniform System of Accounts (USOA) and that adjustments to plant balances have been made to reflect the balances as of August 11, 2003, established pursuant to this order.  (Clapp)

Staff Analysis:   Rate base was last set for the utility as of August 31, 1993, pursuant to Order No. PSC-94-0569-FOF-SU, issued May 13, 1994, in Docket No. 930847-SU, In Re: Application for a staff-assisted rate case in Highlands County by Creola, Inc.  A subsequent compliance audit was performed as of year end 1996.  The transfer of Creola’s assets occurred on June 15, 2001, with the subsequent assignment of rights on August 11, 2003.  Therefore, staff recommends that rate base be established for transfer purposes as of August 11, 2003.

Books and Records.  Creola failed to maintain its books and records in accordance with the NARUC USOA.  Pursuant to Rule 25-30.115(1), Florida Administrative Code, all water and wastewater utilities are to maintain their accounts and records in conformity with the NARUC USOA.  Staff recommends that the utility should be required to provide proof, within 60 days of the Commission’s order becoming final, that it has set up its books and records using the NARUC USOA and that the adjustments to plant balances have been made to reflect the balances established pursuant to this order as of August 11, 2003.

Utility-Plant-in-Service (UPIS).  The UPIS balance in the SARC order was $382,918, as of August 31, 1993.  Staff reviewed invoices and other documents to support plant additions of $104,758 from September 1, 1993, through August 11, 2003.  In addition, staff recommends that an adjustment of $39,319 be made for retired assets which were not removed from Creola’s books.  Therefore, staff recommends that the utility’s UPIS balance should be adjusted to include the additions and retirements noted above, leaving a balance of $448,357 in UPIS as of August 11, 2003.

Land.  The utility’s books and records reflect the balance for land established in the previous rate case of $1,768 for its 4.727 acres.  Therefore, staff recommends that the utility’s land account should not be modified.

Accumulated Depreciation.  Creola’s accumulated depreciation as of August 31, 1993, was  $149,813.  The accumulated depreciation reflected on the utility’s books did not reflect the guideline rates in Rule 25-30.140, Florida Administrative Code.  In addition the utility did not adjust accumulated depreciation for retired assets.  Staff recommends that the utility’s accumulated depreciation be increased by $215,337 to reflect depreciation from September 1, 1993, to August 11, 2003, using the guideline rates in Rule 25-30.140, Florida Administrative Code, and decreased by $39,319 for plant retirements, resulting in a balance of $325,831 as of August 11, 2003.

Contributions-In-Aid-of-Construction.  The utility’s Contributions-In-Aid-of-Construction (CIAC) as of August 31, 1993, was $271,039, pursuant to the SARC order.  No connections were added since August 31, 1993.  Therefore, staff recommends that no change be made to CIAC.

Accumulated Amortization of Contributions-In-Aid-of-Construction.  The balance in accumulated amortization of Contributions-In-Aid-of-Construction (CIAC) in the SARC order was $108,688.  Staff recommends that the accumulated amortization balance be increased by $100,385 for the period of September 1, 1993, through August 11, 2003, resulting in an accumulated amortization balance of $209,073 as of August 11, 2003.

Conclusion.  Staff recommends that, as of August 11, 2003, rate base is $62,328 for the wastewater system.  Schedule No. 1 shows the calculation of wastewater rate base.  Schedule No. 2 details staff’s recommended adjustments.  Schedule No. 3 shows staff’s recommended account balances for UPIS and accumulated depreciation as of August 11, 2003.  Staff notes that rate base for transfer purposes does not include the normal ratemaking adjustments for working capital or used and useful.  Within 60 days of the date of the order, the utility should be required to provide a statement from its accountant indicating that the utility’s books have been set up using NARUC USOA and adjusted to reflect the Commission approved rate base balances as of August 11, 2003.


Issue 3:  Should an acquisition adjustment be approved?

Recommendation:  No.  An acquisition adjustment should not be included in the calculation of rate base for transfer purposes.  (Clapp)

Staff Analysis:  An acquisition adjustment results when the purchase price differs from the original cost of the assets adjusted to the time of the acquisition.  The calculation of an acquisition adjustment is shown below.

Purchase Price                                                          $325,000

Commission Established Rate Base                           $62,328

Positive Acquisition Adjustment                              $262,672

Pursuant to  Rule 25-30.0371, Florida Administrative Code, a positive acquisition adjustment shall not be included in rate base absent proof of extraordinary circumstances.  The buyer has neither requested an acquisition adjustment nor identified any extraordinary circumstances.  Therefore, staff recommends that an acquisition adjustment should not be included in the calculation of rate base for transfer purposes.


Issue 4:  Should the rates and charges approved for this utility be continued?

Recommendation:  Yes.  The rates and charges approved for Creola should be continued until authorized to change by the Commission in a subsequent proceeding.  The tariff pages reflecting the transfer should be effective for services provided or connections made on or after the stamped approval date on the tariff sheets.  (Clapp)

Staff Analysis:  Rule 25-9.044(1), Florida Administrative Code, provides that, “[i]n the case of change of ownership or control of a utility which places the operation under a different or new utility . . . the company which will thereafter operate the utility business must adopt and use the rates, classification and regulations of the former operating company (unless authorized to change by the commission).”

Creola’s current rates for wastewater service were approved by the Commission in an administrative price index proceeding effective August 2, 1998.  Service availability and other charges were approved pursuant to Order No. PSC-94-0569-FOF-SU, issued May 13, 1994, in Docket No. 930847-SU, In Re: Application for a staff-assisted rate case in Highlands County by Creola, Inc.  The utility’s approved rates and charges are shown on Schedule No. 4.

Francis I provided a statement that, at the time of closing, there were ten residential customers with life leases which contain provisions wherein the garbage collection fees, the monthly wastewater bills, and lawn maintenance costs were included in the total monthly lease payments.  The Francis I Mobile Homeowners Association, Inc. pays the monthly wastewater charges to the utility for the customers subject to the life leases.  As a result, the utility collects payment from or on behalf of all customers. 

Francis I has not requested a change in the rates and charges of the utility.  Accordingly, staff recommends that the existing rates and charges for Creola be continued, pursuant to Rule 25-9.044(1), Florida Administrative Code, until authorized to change by the Commission in a subsequent proceeding.  The tariff pages reflecting the transfer should be effective for services provided or connections made on or after the stamped approval date on the tariff sheets.


Issue 5:  Should this docket be closed?

Recommendation:  No.  If no timely protest is received to the proposed agency action issues, the Order will become final upon the issuance of a Consummating Order.  However, the docket should remain open pending receipt of the statement from the utility’s accountant indicating that the utility’s books have been adjusted to reflect the Commission approved rate base adjustments and balances.  Upon receipt of the statement, the docket should be administratively closed.  (Vining)

Staff Analysis:  If no timely protest is received to the proposed agency action issues, the Order will become final upon the issuance of a Consummating Order.  However, the docket should remain open pending receipt of the statement from the utility’s accountant indicating that the utility’s books have been adjusted to reflect the Commission approved rate base adjustments and balances.  Upon receipt of the statement, the docket should be administratively closed.


            ATTACHMENT A

 

Creola, Inc. to Francis I Transfer Application

Territory Description

Highlands County

A PORTION OF SECTION 5, TOWNSHIP 35 SOUTH, RANGE 29 EAST, AND A PORTION OF SECTION 32, TOWNSHIP 34 SOUTH, RANGE 29 EAST, HIGHLANDS COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCE AT THE NORTHWEST CORNER OF SAID SECTION 5; THENCE NORTH 89°43'55" EAST ALONG THE NORTH LINE OF SAID SECTION  5, A DISTANCE OF 209.49 FEET; THENCE SOUTH 01°12'00" WEST, A DISTANCE OF 182.05 FEET FOR THE POINT OF BEGINNING; THENCE CONTINUE SOUTHERLY ALONG SAID LINE, A DISTANCE OF 159.72 FEET; THENCE SOUTH 89°42'11" EAST, A DISTANCE OF 179.98 FEET; THENCE NORTH 01°12'00" EAST, A DISTANCE OF 159.73 FEET; THENCE NORTH 89°42'25" WEST, A DISTANCE OF 179.98 FEET; THENCE NORTH 01°12'00" EAST, A DISTANCE OF 182.05 FEET; THENCE NORTH 89°43'55" EAST ALONG THE NORTH LINE OF SAID SECTION  5, A DISTANCE OF 453.25 FEET; THENCE SOUTH 00°53'33" WEST, A DISTANCE OF 682.26 FEET; THENCE SOUTH 89°40'55" EAST, A DISTANCE OF 329.75 FEET; THENCE SOUTH 00°52'20" WEST, A DISTANCE OF 685.64 FEET; THENCE NORTH 89°05'45" WEST, A DISTANCE OF 956.94 FEET TO A POINT ON THE WEST RIGHT OF WAY LINE OF SPARTA ROAD; THENCE SOUTH 00°55'55" WEST ALONG THE SAID WEST RIGHT OF WAY LINE, A DISTANCE OF 199.66 FEET TO THE INTERSECTION WITH THE CENTER LINE OF THE UPPER JACKSON CREEK EASEMENT; THENCE SOUTH 48°39'54" EAST ALONG SAID EASEMENT CENTER LINE FOR A DISTANCE OF 14.03 FEET TO A POINT OF CURVE TO THE LEFT HAVING A RADIUS OF 521.67 FEET AND A CENTRAL ANGLE OF 40°36'00"; THENCE EASTERLY ALONG THE ARC A DISTANCE OF 369.09 FEET; THENCE SOUTH 89°15'54" EAST, STILL ALONG THE CENTER LINE OF SAID EASEMENT, A DISTANCE OF 1,173.64 FEET TO THE POINT OF CURVE TO THE RIGHT HAVING A RADIUS OF 573.69 FEET AND A CENTRAL ANGLE OF 65°01'10"; THENCE SOUTHEASTERLY ALONG THE ARC FOR A DISTANCE OF 651.03 FEET; TO A POINT ON THE NORTH-SOUTH QUARTER SECTION LINE; THENCE NORTH 00°48'18" EAST ALONG SAID NORTH-SOUTH LINE, A DISTANCE OF 2,066.57 FEET; THENCE NORTH 89°43'55" EAST ALONG THE NORTH LINE OF SAID SECTION  5, A DISTANCE OF 380.98 FEET; THENCE SOUTH 00°16'05" EAST, A DISTANCE OF 33.00 FEET TO A POINT ON THE SOUTH RIGHT OF WAY LINE OF DESOTO ROAD; THENCE SOUTH 89°43'55" WEST ALONG SAID SOUTH RIGHT OF WAY LINE, A DISTANCE OF 152.32 FEET; THENCE SOUTH 00°16'05" EAST, A DISTANCE OF 19.09 FEET TO THE POINT OF CURVE OF A NON TANGENT CURVE TO THE LEFT, OF WHICH THE RADIUS POINT LIES SOUTH 00°16'04" EAST, A RADIAL DISTANCE OF 47.50 FEET; THENCE SOUTHWESTERLY ALONG THE ARC, THROUGH A CENTRAL ANGLE OF 49°56'03", A DISTANCE OF 41.40 FEET; THENCE SOUTH 39°47'53" WEST, A DISTANCE OF 49.25 FEET; THENCE SOUTH 06°41'46" EAST, A DISTANCE OF 70.31 FEET TO A POINT ON THE NORTH RIGHT OF WAY LINE OF U.S. HIGHWAY NO. 27 AND TO A POINT OF CURVE OF A NON TANGENT CURVE TO THE LEFT, OF WHICH THE RADIUS POINT LIES NORTH 46°59'11" EAST, A RADIAL DISTANCE OF 1,784.86 FEET; THENCE SOUTHEASTERLY ALONG SAID RIGHT OF WAY LINE AND SAID ARC, THROUGH A CENTRAL ANGLE OF 03°29'16", A DISTANCE OF 108.65 FEET; THENCE SOUTH 46°30'05" EAST ALONG SAID RIGHT OF WAY LINE, A DISTANCE OF 81.00 FEET; THENCE NORTH 43°29'55" EAST, A DISTANCE OF 289.94 FEET; THENCE NORTH 00°16'05" WEST, A DISTANCE OF 67.72 FEET TO A POINT ON THE SAID SOUTH RIGHT OF WAY LINE OF DESOTO ROAD; THENCE SOUTH 89°43'55" WEST ALONG SAID SOUTH RIGHT OF WAY LINE, A DISTANCE OF 122.68 FEET; THENCE NORTH 00°16'05" WEST, A DISTANCE OF 58.00 FEET TO A POINT ON THE ON THE NORTH RIGHT OF WAY LINE OF SAID DESOTO ROAD; THENCE NORTH 89°43'55" EAST ALONG THE SAID NORTH RIGHT OF WAY LINE AND PARALLEL TO THE NORTH LINE OF SAID SECTION 5, A DISTANCE OF 2,219.40 FEET TO A POINT ON THE WEST RIGHT OF WAY LINE OF HIGHLANDS AVENUE; THENCE NORTH 00°54'25" EAST ALONG SAID WEST RIGHT OF WAY LINE AND PARALLEL TO THE EAST LINE OF SAID SECTION 32, A DISTANCE OF 840.19 FEET; THENCE SOUTH 89°43'55" WEST PARALLEL TO THE NORTH LINE OF SAID SECTION 5, A DISTANCE OF 645.83 FEET; THENCE SOUTH 50°02'25" WEST, A DISTANCE OF 355.64 FEET; THENCE SOUTH 89°43'55" WEST PARALLEL TO THE NORTH LINE OF SAID SECTION 5, A DISTANCE OF 1,317.14 FEET; THENCE SOUTH 00°16'05" EAST, A DISTANCE OF 637.88 FEET TO A POINT ON THE NORTH LINE OF SAID SECTION 5; THENCE SOUTH 89°43'55" WEST ALONG THE NORTH LINE OF SAID SECTION 5, A DISTANCE OF 380.98 FEET TO THE SAID NORTH-SOUTH QUARTER SECTION LINE; THENCE SOUTH 00°48'18" WEST ALONG SAID NORTH-SOUTH LINE, A DISTANCE OF 1,138.81 FEET; THENCE NORTH 51°57'02" WEST, A DISTANCE OF 623.89 FEET; THENCE NORTH 38°18'43" EAST, A DISTANCE OF 255.61 FEET; THENCE NORTH 52°02'53" WEST, A DISTANCE OF 214.84 FEET; THENCE NORTH 38°18'43" EAST, A DISTANCE OF 64.95 FEET; THENCE SOUTH 55°27'21" EAST, A DISTANCE OF 14.47 FEET; THENCE NORTH 37°57'33" EAST, A DISTANCE OF 36.48 FEET; THENCE SOUTH 52°02'27" EAST, A DISTANCE OF 176.00 FEET; THENCE NORTH 37°57'33" EAST, A DISTANCE OF 100.00 FEET; THENCE SOUTH 52°02'27" EAST, A DISTANCE OF 24.00 FEET; THENCE NORTH 37°57'33" EAST, A DISTANCE OF 220.00 FEET TO A POINT ON THE SOUTH RIGHT OF WAY LINE OF U.S. HIGHWAY NO. 27 AND TO A POINT OF CURVE OF A NON TANGENT CURVE TO THE LEFT, OF WHICH THE RADIUS POINT LIES SOUTH 37°57'33" WEST, A RADIAL DISTANCE OF 3,087.12 FEET; THENCE NORTHWESTERLY ALONG SAID SOUTH RIGHT OF WAY LINE AND ALONG SAID ARC, THROUGH A CENTRAL ANGLE OF 06°30'21", A DISTANCE OF 350.54 FEET TO A POINT ON THE EASTERLY RIGHT OF WAY LINE OF SEBRING DRIVE; THENCE SOUTH 38°15'50" WEST ALONG SAID RIGHT OF WAY LINE, A DISTANCE OF 240.23 FEET;  THENCE NORTH 51°44'02" WEST, A DISTANCE OF 213.62 FEET; THENCE NORTH 01°01'46" EAST, A DISTANCE OF 80.00 FEET TO A POINT ON THE NORTH LINE OF SAID SECTION 5; THENCE CONTINUE NORTH 01°01'46" EAST, A DISTANCE OF 146.53 FEET TO A POINT ON THE SAID SOUTH RIGHT OF WAY LINE OF U.S. HIGHWAY NO. 27 AND TO A POINT OF CURVE OF A NON TANGENT CURVE TO THE LEFT, OF WHICH THE RADIUS POINT LIES SOUTH 24°59'42" WEST, A RADIAL DISTANCE OF 3,087.12 FEET; THENCE NORTHWESTERLY ALONG SAID SOUTH RIGHT OF WAY LINE AND SAID ARC, THROUGH A CENTRAL ANGLE OF 04°42'30", A DISTANCE OF 253.69 FEET; THENCE SOUTH 04°18'51" WEST, A DISTANCE OF 123.38 FEET; THENCE NORTH 80°35'18" WEST, A DISTANCE OF 196.24 FEET; THENCE SOUTH 05°01'51" WEST, A DISTANCE OF 155.89 FEET; THENCE SOUTH 89°43'55" WEST ALONG THE NORTH LINE OF SAID SECTION  5, A DISTANCE OF 437.73 FEET; THENCE NORTH 22°24'20" EAST, A DISTANCE OF 292.60 FEET; THENCE NORTH 25°33'07" WEST, A DISTANCE OF 157.82 FEET TO A POINT ON THE SAID SOUTH RIGHT OF WAY LINE OF U.S. HIGHWAY NO. 27 AND TO A POINT OF CURVE OF A NON TANGENT CURVE TO THE LEFT, OF WHICH THE RADIUS POINT LIES SOUTH 08°05'23" WEST, A RADIAL DISTANCE OF 3,087.58 FEET; THENCE WESTERLY ALONG SAID SOUTH RIGHT OF WAY LINE AND SAID ARC, THROUGH A CENTRAL ANGLE OF 02°55'48", A DISTANCE OF 157.89 FEET; THENCE SOUTH 29°50'23" EAST, A DISTANCE OF 104.78 FEET; THENCE SOUTH 82°11'48" WEST, A DISTANCE OF 5.00 FEET; THENCE SOUTH 03°11'48" WEST, A DISTANCE OF 340.47 FEET; THENCE SOUTH 89°43'55" WEST ALONG THE NORTH LINE OF SAID SECTION  5, A DISTANCE OF 320.05 FEET; THENCE CONTINUE WESTERLY ALONG SAID LINE, A DISTANCE OF 453.25 FEET; THENCE SOUTH 01°12'00" WEST, A DISTANCE OF 182.05 FEET TO THE POINT OF BEGINNING.

 

 


 

SCHEDULE NO. 1

CREOLA, INC.

SCHEDULE OF WASTEWATER RATE BASE

AS OF AUGUST 11, 2003

 

DESCRIPTION

BALANCE

PER SARC

STAFF’S

ADJUSTMENTS

 

BALANCE

PER STAFF

Utility Plant in Service

$382,918   

$65,439  

A

$448,357     

Land

1,768   

0   

 

1,768     

Accumulated Depreciation

(149,813)  

(176,018) 

B

(325,831)    

Contributions in Aid of

   Construction (CIAC)

 

(271,039)  

 

0   

 

 

 

(271,039)    

Amortization of CIAC

 108,688   

 100,385   

C

 209,073     

WASTEWATER RATE BASE

$ 72,522   

($10,194)  

 

$62,328     

 

 

 

SCHEDULE NO. 2

CREOLA, INC.

SCHEDULE OF WASTEWATER RATE BASE ADJUSTMENTS

 

 

EXPLANATION

STAFF RECOMMENDED

ADJUSTMENT

A

1

2

Utility-Plant-in-Service

  To record plant additions

  To record plant retirements

 

$104,758 

 (39,319)

 65,439 

 

B

1

2

Accumulated Depreciation

  To record depreciation from September 1, 1993 to August 11, 2003

  To record retirements

 

 ($215,337)

39,319 

 (176,018)

 

C

Accumulated Amortization of CIAC

  To record amortization

 

$100,385

 

Total Adjustments

 ($10,194)

 

 


 

 

CREOLA, INC.

SCHEDULE NO. 3 

STAFF RECOMMENDED AUGUST 11, 2003 PLANT BALANCE

 

 

 

 

 

ACCUMULATED

 

 

PLANT

DEPRECIATION

ACCT NO.

ACCOUNT NAME

BALANCE

BALANCE

 

 

 

 

351

Organization

$2,786

$1,079

354

Structures and Improvements

8,579

3,373                           

360

Collection – Forced Sewer

101,205

65,449

361

Collection – Gravity Sewer

178,572

146,540

362

Services

293

86

370

Receiving Wells

1,623

1,092

380

Transmission and Distribution Equipment

114,407

91,379

381

Plant Sewers

436

178

382

Outfall Sewer Lines

90

81

389

Other Plant & Misc. Equipment

2,479

1,127

390

Office Furniture and Equipment

2,457

1,377

391

Transportation Equipment

34,579

13,219

395

Power Operated Equipment

         851

    851

 

 

 

 

 

Total Water Plant

$448,357

$325,831

 

 

 

 


 

CREOLA, INC.

DOCKET NO. 020945-SU

Schedule of Rates and Charges

Schedule No. 4

 

 

 

Monthly Service Rates

 

WASTEWATER

Residential Service

 

 

 

           Flat Rate

$13.80

 

 

General Service

 

Base Facility Charge

Meter Size:

 

 

5/8" x 3/4"

$7.58

 

3/4"

11.37

 

1"

18.93

 

1 ½”

37.87

 

2"

60.59

 

3"

121.18

 

4"

189.33

 

6"

378.68

 

Charge per 1,000 gallons:

$3.79

 

 

 

 

SERVICE AVAILABILITY CHARGES

Plant capacity charge

$500.00

per ERC