DATE:	November 17, 2005
TO:	Director, Division of the Commission Clerk & Administrative Services (Bayó)
FROM:	Division of Economic Regulation (Johnson, Brady, Clapp, Daniel, Kaproth, Redemann, Rieger, Walden, Willis) Office of the General Counsel (Brubaker)
RE:	Docket No. 040951-WS – Joint application for approval of sale of Florida Water Services Corporation's land, facilities, and certificates in Brevard, Highlands, Lake, Orange, Pasco, Polk, Putnam, a portion of Seminole, Volusia, and Washington counties to Aqua Utilities Florida, Inc.   Docket No. 040952-WS – Joint application for approval of sale of Florida Water Services Corporation's land, facilities, and certificates for Chuluota systems in Seminole County to Aqua Utilities Florida, Inc.
AGENDA:	11/29/05 – Regular Agenda – Proposed Agency Action Issues 3, 4, 5, 6,7, 9 and 10 -Interested Persons May Participate
COMMISSIONERS ASSIGNED:		All Commissioners
PREHEARING OFFICER:		Deason
CRITICAL DATES:		None
SPECIAL INSTRUCTIONS:		None
FILE NAME AND LOCATION:		S:\PSC\ECR\WP\040951.RCM.DOC

 

 Case Background

            Florida Water Services Corporation (FWSC or utility) formerly Southern States Utilities, Inc., is a Class A utility providing water and wastewater service to sixty systems in Brevard, Highlands, Lake, Orange, Pasco, Polk, Putnam, Seminole, Volusia, and Washington Counties.  The service areas are located in four of the state’s five water management districts.  As of June 30, 2004, FWSC was serving approximately 11,146 water and 3,645 wastewater customers.  FWSC’s annual report for January through June 2004 shows operating revenue of $2,476,153 and $951,705, and operating losses of $1,305,105 and $496,198, for water and wastewater, respectively.

 

The utility’s most recent rate case was in Docket No. 950495-WS.[1]  Order No. PSC-96-1320-FOF-WS, issued October 30, 1996, established rate bases by system for the utility’s 141 water and wastewater systems and authorized a rate increase using a capband rate structure.  The Commission increased service availability charges for all of the utility’s water and wastewater systems, made them uniform, and authorized an allowance for funds prudently invested (AFPI) for the systems that were not one hundred percent used and useful.  This order was appealed.  In Southern States Utilities, Inc. v. FPSC, 714 So. 2d l046 (Fla. 1^st DCA 1998), the First District Court of Appeal affirmed the capband rate structure, reversed the used and useful adjustment for reuse, reversed the equity adjustment, and reversed errors regarding canceling prior approved allowance for funds prudently invested (AFPI) and the use of annual average daily flows (AADF) in the numerator of the used and useful equation, and remanded AADF and the use of lot count method in determining used and useful percentages

Order No. PSC-99-0093-FOF-WS, issued January 15, 1999, in Docket No. 950495-WS, addressed two offers of settlement and the Commission’s decision on remand.  The Commission rejected both offers of settlement and authorized the utility to implement a surcharge to address the issues reversed by DCA.  In addition, a surcharge methodology was approved and the record was reopened for another evidentiary hearing to address the used and useful issues remanded by the court.  The order was protested.

In an effort to resolve the dispute over the settlements modifications, FWSC offered a new settlement agreement.  The purpose of the new settlement was to resolve the outstanding issues on remand, as required by the court.  Order No. PSC-99-1794-FOF-WS issued September 14, 1999, approved the utility’s new offer of settlement and cancelled the hearing on the remanded issues.  The components of the settlement agreement required that in lieu of a surcharge the utility would be allowed to record a regulatory asset of $8.5 million and defer recovery until the next rate case.  A portion of the regulatory asset was to be allocated to each of the utility systems and amortized for up to 30 years.  As a part of the offer of settlement, FWSC agreed not to file for a rate increase for a period of three years, until June 30, 2002, excluding price indexes and pass through rate adjustments.  Under the terms of the settlement agreement, once the agreement became final agency action, the principles of administrative finality would apply.

FWSC subsequently acquired several other utility systems in Polk, Orange, and Volusia counties.  FWSC's Gibsonia Estates, Lake Gibson Estates, and Orange Hill/Sugar Creek water and wastewater systems became jurisdictional on May 14, 1996, when Polk County rescinded jurisdiction to the Commission.[2]  FWSC acquired the Tangerine water system in Orange County[3] and the Tomoka water system in Volusia County[4] by transfer applications in the year 2000. 

In 2002, FWSC attempted to sell all of its systems to Florida Water Services Authority (FWSA) without obtaining prior Commission approval or making the sale contingent upon the approval of the Commission, based on their assumption that FWSA was exempt as a governmental authority pursuant to 367.022(2) F.S.  The Commission ordered FWSC to file an application for approval of the proposed transfer of its assets as mandated by Section 367.071(1), Florida Statutes, and Rule 25-30.037(2), Florida Administrative Code.  FWSC filed its Application for Acknowledgment of Sale of Facilities to FWSA on February 7, 2003.  However, when it became evident that FWSC intended to go forward with the sale, with or without the Commission’s approval, the Commission filed an injunction with the Second Judicial Circuit Court to prohibit the sale.  The Circuit Court granted the injunction, and ordered that the injunction remain in effect until further order of the Court (Case No. 03 CA 0358).  FWSC filed an appeal of the Commission’s Order with the First District Court of Appeal.  On March 10, 2003, FWSC terminated its purchase agreement with FWSA, and on May 15, 2003, filed a Notice of Cancellation of the contract with the Commission for the sale of the utilities to FWSA. 

To date, the Commission has approved or acknowledged the sale of approximately 81 of FWSC’s 126 systems that were under Commission regulation to various governmental authorities.[5]  The sale of FWSC’s remaining systems in Brevard, Highlands, Lake, Orange, Pasco, Polk, Putnam, Seminole, Volusia, and Washington Counties is the subject of these dockets.

On April 20, 2004, FWSC entered into an asset purchase agreement with Aqua Utilities Florida, Inc. (Aqua or Buyer) for $13 million.  The actual closing took place on June 30, 2004, with the parties acknowledging that the sale is subject to Commission approval.

Aqua is a wholly owned subsidiary of Aqua Utilities, Inc., formerly AquaSource Utility, Inc.   Aqua Utilities, Inc., a Texas corporation, is a wholly owned subsidiary of Aqua America Inc., which is a subsidiary of DQE, a Pennsylvania based energy service company.  Aqua America Inc., directly or indirectly through subsidiaries, owns and operates water and wastewater systems in thirteen states.  In Florida, Aqua Utilities, Inc., furnishes regulated water service in Alachua, DeSoto, Marion, Highlands, Lake, Palm Beach, Pasco, Polk and Sumter Counties and regulated wastewater service in Alachua, DeSoto, Lake, Lee, Pasco, Polk and Sumter Counties.  Aqua Utilities, Inc.’s five regulated Florida subsidiaries are Arredondo Utility Company, Inc., Crystal River Utilities, Inc., Jasmine Lakes Utilities Corporation, Ocala Oaks and Aqua Utilities Florida, Inc.

            On August 24, 2004, FWSC and Aqua filed a joint application for transfer of FWSC’s land, facilities and certificates in Brevard, Highlands, Lake Orange, Pasco, Polk, Putnam, a portion of Seminole, Volusia, and Washington Counties.  FWSC and Aqua also filed a separate application in a second docket for the Chuluota systems in Seminole County.  FWSC and Aqua believed that the historical complaints regarding rates and the quality of service of the Chuluota systems might result in objections regarding the transfer.  Staff is filing a combined recommendation since the few objections received were withdrawn.

 

This recommendation addresses the transfer of water and wastewater land, facilities, and certificates from FWSC to Aqua.  The names of all the systems being transferred are listed in Attachment 1.  The Commission has jurisdiction pursuant to Section 367.071, Florida Statutes.

Discussion of Issues

Issue 1: 

 Should FWSC be ordered to show cause in writing within 21 days why it should not be fined for an apparent violation of Section 367.045, Florida Statutes?

Recommendation: 

 No.  FWSC should not be ordered to show cause.  Friendly Center, Palms Mobile Home Park, and Park Manor should be included in the territory granted to FWSC.  The utility should file revised tariff pages within thirty days of the Commission Order in this docket to reflect the territory descriptions in the name of FWSC so that the proper transition of the current FWSC tariffs can be made to Aqua.  Additionally, the new tariff filed by Aqua should include tariff pages with territory descriptions of these three systems.  (Walden, Brubaker)

Staff Analysis: 

 Friendly Center and Palms Mobile Home Park (Palms) water systems in Lake County, and Park Manor wastewater system in Putnam County are small systems that were acquired years ago by Southern States Utilities, but never included in Southern States’ or FWSC’s authorized service territory.  The certificate errors were discovered as a result of the staff review in this docket, to ensure that the systems and certificated territories FWSC is proposing to transfer were described accurately.  Staff found that these three systems were never recognized in Commission Orders as being granted to the utility.

                                         

In the case of the Park Manor system, the Commission approved the transfer of the water system to the utility, but the wastewater system was not addressed.  It appears that this was an oversight on the part of staff, since the cover letter in Docket 840395-WU,[6] the application for amendment of certificate in 1984, spoke to both the water and wastewater systems and referenced two filing fees, although the Order approving the transfer only referred to the water system.  Neither staff nor the utility caught this error in 1984.  Water and wastewater tariffs containing the same territory descriptions were filed and approved.  The tariff page for the Park Manor wastewater territory referred to the water system Order.

 

For the two systems in Lake County, Friendly Center and Palms, staff can find no record of applications to acquire these systems by the utility.  The systems were both acquired in 1977, when Friendly Center had about 10 customers and Palms had about 50 customers.

 

A review of Commission records in Docket No. 770897-WS, In re: Application of Southern States Utilities, Inc., for increase in rates for water and sewer service in Lake, Osceola and Seminole Counties, shows a list of systems and dates of acquisition.  Both Friendly Center and Palms are listed as being acquired in 1977.  In Commission Order 9648, in Docket No. 800525-WS, issued November 20, 1980, In re: Application of Southern States Utilities, Inc. for approval of service availability charges, uniform meter installation and tap fees, both Friendly Center and Palms are listed along with the other Southern States’ systems.  Tariff pages have been filed and approved in the utility’s water tariff back as far as 1980 for Friendly Center and Palms, although no Commission Order was ever cited for the granting of these territories in a certificate.

 

All three systems have been included in several rate cases, and long been recognized by the Commission as being part of the Southern States/Florida Water group of systems.  For Friendly Center and Palms, rates case dockets include Docket No. 770897-WS noted above, Docket No. 800363-WS[7], Docket No. 920199-WS[8],  Docket No. 930880-WS[9], and Docket No. 950495-WS[10].  Park Manor rate cases include Docket Nos. 920199-WS, 930880-WS, and 950495-WS, noted above.

 

Section 367.045(2), Florida Statutes, states that a utility may not extend its service outside the area described in its certificate of authorization until it has obtained an amended certificate of authorization from the Commission.  FWSC’s service of the Friendly Center, Palms Mobile Home Park, and Park Manor systems are in apparent violation of Section 367.045, Florida Statutes.

 

            Section 367.161(1), Florida Statutes, authorizes the Commission to assess a penalty of not more than $5,000 per day for each offense, if a utility is found to have knowingly refused to comply with, or to have willfully violated any provision of Chapter 367, Florida Statutes.  In serving outside of its certificated territory without obtaining an amended certificate of authorization, the utility’s act was “willful” in the sense intended by Section 367.161, Florida Statutes.  In Order No. 24306, issued April 1, 1991, in Docket No. 890216-TL, In Re: Investigation Into The Proper Application of Rule 25-14.003, Florida Administrative Code, Relating to Tax Savings Refund For 1988 and 1989 For GTE Florida, Inc., having found that the company had not intended to violate the rule, the Commission nevertheless found it appropriate to order the utility to show cause why it should not be fined, stating that “[i]n our view, ‘willful’ implies an intent to do an act, and this is distinct from an intent to violate a statute or rule.”

 

            Although FWSC’s service of these three systems is an apparent violation of Section 367.045(2), Florida Statutes, there are circumstances which mitigate the utility’s apparent violation.  Failure to include the Park Manor wastewater system in Southern States Utilities’ certificated area appears to have been a staff oversight in Docket No. 840395-WU.  It appears that FWSC has made a diligent search of the available records regarding the acquisition of the Friendly Center and Palms Mobile Home Park systems.  From those records, FWSC was able to determine the approximate dates that the systems were acquired, the names of the sellers, and the approximate size of the systems when they were acquired.  FWSC also believes that at the time these systems were acquired, both systems were considered exempt under the small-system exemption of Chapter 367.  In any event, these systems have been served by FWSC (formerly Southern States), and have been included in the utility’s territory description, dating back almost thirty years.  As referenced above, these systems, and their affected customers, have been fully included in subsequent rate cases.  Believing that the customers were located within its service area, FWSC has paid all the necessary regulatory assessment fees for these systems.

 

            Staff does not believe that the apparent violation of Section 367.045, Florida Statutes, rises in these circumstances to the level which warrants the initiation of a show cause proceeding.  Therefore, staff recommends that the Commission not order FWSC to show cause for failing to obtain an amended certificate of authorization prior to serving the Friendly Center, Palms Mobile Home Park, and Park Manor systems.

 

The utility has provided the staff with territory descriptions for each of these systems.  Staff recommends that the Commission include these systems as part of the FWSC systems, and amend Certificate No. 106-W in Lake County to include the Friendly Center and Palms Mobile Home Park water systems, and Certificate No. 284-S in Putnam County to include the Park Manor wastewater system.  Territory descriptions are attached to this recommendation as Attachment 2, with separate descriptions for each Friendly Center, Palms Mobile Home Park, and Park Manor.

 

The utility should file revised tariff pages within thirty days of the Commission Order in this docket to reflect the territory descriptions in the name of FWSC so that the proper transition of the current FWSC tariffs can be made to Aqua.  Additionally, the new tariff filed by Aqua should include tariff pages with territory descriptions of these three systems.

Issue 2: 

 Should the transfer of Florida Water Service Corporation's land, facilities, and certificates in Brevard, Highlands, Lake, Orange, Pasco, Polk, Putnam, Seminole, Volusia, and Washington Counties to Aqua Utilities Florida, Inc. (Aqua) be approved?

Recommendation: 

 Yes.  The transfer of FWSC's land, facilities, and certificates in Brevard, Highlands, Lake, Orange, Pasco, Polk, Putnam, Seminole, Volusia, and Washington Counties to Aqua is in the public interest and should be approved.  The transfer should be effective on the day of the Commission vote.  Aqua should be responsible for the annual reports and regulatory assessment fees (RAFs) for 2005 and the future.  In addition, the annual report should be organized alphabetically, by system names, as described below.  Attachment 3 lists the Orders granting territory to FWSC, which describes the territory subject to the transfer in these dockets.  If the Commission approves Issue 1, the three systems (Friendly Center, Palms Mobile Home Park, and Park Manor) should also be transferred to Aqua.  (Johnson, Brady, Clapp, Kaproth, Redemann, Rieger, Walden, Brubaker)

Staff Analysis: 

 On August 24, 2004, FWSC and Aqua jointly filed an application to transfer FWSC's land, facilities, and certificates in Brevard, Highlands, Lake, Orange, Pasco, Polk, Putnam, Seminole, Volusia, and Washington Counties to Aqua.  The closing on the transfer of the utility facilities took place on June 30, 2004, subject to approval by the Commission.

All of the filing requirements for the application were completed on October 22, 2004.  The application as filed 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.  Attachment 3 lists the Orders granting territory to FWSC which describes the territory subject to the transfer in these dockets.  Additionally, if the Commission approves Issue 1, the three systems (Friendly Center, Palms Mobile Home Park, and Park Manor) should also be transferred to Aqua.

Pursuant to Rule 25-30.030, Florida Administrative Code, the application contained the requisite proof of noticing.  There were three objections to the application received by the Commission.  However, all of the objections have either been resolved or withdrawn.  No other objections have been received and the time for filing such has expired.  According to the application, guaranteed revenue contracts, developer agreements, customer advances, debts of the utility or leases pertaining to the utility operations were disposed of in the asset purchase agreement at the time of the transfer.  Customer deposits, including any interest earned, accrued or due thereon, was electronically transferred to the buyer on the date of closing.  The developer agreements and the related books and records were also transferred to the buyer on the date of closing.  The buyer has provided copies of the recorded warranty deeds, leases, and easements in the filing as proof that it owns the land upon which the utility’s facilities are located.

The application contains a statement that the buyer has performed a reasonable investigation of the utility system and found the overall condition of the water and wastewater facilities to be in satisfactory condition and in general compliance with the requirements of the Florida Department of Environmental Protection (DEP).  Staff has contacted DEP and verified that there are no outstanding notices of violation.

According to the application, the transfer is in the public interest because the FWSC customers will continue to receive the same quality service to which they are accustomed.  With regard to the buyer's technical ability, Aqua is a wholly owned subsidiary of Aqua Utilities, Inc., which is a wholly owned subsidiary of Aqua America, the largest publicly traded water and wastewater utility based in the United States.  According to the application, at the present time, Aqua America provides safe and reliable water and wastewater service to approximately 800,000 customers in thirteen states.  Aqua and its affiliates currently own and operate 14 systems in Florida that provide service to approximately 5,828 water customers and 2,724 wastewater customers.  The application states that the FWSC systems will be owned by an experienced company and industry leader.  The utility is staffed with trained and licensed personnel.  According to the application, Aqua is committed to providing its customers with the highest quality of water and wastewater service.

With regard to the buyer's financial ability, a statement was provided that Aqua has the financial ability to ensure consistent compliance with DEP regulations.  Aqua Utilities, Inc., has the capability to provide investment capital at reasonable rates to Aqua.  The customers will receive the benefit of centralized management, accounting, billing, and data processing functions, resulting in economies of scale that would be extended to the customers.  Additionally, the application contains a statement that the buyer will provide funding to the utility as needed and fulfill the commitments, obligations, and representations of the sellers with regard to utility matters.

            FWSC and Aqua have no outstanding regulatory assessment fees, and no fines or refunds are owed.  FWSC paid the 2004 RAFs for January 1, 2004, through June 30, 2004.  Aqua paid the 2004 RAFs for July 1, through December 31, 2004, and the 2005 RAFS for January 1, 2005, through June 30, 2005.  FWSC and Aqua have no outstanding penalties and interest.  FWSC filed the 2004 annual report for January 1, 2004, through June 30, 2004, and Aqua filed the 2004 annual report for July 1, 2004, through December 31, 2004.  For efficiency purposes in locating information in the annual report, the utility should organize the water and wastewater system information alphabetically.  (See Attachment 1)

 

Based on the above, staff recommends that the transfer of FWSC's land, facilities, and certificates in Brevard, Highlands, Lake Orange, Pasco, Polk, Putnam, Seminole, Volusia, and Washington Counties to Aqua is in the public interest and should be approved.  The transfer should be effective on the day of the Commission vote.  Aqua should be responsible for the annual reports and RAFs for 2005 and the future.  In addition, the annual report should be organized alphabetically, by system names, as described above.  The territory being transferred is found on Attachment 3, a listing of orders granting territory to FWSC.  If the Commission approves Issue 1, the three systems (Friendly Center, Palms Mobile Home Park, and Park Manor) should also be transferred to Aqua.  (See Attachment 2)

Issue 3: 

 Should the remaining portion of Florida Water Services Corporation’s regulatory asset be transferred to Aqua Utilities Florida, Inc.?

 

Recommendation:   Staff recommends that the portion of FWSC’s regulatory asset related to the systems sold to Aqua, $489,535 and $174,657 for water and wastewater, respectively, should be included in the assets transferred to Aqua.  Staff also recommends that the regulatory asset should be amortized over 10 years beginning on January 1, 2007.  (Clapp, Willis, Brubaker)

 

Staff Analysis:   FWSC was granted a regulatory asset of $8.5 million as part of the Modified Offer of Settlement approved by Order No. PSC-99-1794-FOF-WS (settlement order).  The settlement was offered subsequent to an appeal of Order No. PSC-96-1320-FOF-WS, in which the First District Court of Appeal affirmed the capband rate structure, reversed the used and useful adjustment for reuse, reversed the equity adjustment, and reversed errors regarding canceling prior approved allowance for funds prudently invested (AFPI) and the use of annual average daily flows (AADF) in the numerator of the used and useful equation, and remanded AADF and the use of lot count method in determining used and useful percentages.  

In Order No. PSC-99-1794-FOF-WS, the Commission approved the regulatory asset to avoid customer surcharges, and to allow the utility to recover revenues associated with the Commission adjustments that were reversed and remanded by the DCA.  The Order included a provision requiring that the utility not file a rate case prior to June 28, 2002.  Also, no amortization of the regulatory asset would occur until the utility’s next rate case, and amortization would then be established for a period of up to 30 years.

The regulatory asset was to be allocated among the 150 systems owned by the utility at the time based on the proportion of equivalent residential connections (ERCs) as of December 31, 1996.  The order specified that if a system is sold or if a county rescinds Commission jurisdiction, then the portion of the regulatory asset associated with the system sold or those systems in the non-jurisdictional county or counties would remain with that system or systems.

The majority of the systems were subsequently sold.  Schedule 1 shows the remaining systems and the portion of the regulatory asset allocated to each system.  FWSC takes the position that the remaining regulatory asset, $664,192 should be included in the rate base transferred to Aqua.  OPC takes the position that the regulatory asset should not be transferred to Aqua.

FWSC’s Position.  FWSC takes the position that in approving FWSC’s Modified Offer of Settlement by Order No. PSC-99-1794-FOF-WS, the Commission has previously ruled on this issue.  The Commission approved the settlement offer in lieu of imposing surcharges.  According to the Order, “If a system is sold … then the portion of the regulatory asset associated with the system sold or those systems in the non-jurisdictional county or counties shall remain with that system or systems.”

OPC’s Position.  OPC takes the position that the regulatory asset should not be transferred to Aqua to be recovered in future rate cases filed by Aqua.  OPC believes the Order only contemplates recovery of this regulatory asset by FWSC, not by any potential purchaser of the individual systems.  OPC’s position is that the Commission allocated the regulatory asset among the systems to protect the remaining customers of unsold FWSC systems from bearing the costs of the amortization of the regulatory asset associated with the sold systems.  Order No. PSC-99-1794-FOF-WS does not contemplate or authorize the buyers of FWSC systems to recover surcharge revenues forgone by FWSC in the last rate case.  The Order was silent on what action would be taken if all assets of FWSC were sold. 

OPC agrees that the order states that when a system is sold the regulatory asset goes with that system.  However, OPC contends that when the settlement was proposed, the Commission was not faced with the sale of all the FWSC assets.  Regardless, allowing a new owner to recover the lost profits of a prior owner is bad public policy.  There are many items which belong to a particular system being sold that do not transfer to the new owner.  One particular example is the prior owner’s equity in the assets.  The level of equity and debt financing to be reflected on the ongoing utility’s books will be based on the buyer’s management decisions.  Other examples of assets that do not transfer include an acquisition adjustment from the prior owner’s purchase of the assets or deferred income taxes relative to the held assets (for example Financial Accounting Standard Board (FASB) 142, Goodwill.)  In addition, the purchase agreement contained no specific mention of this intangible asset.  If recovery of this asset were important to the buyer, then OPC believes that this asset would have been specifically identified in the purchase agreement. 

Further, OPC believes that continuing the accrual of this regulatory asset without any amortization violates generally accepted accounting principles (GAAP).  It has been over six years since the Commission approved the regulatory asset and amortization has not begun because FWSC has not filed a subsequent rate case.  Such an indefinite time frame for recovery does not meet the requirements of FASB 71, that revenue recognition in rates is probable.  FASB 71 also states that non-amortized regulatory assets have to be measured each year for impairment.  If the asset is deemed impaired it has to be written off in the year the impairment is determined.  OPC believes that this asset became impaired several years ago and should have already been written off by FWSC to be in compliance with GAAP.  OPC does not believe that Order No. PSC-99-1794-FOF-WS contemplates violation of any accounting principles.  Regardless, Aqua should not purchase an asset with some indefinite time frame for inclusion in rates that OPC believes is impaired.  Therefore, OPC believes that the regulatory asset should be removed from rate base for each of the systems purchased by Aqua.

Analysis.  Order No. PSC-99-1794-FOF-WS ended many years of litigation associated with the last FWSC rate case docket.  In fact, it was estimated in the Order that if remand hearings went forward and a subsequent appeal were filed, the surcharge being considered at that time could grow to approximately $13.5 million through August 1, 2001.  The Commission further noted the broader ramifications of the Modified Offer of Settlement, which included FWSC’s proposal to accept only about half of the revenues to which it could potentially be entitled if the record were reopened and FWSC’s agreement to not file for a rate increase prior to June 28, 2002.  The Commission found that these two provisions alone appeared to be of great benefit to all customers.  Further, the Commission found that FWSC’s offer to book the surcharges as a regulatory asset was fair, just, reasonable, and not unduly discriminatory.

OPC states that the settlement order only contemplates recovery of the regulatory asset by FWSC, not a system purchaser.  However, this regulatory asset is a vehicle to allow a utility to recover costs incurred at a later time, a delayed rate increase.  Normally, a utility would request a rate increase to recover costs incurred.  The settlement establishing this regulatory asset resulted in a great savings to the FWSC customers.  The Commission specifically included in the settlement order that a proportionate share of the regulatory asset would remain with a system that is sold.  This share represents a possible rate increase, depending on value and amortization, for the customers of the system.

OPC is correct that the Commission Order approving the regulatory asset did not specifically contemplate FWSC transferring all of its systems.  However, the Order contains language that if the settlement Order became final, then the principles of administrative finality are applicable.

Staff agrees with OPC that, consistent with FASB 142, intangible assets such as acquisition adjustments and deferred taxes should not be transferred.  These are assets that the Commission has consistently found should not be included in rate base when a system is sold.  However, the regulatory asset approved in Order No. PSC-99-1794-FOF-WS was divided among the 160 rate case systems with the proviso that the regulatory asset would be transferred with each system.  Therefore, the Commission explicitly made an exception for this regulatory asset.

With respect to OPC’s argument that FASB 71 requires that without a method of recovery, the asset is impaired and should, therefore, be written off, staff would point out FWSC was authorized to begin recovery in its next rate case using an amortization period of up to 30 years.  Staff recommends a ten year period of amortization should be implemented by Aqua on January 1, 2007.  This will afford Aqua an opportunity for full cost recovery of the regulatory asset. This will afford Aqua an opportunity for full cost recovery of the regulatory asset.  Schedule 1 contains a breakdown of the regulatory asset among the remaining systems with an estimated billing impact per customer if amortized over 10 years.

Based upon the above staff recommends that the portion of FWSC’s regulatory asset related to the systems sold to Aqua, $489,535 and $174,657 for water and wastewater, respectively, should be included in the assets transferred to Aqua.  Staff also recommends that the regulatory asset should be amortized over 10 years beginning on January 1, 2007.

Issue 4:   Should the debit balances in accumulated depreciation resulting from the unamortized losses associated with the 1999 physical inventory be included in rate base for transfer purposes?

Recommendation: 

 No.  The debit balances in accumulated depreciation should be recorded as fully amortized losses, resulting in a reduction to rate base of $219,355 for water and $88,819 for wastewater. (Brady)

 

Staff Analysis:  Consistent with the recommendations of Commission staff in its management audit of FWSC’s predecessor, Southern States Utilities, Inc., FWSC hired independent consultants in 1998 to conduct a company-wide inventory of utility plant in service (UPIS) as of December 31, 1997, which it called the Fixed Asset Study (study).  According to FWSC, because of multiple acquisitions and the variety of systems acquired by FWSC in the years preceding the study, there was no unitized fixed asset system in place for the company as a whole.  The study was intended to establish unitized continuing property records, improve internal accounting controls, and provide retirement dispersion history necessary to conform utility records to the requirements of the uniform system of accounts and Commission orders.   As a result of the findings in that study, FWSC made numerous accounting entries from 1998 through 2001 to correct, reclassify, and retire assets.  Since the majority of the entries were made in 1999, this activity is referred to as the 1999 physical inventory.

 

For retired assets, UPIS was credited and accumulated depreciation was debited, creating numerous debit balances in accumulated depreciation.  Some of these debit balances were subsequently removed from accumulated depreciation, transferred to extraordinary loss Account Nos. 182.339 and 182.389, Other Plant and Miscellaneous Equipment, and amortized by FWSC.  In 2003, FWSC transferred the unamortized balance in these extraordinary loss accounts to accumulated depreciation Account Nos. 108.339 and 108.389.  The affect of this transfer was to create debit balances in accumulated depreciation of $219,355 for water and $88,819 for wastewater, with no offsetting plant.

 

At an informal meeting held on September 21, 2005, with representatives of FWSC, Aqua, and OPC, staff asked the parties to address the appropriate treatment of debit balances in accumulated depreciation with little or no offsetting plant which are the subject of this issue, as well as Issues 5 and 6.  The following is a summary of FWSC’s and OPC’s comments as well as staff’s analysis of the comments.

 

FWSC’s Position.  FWSC disagrees with staff isolating a few accounts with debit accumulated depreciation balances and suggesting these balances are not consistent with basic regulatory and accounting principles.   FWSC does not believe the Commission should evaluate debit balances in a vacuum nor should it make one-sided accounting adjustments to eliminate a so-called depletion problem in depreciation reserve accounts.  FWSC further argues that it was evaluated in its last two rate cases on a company-wide basis.  Therefore, debit accumulated depreciation balances should be addressed as part of future rate proceedings on a company-wide basis when detailed property records are available.  FWSC also notes that, as of December 2002, it had approximately $216 million in accumulated depreciation reserves for all of FWSC’s systems.  As such, a total debit accumulated depreciation balance of $880,000 (the amount at issue in Issues 5 and 6) is de minimus and would not have been addressed or adjusted by the Commission.  Also, since no such adjustments to individual accounts were made by the Commission in FWSC’s rate cases, the utility believes no such adjustments should be made in the transfer.

 

With regard to the 1999 physical inventory, FWSC believes that it followed the methodology prescribed by the uniform system of accounts and standard accounting practices for retirements.  It also used the depreciation rates ordered in Docket No. 950495-WS.  FWSC explains that debit balances in accumulated reserve accounts arise when the actual life of plant assets is shorter than the average service lives.  Since the uniform service lives are based on groups of assets, some assets will be retired earlier and some will be retired later than the average life.

 

FWSC also responded to staff’s observation that FWSC’s rates included depreciation on retired plant that may not have been in existence at the time of its last rate case.  While FWSC agreed, it noted that the total amount of approximately $24,000 per year, is de minimus.  It is also substantially offset and outweighed by the fact that FWSC earned what it referred to as a meager average overall return of 1.3% from 1997 through 2003 while investing an additional $8.6 million in plant for the systems at issue with no return on the investment or additional O&M expenses factored into rates.

 

FWSC concluded that the result of staff’s proposed adjustments would chill any incentive for utilities to conduct inventories to true-up physical assets to books.  FWSC notes that the adjustments in its 1999 physical inventory were due, in large part, to unrecorded retirement transactions prior to acquisition of the systems by FWSC and the establishment of appropriate accounting and reporting procedures.  Also, FWSC believes the adjustments as a result of the physical inventory have no net effect on rate base because the retirement entries were correctly and appropriately made by a credit to plant and a debit to reserve for accumulated depreciation.   As such they were equal and offsetting adjustments.  Finally, FWSC is not aware of any prior Commission precedent supporting staff’s proposed adjustments to eliminate debit accumulated depreciation reserves.

 

OPC’s Position.  OPC believes that, when it finalized its 1999 physical inventory, FWSC should have reviewed its books for inappropriate balances in accumulated depreciation as a result of retirement entries and investigated debit balances where no plant existed.  OPC states that such debit balances are often created by retirements without original cost documentation or plant recorded in a different account from the retirement.  Other times, it is the result of a retirement before the end of depreciable life or removal cost in excess of plant.  Regardless, once the cause is determined, OPC believes it is the responsibility of utility management to either write off the debit balance or request Commission approval for some type of recovery mechanism consistent with Accounting Instruction 27-H.  OPC believes that waiting for the next rate case, or transfer in this case, is improper.  OPC also notes that, if a utility finds a class of assets retiring faster than the designated useful life, it can petition the Commission for a shorter life pursuant to Rule 25-30.140, Florida Administrative Code.

 

In addition, OPC believes that FWSC’s argument that the utility was evaluated on a total company basis in its last rate case, does not hold merit.  Instead, the final order set rate base by system, not in total.  Therefore, OPC argues that FWSC suggestion that debit balances from one system can be offset by credit balances in another system is also without merit and, absent Commission permission, in violation of NARUC and financial accounting standards, specifically FASB Statement 71.

 

Analysis.  In general, FWSC’s and OPC’s comments on the treatment of normal retirements are both correct.  FWSC’s comments focus on Accounting Instruction 27, Paragraph B(2), of the National Association of Regulatory Commissioners (NARUC) Uniform Systems of Accounts (USOA) for Class A Water and Wastewater Utilities issued in 1996, at page 33:

 

If the retirement unit is of a depreciable class, the book cost of the unit retired and credited to utility plant shall be charged to the accumulated depreciation applicable to such property.  The cost of removal and the salvage shall be charged or credited, as appropriate, to such depreciation account.

 

OPC’s comments focus Paragraph H of the USOA, at page 34:

 

In some instances the unexpected early retirement of a major unit of property, which would eliminate or seriously deplete the existing depreciation reserve, may require accounting treatment which differs from that described in paragraph B above.   In such instances the Commission may authorize or order the loss on the retirement (less any tax savings) to be charged to income in the current year or transferred to account 186 – Miscellaneous Deferred Debits, and amortized in future periods.  Such accounting treatment shall be used only when specifically authorized or directed by the Commission.  (Emphasis added.)

 

For retirements under normal (FASB) accounting principles, plant is removed by credit and the associated accumulated depreciation reserve is removed by debit, leaving zero balances in both accounts.  Under the above instructions in the USOA, plant is also reduced to zero by credit, but accumulated depreciation is debited by the original cost of the retired asset.  If the retired asset was not fully depreciated, then this treatment will create a debit in accumulated depreciation in the amount of the undepreciated plant.  The purpose of this treatment is to allow regulated utilities the opportunity to earn a full return on prudent investment in plant.  However, until removed by depreciation, a debit in accumulated depreciation increases rate base.  In cases where there is no offsetting plant against which to reduce debits in accumulated depreciation, the utility will earn a return on investment for the retired plant indefinitely.  This is the reason Instruction 27-H specifies that the Commission may authorize or order that the loss on the retirement be charged to income in the current year or transferred to Account 186, Miscellaneous Deferred Debits, and amortized in future periods.

 

With regard to the issue of whether accumulated depreciation for FWSC should be evaluated on a company-wide basis, staff agrees with OPC.  While groups of systems with similar cost were banded together when final rates were last established, each system was first analyzed on a stand-alone system basis.  That is also how staff has evaluated rate base for transfer purposes.  With regard to the depreciation rates ordered in Docket No. 950495-WS, the rates are consistent with the average service lives in Rule 25-30.140, Florida Administrative Code.  As such, they are shared by all utilities of a size similar to FWSC.  FWSC has also argued that the $880,000 in 2003 debit accumulated depreciation balances were too de minimus to have been considered or addressed in FWSC’s previous rate proceeding and, therefore, should not now be considered.  However, the total amount of debits to accumulated depreciation in Issues 4, 5 and 6 is approximately $1,200,000, not $880,000.  Also, staff is not considering the debits in relation to the 2002 rate base when there was $216 million in accumulated depreciation; it is considering the debits with regard to the 2004 transfer in which total rate base has been substantially reduced to $16 million due to prior transfers to governmental entities.  In addition, the debits were a result of physical inventories and interconnections subsequent to the last rate case.  As such, the debit balances would not have existed for the Commission to have addressed in the last rate case.

 

Staff disagrees with FWSC’s statement that detailed property records are only available for rate proceedings.  Utilities are required by the USOA to maintain detailed continuing property records.  As such, all detailed property records should have been made available by FWSC for the transfer audit.  The existence of the 1999 and 2003 (see Issue 5) physical inventories should also have been disclosed at the beginning of the audit.  A report on the 1999 physical inventory was not made available until the end of the audit and was not sufficiently detailed to fully address audit questions.  The existence of the 2003 physical inventory was not known until after the audit was concluded.

 

Finally, staff is not persuaded by FWSC’s arguments that adjustments to debit accumulated depreciation balances would chill incentives for utilities to conduct physical inventories to true-up physical assets to books and that the majority of the retirements were due to unrecorded transactions prior to acquisition by FWSC.  Utilities have both the opportunity to petition the Commission to include an amortization expense on retirements (deferred debits) in rates,[11] as well as the responsibility to conduct adequate due diligence prior to acquisitions, maintain detailed continuing property records, and correctly record retirements on a timely basis.  Also, as OPC noted, the utility can petition the Commission for a shorter depreciation life pursuant to Rule 25-30.140, Florida Administrative Code, if it finds a class of assets retiring faster than the designated useful life.

 

While staff was provided a copy of the journal entries and general ledger detail for the 1999 physical inventory, FWSC was unable to provide the complete fixed asset study in support of the retirements.  In addition, FWSC did not address the reason it transferred the unamortized balance, which had been previously written off to extraordinary loss accounts (182.339 and 182.389), back to accumulated depreciation in 2003.  The only comment offered about this transaction is found in Footnote 2 to FWSC’s May 23, 2005, response to the audit which states:

 

The audit report does note that some original entries made to the Extraordinary Abandonment account were erroneous.  These entries were ultimately corrected by Florida Water in 2003 after they were brought to the Company’s attention as a result of comments from Florida Water’s external auditors.  Florida Water agreed with the comments and the corrections were appropriately made and did not have any net impact upon rate base.

 

Use of Account 182, Extraordinary Property Losses, requires Commission approval that an extraordinary loss has occurred and, if so, a determination as to the appropriate amount of the loss to be included in rate base.  The Commission only makes such determinations when establishing rate base, as is the case in this proceeding.  The 1996 NARUC USOA for Class A Water and Wastewater Utilities specifies on Page 75 what is to be included in Account No. 182, when its use is authorized or directed by the Commission, and how it is to be treated:

 

When authorized or directed by the Commission, this account shall include extraordinary losses, net of income taxes, on property abandoned or otherwise retired from service which are not provided for by accumulated depreciation or amortization and which could not reasonably have been foreseen and provided for, and extraordinary losses, such as unforeseen damages to property, which could not reasonably have been anticipated and which are not covered by insurance or other provisions.  The entire cost, less net salvage, of depreciable property retired shall be charged to accumulated depreciation.  If all, or a portion, of the loss is to be included in this account, accumulated depreciation shall then be credited and this account charge with the amount properly chargeable hereto.  (Emphasis added.)

 

Staff believes that FWSC was attempting to follow the USOA in 1999 when it transferred debit balances in accumulated depreciation to a loss account and began amortization.  Although FWSC should have petitioned the Commission for appropriate treatment at the time of the loss, staff recommends that the Commission make a determination in this docket as to the appropriate balance to be transferred to Aqua.  Specifically, the Commission should determine whether to leave the unamortized balance in accumulated depreciation or reclassify it as a loss.  If a loss is recorded, then a determination should be made as to the amount to be amortized. 

 

As noted, the FWSC 2003 transfer from extraordinary loss accounts (182.339 and 182.389) to accumulated depreciation accounts (108.339 and 108.389) created a net debit balance in accumulated depreciation of $219,174 for water and $88,819 for wastewater, with no offsetting plant.  Since this is precisely the situation which the accounting instruction seeks to avoid, and for which the loss was originally recorded, staff recommends the debit balance in accumulated depreciation be reclassified as a loss and amortized.  The Commission has previously determined that the amortization period begins at the time the asset is retired.[12]  Staff estimated the original loss, recalculated the amortization period pursuant to Rule 25-30.344(9), Florida Administrative Code, and determined that the loss would have been fully amortized as of June 30, 2004.[13]  Therefore, there is no remaining loss to be included in rate base for transfer purposes.

Based upon the above, staff recommends that the debit balances in accumulated depreciation resulting from the unamortized losses associated with the 1999 physical inventory be recorded as a fully amortized, resulting in a reduction to rate base of $219,355 for water and $88,819 for wastewater.  See Adjustment 18 in Schedule 3.

Issue 5:   Should the retirements from the 2003 physical inventory be included in rate base for transfer purposes?

Recommendation: 

 No.  The $218,238 in retirements as a result of the 2003 physical inventory should be removed from rate base for transfer purposes as assets not transferred to Aqua.  (Brady)

Staff Analysis:

 Subsequent to the informal meeting with parties on September 21, 2005, staff discovered that FWSC had conducted a physical inventory in 2003 prior to the beginning of the sale of its systems in December of 2003.  As a result of this inventory, FWSC booked $364,500 in retirements by a credit to UPIS and a debit to accumulated depreciation.  This left a number of accounts in accumulated depreciation with debit balances and little or no offsetting plant.  If this issue was just the matter of debit accumulated depreciation balances created by normal retirements which eliminate or seriously deplete existing depreciation reserves, staff would recommend that the debit balances be removed from rate base by transfer to a miscellaneous deferred debit account.  Aqua could then request that an amortization expense be included in a future rate proceeding.  Instead, it appears that a majority of the retirements may be assets not included in the sale to Aqua and, as such, should be removed from rate base.

 

As discussed in detail in Issue 4, FWSC had conducted an extensive, company-wide physical inventory in 1999 to reconcile plant in service to books and to develop a continuing property record.  The last entries as a result of the inventory were entered in 2001.  As such, staff believes there would be no need for another physical inventory in 2003 other than to provide an inventory to fulfill the due diligence requirement in anticipation of the sale..  Staff would note that there may have been a limited number of normal retirements coincidentally occurring in the same period as the 2003 physical inventory.  However, when staff advised the utility that it believed the 2003 physical inventory related to assets not intended to be transferred, the utility did not provide a response. 

 

The focus of a transfer audit to is to determine the net book value of the assets sold.  Assets not sold by FWSC were removed from rate base by a credit to plant for the full amount of plant and a debit to accumulated depreciation in the amount of any existing depreciation plant leaving zero balances in both accounts.  By treating the 2003 physical inventory as normal retirements, FWSC created a debit to accumulated depreciation in the amount of any undepreciated plant, which it proposes to transfer to Aqua.  Staff recommends that this amount be removed from rate base by the following methodology.

 

For the 2003 physical inventory retirements which left zero plant balances, staff recommends removing the remaining debit balances in accumulated depreciation, leaving zero accumulated depreciation balances.  See Adjustment Nos. 26 and 27 on Schedule 3.  For the 2003 physical inventory retirements which had plant remaining in the UPIS accounts, staff first determined how much each affected account had been depreciated as of January 1, 2003.  The undepreciated percentage was then applied to the retired assets and the resulting amount removed by credit.  See Adjustment No. 28 on Schedule 3.  The total amount of staff’s recommended credits to accumulated depreciation in Adjustments 26, 27, and 28 is $218,238.

Based upon the above, staff recommends that $218,238 in retirements as a result of the 2003 physical inventory be removed from rate base for transfer purposes as assets not transferred to Aqua.  See Adjustment 26, 27 and 28 on Schedule 3.

 

Issue 6:  Should the property losses associated with the abandonments of the Lake Gibson Estates, Zephyr Shores, and Beecher’s Point wastewater plants, the St. Johns Highlands water plant, and the disconnection of the Lake Gibson Estates wastewater septic tanks be included as extraordinary property losses in rate base for transfer purposes? 

Recommendation: 

  Yes, an extraordinary property loss of $-0-, $-0-, and $41,094, respectively, for the Lake Gibson Estates, Zephyr Shores, and Beecher’s Point wastewater plant abandonments, $11,503 for the St. Johns Highlands water plant abandonment, and $159,005 for the Lake Gibson Estates wastewater septic tank disconnections, should be included in rate base for transfer purposes.  (Brady)        

 

Staff Analysis: 

  The Lake Gibson Estates and Zephyr Shores wastewater interconnections occurred in 2001.  The Beecher’s Point wastewater interconnection and the St. Johns Highlands water interconnection occurred in 2003, along with an additional loss related to the Lake Gibson Estates wastewater interconnection.  Since FWSC booked these losses differently, staff’s analysis first addresses the 2001 interconnections and then the 2003 interconnections.

 

2001 Interconnections.  In 2001, FWSC recorded a loss for the dismantlements of the Lake Gibson Estates and Zephyr Shores wastewater plants in Account 182, Extraordinary Property Losses.  The dismantlements were the result of interconnections to county facilities.  FWSC credited UPIS and debited accumulated depreciation for the cost of the retired plant and removal, but did not record any salvage.  The accumulated depreciation accounts that had resulting debit balances were, for the most part, charged to Account 182 and amortized on an 18-year basis.  The NARUC USOA accounting instructions for the use of Account 182 are as follows:

 

When authorized or directed by the Commission, this account shall include extraordinary losses, net of income taxes, on property abandoned or otherwise retired from service which are not provided for by accumulated depreciation or amortization and which could not reasonably have been foreseen and provided for, and extraordinary losses, such as unforeseen damages to property, which could not reasonably have been anticipated and which are not covered by insurance or other provisions.  The entire cost, less net salvage, of depreciable property retired shall be charged to accumulated depreciation.  If all, or a portion, of the loss is to be included in this account, accumulated depreciation shall then be credited and this account charged with the amount properly chargeable hereto. 

 

As noted in Issue 4, the Commission only authorizes or directs the use of this account when considering rate base, as is the case in this proceeding.  Clearly Account 182 was intended for booking prudent, extraordinary losses due to forced abandonments, such as interconnections.  Since there will be no further plant added after the interconnection, the debit to accumulated depreciation created by the retirement will never be reduced by offsetting plant.  As such, the utility will earn a return on its investment in the abandoned plant indefinitely.  Therefore, the above accounting instruction provides for the removal of the debit to accumulated depreciation by a credit to a loss account.

 

Based upon discussions with DEP, staff believes that these two abandonments were necessary and prudent.  The facilities were at, or near, capacity and unable to expand due to effluent disposal permitting issues.  As such, staff recommends that a loss in Account 182 should be included in rate base for transfer purposes by a credit to accumulated depreciation.  The loss should be net of salvage value, amortization, and any loss FWSC may have claimed for income tax purposes.

 

Staff’s calculation of the loss at the time of the transfer is shown below.  The amortization period is established pursuant to Rule 25-30.433(9), Florida Administrative Code.  With regard to the tax loss, staff has assumed that FWSC was writing off the net retirement over a five-year period.  Because the interconnection and resulting plant abandonments occurred in 2001, staff assumed 2.5 years of amortization and tax loss.  The resulting adjustments to rate base for Zephyr Shores and Lake Gibson Estate are shown as Adjustment 22, on Schedule 3.

 

                                                Lake Gibson Estates         Zephyr Shores

 

Plant                                                                $ 518,055                    $   87,673           

Acc. Dep.                                                        (241,542)                       37,421       

Net Retirement                                                   276,513                       125,094

 

Cost of Removal                                                102,852                         51,150

Salvage Value                                                  (103,111)                    (  72,933)

 

2.5 year Tax Loss                                              (138,257)                    (  62,547)

2.5 year Amortization                                        (138,285)                    (  44,343)

 

Net Loss as of 06/30/2004                                      - 0 -                              - 0 -   

 

Depreciation Expense                                          27,829                           5,303

ROI (9.94 * Net Retirement)                                27,485                        12,434

Annual Amortization                                            55,314                         17,737

 

2003 Interconnections.  In 2003, FWSC recorded the dismantlement of the Beecher’s Point wastewater plant and the St. Johns Highlands water plant.  The dismantlements were due to Beecher’s Point interconnection to the Town of Welaka and St. Johns Highlands interconnection to Hermits Cove.  In 2003, FWSC also recorded the disconnection of septic tanks and drainfield for Lake Gibson Estates wastewater system.  The septic tanks, which FWSC had installed the previous year, were an additional loss related to the earlier 2001 interconnection.  The Lake Gibson Estates wastewater system was under an effluent moratorium at the time of the interconnection.  To meet customer obligations until all lines were accepted by the county, FWSC obtained a temporary permit to install septic tanks.  The septic tanks had to be disconnected when the lines were connected to the county’s system.

 

The total amount of $515,064 in abandoned 2003 plant was booked as normal retirements by credit to UPIS and debit to accumulated depreciation.  At the September 21, 2005, meeting of parties, staff indicated its intention to recommend that the 2003 interconnections be treated as extraordinary abandonments instead of normal retirements.  The effect would be to remove the debits to accumulated depreciation with no offsetting plant but allow the utility to recover an amortization expense on the loss in a rate proceeding.  The comments by the parties, which are summarized in Issue 4, did not specifically address whether the 2003 abandonments should be treated as normal retirements or extraordinary losses.

 

As explained in Issue 4, in instances where the early retirement of a major unit of property would eliminate or seriously deplete the existing depreciation reserve, the Commission may authorize or order the loss on the retirement (less any tax savings) to be charged to income in the current year or transferred to account 186, Miscellaneous Deferred Debits, and amortized in future years.  However, when the early retirement is the result of a forced retirement, the Commission may authorize or direct the use of Account 182, Extraordinary Property Losses.

 

Consistent with its recommendation on the 2001 interconnections, above, and based upon additional discussions with DEP, staff believes that the 2003 abandonments were necessary and prudent.  The systems were at or near capacity and it was more cost-effective to interconnect than to attempt to expand.  And, as noted above, the septic tanks at Lake Gibson Estates were installed under a temporary permit.  Because these losses were prudent, staff recommends that a loss in Account 182 should be included in rate base for transfer purposes by a credit to accumulated depreciation.  Staff has determined that there would have been little or no salvage for the 2003 interconnections.  Therefore, the loss should be net amortization and any loss FWSC may have claimed for income tax purposes.  In addition, staff recommends that the amortization period for the account be recalculated pursuant to Rule 25-30.433(9), Florida Administrative Code.

 

The resulting adjustments to rate base for Beecher’s Point, Lake Gibson Estates, and St. Johns Highlands are shown as Adjustment 22, on Schedule 3.

 

                                    Beecher’s Point    Lake Gibson Estates     St. Johns Highlands

Plant                                             $ 124,255               $ 351,760                         $ 39,098          

Acc. Dep.                                       ( 37,958)              (     9,878)                       (14,494)   

Net Retirement                                 86,297                   341,882                            24,604

 

1.5 year Amortization                     ( 19,314)                ( 80,312)                   (        5,720)

1.5 year Tax Loss                           ( 25,889)                (102,565)                  (        7,381)

 

Net Loss as of 06/30/2004               41,094                    159,005                           11,503

 

Depreciation Expense                        4,298                     19,558                              1,367

ROI (9.94 * Net Retirement)              8,578                     33,983                             2,446

Annual Amortization                        12,876                     53,541                              3,813

 

            Based upon the above, staff recommends a net extraordinary property loss of $-0-, $-0-, and $41,094, respectively, for the Lake Gibson Estates, Zephyr Shores, and Beecher’s Point wastewater interconnections, $11,503 for the St. Johns Highlands water interconnection, and $159,005 for the Lake Gibson Estates wastewater septic tank disconnections, be included in rate base for transfer purposes.

 

Issue 7: 

 What is the rate base of the Florida Water Services Corporation at the time of transfer?

 

Recommendation:  The staff recommended rate base for transfer purposes is $9,847,462 and $5,894,452 for water and wastewater, respectively, as of June 30, 2004.  Aqua should be required to provide a statement 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 rate base have been made to reflect the approved balances as of June 30, 2004.  (Clapp, Brady, Johnson)

 

Staff Analysis:   FWSC submitted a proposed book value of $17,798,043 for the combined value of the systems to be transferred to Aqua.  Rate base was last set for most of FWSC as of December 31, 1996.[14]  Polk County became jurisdictional in 1997 and Gibsonia Estates, Lake Gibson Estates, and Orange Hill/Sugar Creek subsequently received grandfather certificates.[15] FWSC acquired two additional systems in 2000, Tangerine and Tomoka.[16]  As discussed in Issue 4, FWSC had a Fixed Asset Study performed in 1998 based upon plant as of December 31, 1997.  Many adjusting entries, which resulted in reducing plant, land, and depreciation, were posted primarily in 1999.  FWSC was unable to provide detailed information regarding the findings of the original cost study.  General agreement was reached with representatives of FWSC, Aqua, Office of the Public Counsel, and staff regarding the proposed adjustments and balances with the exception of regulatory assets (Issue 3), Physical Inventory (Issues 4 and 5), and extraordinary abandonments (Issue 6).

The actual transfer of FWSC’s assets to Aqua occurred on June 30, 2004.  Therefore, staff recommends that rate base be established for transfer purposes as of June 30, 2004.  Schedule 2 contains detailed recommended rate base schedules and detailed plant and depreciation balances by subaccount for each system transferred through this docket as of June 30, 2004.  Schedule 3 contains the detail of staff’s adjustments recommended for each transferred system.   

Books and Records.  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 Aqua should be required to provide a statement, 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 rate base have been made to reflect the approved balances as of June 30, 2004.

Utility-Plant-in-Service (UPIS).  The UPIS balances per FWSC’s general ledgers as of June 30, 2004, are $15,681,984, $10,638,986, and $130,581 for water, wastewater, and general plant, respectively.  Staff reviewed invoices, general ledger entries and other documents to support plant additions and retirements from December 31, 1996, through June 30, 2004.    Staff recommends that adjustments be made for new, retired, and incorrectly booked UPIS of $15,323, $(248,123), and $(130,581) for water, wastewater, and general plant, respectively, for a total adjustment of $(363,381).  These adjustments were included in the staff audit and neither FWSC nor OPC provided comments regarding the adjustments.  Therefore, staff recommends that UPIS balances of $15,697,307 $10,390,863, and $0 for water, wastewater, and general plant, respectively, should be approved as of June 30, 2004.  (See Adj. Nos. 1, 2, 3, 4, 5, 6, 7, 8, 12, 14, 15, 24, 25, 33)

Land.  FWSC’s balances for land as of June 30, 2004, are $232,399 and $861,777 for water, and wastewater, respectively.  Staff found errors in FWSC’s system general ledgers that incorrectly reported land values as approved in the previous rate case and transfer dockets and incorrectly reported the value of new land purchased.  In addition, by letter of September 20, 2005, FWSC and Aqua disclosed that a settlement had been reached regarding a disputed land issue which resulted in land valued at $4,865 being transferred to the plaintiff.  Staff therefore recommends a reduction to the Chuluota wastewater land value of $4,865.  Therefore, staff recommends total adjustments to land of $(14,171) and $(25,477), for water and wastewater, respectively for balances of $218,228 and $836,300, as of June 30, 2004.  (See Adj. Nos. 9, 10, 14, 21, 29, 33, 35)

Construction Work in Progress (CWIP).  FWSC’s general ledger had CWIP balances as of June 30, 2004, of $235,371 and $428,341, for water and wastewater, respectively.  A review of FWSC’s supporting documentation revealed unsubstantiated CWIP, incorrectly recorded CWIP, and CWIP that was closed prior to the transfer.  As a result, staff recommends that CWIP balances be decreased by $17,922 and $108,154 for water and wastewater, respectively, resulting in balances as of June 30, 2004, of $217,449 and $320,187 for water and wastewater, respectively.  (See Adj. Nos. 12, 32, 37)

Plant Held for Future Use (PHFU).  FWSC’s balances for PHFU are only found in the Sunny Hills water and wastewater systems.  The PHFU was not transferred to Aqua, therefore, the balances of $12,938 and $5,442 for water and wastewater should be removed.  Staff recommends adjustments of $(12,938) and $(5,442) for water and wastewater, respectively, leaving zero PHFU balances for these two systems as of June 30, 2004.  (See Adj. No. 31)

Accumulated Depreciation.  According to FWSC’s general ledger, the accumulated depreciation balances as of June 30, 2004, are $(4,028,668), $(3,266,496) and ($51,331) for water, wastewater and general plant, respectively.  The accumulated depreciation balances did not account for all retired assets, for additional plant, for plant which was previously retired but debited back to the miscellaneous depreciation accounts, and for plant not transferred.  Staff recommends that the utility’s accumulated depreciation be increased by $422,063, $575,830 for water and wastewater, respectively, and be decreased by $51,331 for general plant.   The resulting balances as of June 30, 2004, should be $4,450,731, $3,842,326, and $0 for water, wastewater, and general plant, respectively.  (See Adj. Nos. 1, 2, 3, 4, 5, 6, 7, 8, 14, 15, 16, 17, 18, 21, 22, 24, 25, 26, 28, 36, 40)   

Contributions-In-Aid-of-Construction (CIAC).  FWSC’s CIAC balances as of June 30, 2004, are $3,383,230 and $3,221,633 for water and wastewater, respectively.  Staff found that the Tomoka CIAC transfer balance was not posted to FWSC’s general ledger subsequent to the order in Docket No. 000334-WU approving the transfer.  As will be discussed in Issue 10, staff recommends that CIAC be increased to reflect over collection of AFPI from January 1, 1997 to June 30, 2004. Therefore, staff recommends that CIAC be increased by $50,100 and $209,249 for water and wastewater, respectively, resulting in June 30, 2004, balances of $3,433,330 and $3,430,882 for water and wastewater, respectively.  (See Adj. Nos. 14, 30)

Accumulated Amortization of Contributions-In-Aid-of-Construction (AACIAC).  The general ledger balances in AACIAC at the time of transfer are $1,059,499 and $1,243,374 for water and wastewater, respectively.  Staff determined that the AACIAC balance was not increased for the Tomoka transfer mentioned above, one CIAC balance was incorrectly amortized, and there were four systems included in the previous rate case which were not reconciled to the order.  Staff recommends that the AACIAC balances be increased by $38,002 and $2,180 for water and wastewater, respectively, resulting in AACIAC balances of $1,097,501 and $1,245,554 for water and wastewater, respectively, as of June 30, 2004.  (See Adj. Nos. 14, 19, 20, 34)

Acquisition Adjustments (AA) and Accumulated Amortization (AAAA).  FWSC’s general ledger for June 30, 2004, included AA balances of $649,373 and $(339,459) for water and wastewater, respectively.  Consistent with prior Commission decisions, acquisition adjustments do not survive subsequent transfers[17].  Therefore, staff recommends that the remaining balances of AA and AAAA should be reduced to zero.  (See Adj. Nos. 11, 13, 34, and 38)

            Extraordinary Abandonment.  As discussed in Issue 6, Staff recommends that extraordinary abandoments of $11,503 and $200,099 for water and wastewater respectively be included in rate base.

 

            Regulatory Assets.  As discussed in Issue 3, Staff recommends that regulatory assets of $489,535 and $174,657 for water and wastewater respectively be included in rate base.

 

Conclusion.  The staff-recommended rate base for transfer purposes is $9,847,462 and $5,894,452 for water and wastewater, respectively, as of June 30, 2004.  Aqua should be required to provide a statement within 60 days of the date of the order that it has set up its books and records using the NARUC USOA and that adjustments to rate base have been made to reflect the approved balances as of June 30, 2004.

Issue 8: 

 Should an acquisition adjustment be included in the calculation of rate base?

Recommendation: 

 No.  Pursuant to Rule 25-30.0371(3)(b), Florida Administrative Code, an acquisition adjustment should not be included in rate base.  (Johnson)

Staff Analysis: 

 An acquisition adjustment results when the purchase price differs from rate base at the time of the acquisition.  Pursuant to Rule 25-30.0371(3), Florida Administrative Code, an acquisition adjustment shall not be included in rate base unless there is proof of extraordinary circumstances or where the purchase price is less than 80 percent of rate base.  In this case, FWSC and Aqua have agreed that if the Commission determines that rate base as of June 30, 2004 is $16,522,963, the purchase price will be $13,820,000.  To the extent, the Commission determines that rate base is less than $16,522,963, then the difference will reduce the purchase price.  To the extent, the Commission determines that rate base is greater than $16,522,963, then the difference will increase the purchase price.  Based on staff’s recommended rate base in Issue 7 of $15,741,914, the purchase price will be $13,008,951.  Therefore, the purchase price will be more than 80 percent of rate base.

 

                        Rate base as of 06/30/04                     $15,741,914

                        80% Rate base                                                   12,593,531

                        Purchase Price                                      13,008,951

                        Acquisition Adjustment                                          0

The buyer has neither requested an acquisition adjustment nor identified any extraordinary circumstances.  Based upon the above, no acquisition adjustment is recommended for rate-making purposes.

Issue 9:  

Should FWSC’s existing water and wastewater rates and service availability charges be continued by Aqua?

Recommendation: 

  Yes.  FWSC’s existing water and wastewater rates and service availability charges should be continued by Aqua until authorized to change by the Commission in a subsequent proceeding.  The tariff sheets reflecting these rates and charges should be effective for services rendered or connections made on or after the stamped approval date pursuant to Rule 25-30.475, Florida Administrative Code.  (Brady)

Staff Analysis: 

 Rule 25-9.044(1), Florida Administrative Code, provides that in the case of a 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.

 

With the exception of Gibsonia Estates, Lake Gibson Estates, Orange Hill/Sugar Creek, Tangerine, and Tomoka, the service rates for the systems being transferred to Aqua were last established by Order No. PSC-99-1794-FOF-WS.  Order No. PSC-99-0093-FOF-WS authorized FWSC to collect uniform service availability charges, customer deposits, and the Commission’s standard miscellaneous service charges.  Since that order, there have been several index increases to the service rates. 

 

Gibsonia Estates, Lake Gibson Estates, Orange Hill/Sugar Creek (Polk County):  By Order No. PSC-97-0376-FOF-WS, the Commission grandfathered the rates for these system, which were previously approved by Polk County, and authorized FWSC to collect the uniform service availability charges established for FWSC by Order No. PSC-96-1320-FOF-WS.  Since the grandfather order, there have been several index increases to the service rates.

 

Tangerine (Orange County):  Tangerine’s service rates and service availability charges were last established by Order PSC-99-1399-PAA-WU[18].  After the system was transferred to FWSC in Docket No. 000333-WU, the system’s billing cycle was changed from quarterly to monthly and a private fire protection service tariff was approved.[19]  Since the transfer to FWSC, there has been one index increase to service rates.

 

Tomoka (Volusia County):  Tomoka’s service rates and service availability charges were established by Order No. 21674.[20]  Tomoka’s service rates and charges were subsequently modified by Order No. 24657.[21]  Since the transfer to FWSC in Docket No. 000334-WU, there has been one index to service rates.

 

FWSC’s authorized monthly service rates and service availability charges for the water and wastewater systems being transferred to Aqua are shown on the schedules referenced below.  AFPI will be addressed separately in Issue 10.

 

Water

Residential, General, & Multi-Family Services (RS, GS, MF)          Schedule 4, Page 1

Private Fire Protection Service (PF)                                                  Schedule 4, Page 2

Service Availability Charges (except Tangerine)                               Schedule 5, Page 1

Service Availability Charges – Tangerine                                          Schedule 5, Page 2

Wastewater

Residential Service (RS)                                                                    Schedule 4, Page 3

Residential Wastewater Only Service (RWO)                                    Schedule 4, Page 3

General and Multi-Family Services (GS, RS)                        Schedule 4, Page 4

Effluent Service (EF) – Florida Central Commerce                            Schedule 4, Page 4

Service Availability Charges                                                              Schedule 5, Page 3

 

Staff recommends that FWSC’s existing water and wastewater rates and service availability charges be continued by Aqua until authorized to change by the Commission in a subsequent proceeding.  The tariff sheets reflecting these rates and charges should be effective for services rendered or connections made on or after the stamped approval date pursuant to Rule 25-30.475, Florida Administrative Code.

Issue 10: 

 Should Aqua Utilities be authorized to continue collecting AFPI?

 

Recommendation:   Yes.  Aqua should be authorized to continue collecting the remaining authorized AFPI charges from new connections.  Schedule 6 shows the charges and remaining ERCs by system.  The AFPI over-collected by FWSC, in the amount of $212,470, should be credited to CIAC.  Aqua should maintain a monitoring system that prevents future over collection of AFPI.  (Clapp, Brubaker)

 

Staff Analysis:   FWSC was authorized to collect allowance for funds prudently invested (AFPI) by Order No. PSC-96-1320-FOF-WS.  The charges were later modified and included in Order No. PSC-99-1794-FOF-WS.  AFPI charges were approved for FWSC to allow the utility to recover depreciation and other carrying costs associated with plant that was found to be non used and useful in FWSC’s last rate case.  The charges were capped after five years.  Schedule 6 shows the approved AFPI charges by system and the remaining number of ERCs from which the charges can be collected. 

FWSC provided a detailed analysis showing the AFPI collections through the date of transfer.  The schedule shows that FWSC over-collected AFPI charges from new customers in the Chuluota, Florida Central Commerce Park, and Jungle Den systems.  Although FWSC’s analysis also shows under collections of AFPI, those under collections represent the total remaining AFPI collections available based on the remaining number of future ERCs from which FWSC was authorized to collect AFPI charges.  Those additional ERCs have not yet connected to FWSC’s various systems, therefore FWSC is not yet entitled to collect those AFPI charges.

FWSC’s Position.  FWSC takes the position that in approving AFPI for FWSC, the Commission approved a total amount for the utility.  Therefore, any amount appearing to have been over-collected would be offset by amounts under collected by all systems within FWSC.  The over-collection of approximately $185,000 for Chuluota’s water and wastewater plant and wastewater collection lines should be offset by the under collection of approximately $76,000 for water transmission and distribution lines.

The focus on the over collection of AFPI for some of the facilities while ignoring the under-collection of AFPI for Chuluota and the total company under collection fails to take into account the substantial investment by FWSC of approximately $8.6 million in plant for these systems since January 1, 1997.  FWSC’s investment in the Chuluota system post-January 1997 is approximately $3 million, or a 94% increase over the $3.2 million test year plant in service amount approved in the 1995 rate case.  FWSC earned no return of or return on these substantial investments, as they were not included in rate base the last time rates were established by the Commission.  The AFPI collected by the Chuluota systems helped mitigate the impact of the lack of return on, or a return of, the $3 million post-rate case investment and contributed to deferring the need for a future rate filing.

OPC’s Position.  OPC takes the position that FWSC’s argument that the utility was evaluated on a total-company basis in its last rate case does not hold merit.  By looking at the final order in the docket, the Commission set rate base by system, not in total, including used and useful plant adjustments, operation and maintenance expenses, depreciation, and taxes.

Analysis.  FWSC’s argument that the Commission approved a total amount of AFPI is incorrect.  AFPI was established by system based on that system’s unique amount of non used and useful water plant, water transmission and distribution, wastewater treatment and disposal, and wastewater collection assets.  Although FWSC has invested a significant amount in plant for the Chuluota system since the AFPI charges were approved, until a formal request is made and an analysis performed, the additional investment should not be the basis for determining the appropriate treatment for the over collection of the AFPI charge.

Although it appears that FWSC failed to successfully maintain a tracking system for AFPI collections, Aqua has already provided staff with a detailed report showing the transferring systems with the AFPI amounts collectable per ERC.  Staff has verified this report.

According to the report submitted by FWSC on March 10, 2005, the following amounts were over-collected for the Chuluota water and wastewater systems, the Florida Central Commerce Park wastewater system, and the Jungle Den wastewater system.

 

FWSC’s record of AFPI collections appears to indicate that the AFPI over collections were made to developers, as opposed to individuals.  Staff recommends that the $212,470 of excess AFPI collected by FWSC should be credited to CIAC for the Chuluota water and wastewater systems and the Florida Central Commerce Park and Jungle Den wastewater systems.  This is consistent with prior Commission decisions[22].

Staff recommends that Aqua should be authorized to continue collecting the remaining authorized AFPI charges from new connections.  Schedule 6 shows the charges and remaining ERCs by system.  The AFPI over-collected by FWSC, in the amount of $212,470, should be credited to CIAC as shown in Adjustment No. 30 on Schedule 3.  Aqua should maintain a monitoring system that prevents future over collection of AFPI.

Issue 11: 

  

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 within 60 days of the order approving the transfer that it has established its books and records in compliance with the NARUC USOA and that its books have been adjusted to reflect the approved rate base balances as of the date of the transfer.  Upon receipt of the statement, the docket should be administratively closed.  (Brubaker)

Staff Analysis: 

 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 within 60 days of the order approving the transfer that it has established its books and records in compliance with the NARUC USOA and that its books have been adjusted to reflect the approved rate base balances as of the date of the transfer.  Upon receipt of the statement, the docket should be administratively closed.

Attachment 1 Page 1 of 1 FWSC PLANTS SOLD TO AQUA
SORTED BY PLANT NAME				SORTED BY COUNTY
Plant Name	County	Service		County	Plant Name	Service
BEECHER'S POINT	PUTNAM	W / WW		BREVARD	KINGSWOOD	W
CARLTON VILLAGE	LAKE	W		BREVARD	OAKWOOD	W
CHULUOTA	SEMINOLE	W / WW		HIGHLANDS	LEISURE LAKES	W / WW
EAST LAKE HARRIS ESTATES	LAKE	W		LAKE	CARLTON VILLAGE	W
FERN TERRACE	LAKE	W		LAKE	EAST LAKE HARRIS ESTATES	W
FLORIDA CENTRAL COMMERCE PARK	SEMINOLE	WW		LAKE	FERN TERRACE	W
FRIENDLY CENTER	LAKE	W		LAKE	FRIENDLY CENTER	W
GIBSONIA ESTATES	POLK	W		LAKE	GRAND TERRACE	W
GRAND TERRACE	LAKE	W		LAKE	HOBBY HILLS	W
HARMONY HOMES	SEMINOLE	W		LAKE	HOLIDAY HAVEN	W / WW
HERMITS COVE	PUTNAM	W		LAKE	IMPERIAL MOBILE TERRACE	W
HOBBY HILLS	LAKE	W		LAKE	MORNINGVIEW	W / WW
HOLIDAY HAVEN	LAKE	W / WW		LAKE	PALMS MOBILE HOME PARK	W
IMPERIAL MOBILE TERRACE	LAKE	W		LAKE	PICCIOLA ISLAND	W
INTERLACHEN LAKES ESTATES	PUTNAM	W		LAKE	PINEY WOODS	W
JUNGLE DEN	VOLUSIA	W / WW		LAKE	QUAIL RIDGE	W
KINGSWOOD	BREVARD	W		LAKE	SILVER LAKE ESTATE / WESTERN SHORES	W
LAKE GIBSON ESTATES	POLK	W / WW		LAKE	SKYCREST	W
LEISURE LAKES	HIGHLANDS	W / WW		LAKE	STONE MOUNTAIN	W
MORNINGVIEW	LAKE	W / WW		LAKE	VALENCIA TERRACE	W / WW
OAKWOOD	BREVARD	W		LAKE	VENETIAN VILLAGE	W / WW
ORANGE HILL / SUGAR CREEK	POLK	W		ORANGE	TANGERINE	W
PALM PORT	PUTNAM	W / WW		PASCO	PALM TERRACE	W / WW
PALM TERRACE	PASCO	W / WW		PASCO	ZEPHYR SHORES	W / WW
PALMS MOBILE HOME PARK	LAKE	W		POLK	GIBSONIA ESTATES	W
PARK MANOR	PUTNAM	WW		POLK	LAKE GIBSON ESTATES	W / WW
PICCIOLA ISLAND	LAKE	W		POLK	ORANGE HILL / SUGAR CREEK	W
PINEY WOODS	LAKE	W		PUTNAM	BEECHER'S POINT	W / WW
POMONA PARK	PUTNAM	W		PUTNAM	HERMITS COVE	W
QUAIL RIDGE	LAKE	W		PUTNAM	INTERLACHEN LAKES ESTATES	W
RIVER GROVE	PUTNAM	W		PUTNAM	PALM PORT	W / WW
SILVER LAKE ESTATE / WESTERN SHORES	LAKE	W		PUTNAM	PARK MANOR	WW
SILVER LAKE OAKS	PUTNAM	W / WW		PUTNAM	POMONA PARK	W
SKYCREST	LAKE	W		PUTNAM	RIVER GROVE	W
ST. JOHNS HIGHLANDS	PUTNAM	W		PUTNAM	SILVER LAKE OAKS	W / WW
STONE MOUNTAIN	LAKE	W		PUTNAM	ST. JOHNS HIGHLANDS	W
SUNNY HILLS	WASHINGTON	W / WW		PUTNAM	WELAKA / SARATOGA HARBOUR	W
TANGERINE	ORANGE	W		PUTNAM	WOOTENS	W
TOMOKA	VOLUSIA	W		SEMINOLE	CHULUOTA	W / WW
VALENCIA TERRACE	LAKE	W / WW		SEMINOLE	FLORIDA CENTRAL COMMERCE PARK	WW
VENETIAN VILLAGE	LAKE	W / WW		SEMINOLE	HARMONY HOMES	W
WELAKA / SARATOGA HARBOUR	PUTNAM	W		VOLUSIA	JUNGLE DEN	W / WW
WOOTENS	PUTNAM	W		VOLUSIA	TOMOKA	W
ZEPHYR SHORES	PASCO	W / WW		WASHINGTON	SUNNY HILLS	W / WW

Attachment 2

Page 1 of 3

 

FRIENDLY CENTER

 

                                                                  LAKE COUNTY

                                                Description of Water Territory Served

 

      Township 20 South, Range 26 East, Section 29 Lake County, Florida.

 

       As a Point of Reference, Commence at a Permanent Reference Marker Located at the Northwesterly Corner of the NE 1/4 Of Section 29, Township 20 South, Range 26 East, Lake County, Florida; Thence Southerly Along the West Line of the NE 1/4 of Said Section a Distance of 638.3 Feet; Thence East 50 Feet to a Point of Intersection With The Easterly Boundary of Monroe Street, a Right of Way and The Point of Beginning of this Description; Thence South 61 Degrees 43' East a Distance of 255 Feet; Thence South 28 Degrees 17' West a Distance of 150 Feet; Thence South 61 Degrees 43' East a Distance of 79.63 Feet; Thence South 28 Degrees 25’ West a Distance of 75.00 Feet; Thence North 65 Degrees 19' 05" West a Distance of 207.90 Feet to a Point of Intersection With The Easterly Boundary of said Monroe Street; Thence North 00 Degrees 20’ 10” East Along the Easterly Boundary of said Monroe Street a Distance of 250 Feet to The Point of Beginning and the Completion of this Description. 

 

       Together With: as a Point of Reference, Commence at a Permanent Reference Marker Located at the Northwesterly Corner of the NE 1/4 of Section 29, Township 20 South, Range 26 East, Lake County, Florida; Thence Easterly Along the Northerly Boundary of Said Section 29, South 89 Degrees 21’40” East A Distance Of 50.00 Feet To A Point Of Intersection With The Easterly Boundary Of Monroe Street, A Right Of Way; Thence South 0 Degrees 20'10" West A Distance Of 1250.71 Feet Along The Easterly Boundary Of Said Monroe Street, To A Point Of Intersection With The Northerly Boundary Of Georgia Avenue, A Right Of Way And The Point Of Beginning Of This Description; Thence South 83 Degrees 16’ 00” East A Distance Of 236.47 Feet Along The Northerly Boundary Of Said Georgia Avenue To A Point Of Intersection With The Westerly Boundary Of S.R. 561, A Right Of Way; Thence South 28 Degrees 06’ 35” West A Distance Of 487.64 Feet Along The Westerly Boundary Of Said S.R. 561 To A Point Of Intersection With The Southerly Extension Of The Easterly Boundary Of Said Monroe Street; Thence South 0 Degrees 20'10" West A Distance Of 277.31 Feet Along The Easterly Boundary Of Said Monroe Street To A Point Of Intersection With An Easterly Extension Of The Southerly Boundary Of Vermont Avenue, A Right Of Way; Thence North 89 Degrees 33'30" West A Distance Of 117.93 Feet Along Said Easterly Extension Of The Southerly Boundary Of Said Vermont Avenue To A Point Of Intersection Of The Westerly Boundary Of Said Monroe Street With The Southerly Boundary Of Said Vermont Avenue; Thence North 89 Degrees 33'30" West A Distance Of 629.57 Feet Along The Southerly Boundary Of Said Vermont Avenue To A Point Of Intersection With The Westerly Boundary Of Madison Street, A Right Of Way; Thence North 00 Degrees 29'28" East A Distance Of 727.96 Feet, Along The Westerly Boundary Of Said Madison Street To A Point Of Intersection With The Northerly Boundary Of Said Georgia Avenue Thence South 89 Degrees 30' 20" East A Distance Of 645.56 Feet To A Point Of Intersection With The Westerly Boundary Of Said Monroe Street; Thence North 0 Degrees 20'10" East A Distance Of 17.00 Feet Along The Westerly Boundary Of Said Monroe Street; Thence South 89 Degrees 30'20" East A Distance Of 100 Feet To The Point Of Beginning And The Completion Of This Description.

Attachment 2

Page 2 of 3

 

PALMS MOBILE HOME PARK

 

LAKE COUNTY

 

Description of Water Territory Served

 

      Township 20 South, Range 24 East, Section 36 Lake County, Florida.

 

       That part of the following, lying West of U. S. Highway No. 27 – the East 1/2 of the North 1/2 of the Southwest 1/4 of the Northeast 1/4; the North 1/2 of the Southeast 1/4 of the Northeast 1/4; and the East 1/2 of the South 1/2 of the Northwest 1/4 of the Northeast 1/4, less the North 330 feet thereof; all lying and being in Section 36, Township 20 South, Range 24 East, Lake County, Florida.

 

 

Attachment 2

Page 3 of 3

 

 

PARK MANOR

 

PUTNAM COUNTY

 

Description of Wastewater Territory Served

 

 

      Township 10 South, Range 25 East, Putnam County, Florida.

 

      Section 18

            The NE 1/4 of the SW 1/4 of the NW 1/4 of said Section 18.

 

Attachment 3

Page 1 of 3

 

Aqua Utilities Florida, Inc.

 

Water and Wastewater Service Territory

 

                                                                                                     Docket                            Filing

System                                             Order No.                            Number                          Type

 

Beecher's Point                                  20469                                  880292-WS              Transfer

Beecher's Point                                  PSC-93-1293-FOF-WS        930443-WS              Amendment

Carlton Village                                    8075                                    770578-W                Transfer

Chuluota                                            9988                                    780278-WS              Transfer

Chuluota                                            16162                                  860585-WS              Amendment

Chuluota                                            PSC-95-0414-FOF-WS        930130-WS              Amendment

Chuluota                                            PSC-00-0734-FOF-WS        980657-WS              Amendment

Chuluota                                            PSC-04-0532-AS-WS          030637-WS              Amendment

East Lake Harris                                 8144                                    770579-W                Transfer

Fern Terrace                                      5595                                    C-72505-W              Original Certificate

Fern Terrace                                      PSC-93-1150-FOF-WU        930129-WU              Amendment

Florida Central Commerce Park           21913                                  881573 SU               Amendment

Friendly Center                                  See Attachment 2

Gibsonia Estates                                 PSC-97-0376-FOF-WS        960909-WS              Grandfather Certificate

Gibsonia Estates                                 PSC-04-0859-FOF-WU        040484-WU              Amendment

Grand Terrace                                    23656                                  891320-WU              Transfer

Grand Terrace                                    24230                                  900702-WU              Amendment

Harmony Homes                                 7588                                    750760-W                Original Certificate

Hermits Cove                                      5499                                    C71611-W               Original Certificate

Hermits Cove                                      13519                                  840023-WU              Transfer

Hobby Hills                                         8076                                    770577-W                Transfer

Hobby Hills                                         PSC-93-1150-FOF-WU        930129-WU              Amendment

Holiday Haven                                    20869                                  880605-WS              Transfer

Holiday Haven                                    PSC-93-1150-FOF-WU        930129-WU              Amendment

Imperial Mobile                                   21636                                  890348-WU              Transfer

Imperial Mobile                                   PSC-93-1306-FOF-WU        930129-WU              Amendment

Interlachen Lake Estates                     6236                                    74373-W                  Original Certificate

Interlachen Lake Estates                     14059                                  840359-WS              Amendment

Interlachen Lake Estates                     PSC-93-1293-FOF-WS        930443-WS              Amendment

Jungle Den                                        20869                                  880605-WS              Transfer

Jungle Den                                        PSC-93-1449-FOF-WS        930153-WS              Amendment

Kingswood                                         19505                                  880206-WU              Transfer

Attachment 3

Page 2 of 3

 

 

Lake Gibson Estates                           PSC-97-0376-FOF-WS        960909-WS              Grandfather Certificate

Leisure Lakes                                     22916                                  891250 WS              Transfer

Morningview                                       8299                                    780057-WS              Transfer

Oakwood                                            19505                                  880206-WU              Transfer

Oakwood                                            PSC-94-1011-FOF-WU        930737-WU              Amendment

Orange Hill/Sugar Creek                     PSC-97-0376-FOF-WS        960909-WS              Grandfather Certificate

Palm Port                                           7078                                    750436-W                Original Certificate

                                                                                                    750437-S

Palm Port                                           9845                                    800368-WS              Transfer

Palm Port                                           9845-A                                800368-WS              Correction

Palm Port                                           PSC-93-1293-FOF-WS        930443-WS              Amendment

Palm Terrace                                     20140                                  880472-WS              Transfer

Palm Terrace                                     21146                                  890202-WS              Amendment

Palms Mobile Home Park                     See Attachment 2

Park Manor (Water)                            13844                                  840395-WU              Amendment

Now interconnected with Interlachen Lake

Park Manor (Wastewater)                   See Attachment 2

Picciola Island                                    9988                                    780278-W                Transfer

Picciola Island                                    PSC-93-1150-FOF-WU        930129-WU              Amendment

Piney Woods                                     5595                                    C-72505-W              Original Certificate

Piney Woods                                     PSC-93-1150-FOF-WU        930129-WU              Amendment

Pomona Park                                     7895                                    760711-W                Original Certificate

Pomona Park                                     9907                                    800638-W                Transfer

Quail Ridge                                        23505                                  900556-WU              Transfer

River Grove                                        9389                                    791040-W                Transfer

Silver Lake Estates/Western Shores     6801                                    750327-W                Original Certificate

Silver Lake Estates/Western Shores     6928                                    750367-W                Original Certificate

Silver Lake Estates/Western Shores     9483                                    791043-W                Transfer

Silver Lake Estates/Western Shores     9688                                    791043-W                Supplement Order

Silver Lake Estates/Western Shores     20647                                  881011-WU              Transfer

Silver Lake Estates/Western Shores     23459                                  900227-WU              Amendment

Silver Lake Estates/Western Shores     PSC-93-0754-FOF-WU        921044-WU              Amendment

Silver Lake Estates/Western Shores     PSC-93-0754A-FOF-WU      921044-WU              Correction

Silver Lake Estates/Western Shores     PSC-03-1235-FOF-WU        021137-WU              Amendment

Attachment 3

Page 3 of 3

 

 

Silver Lake Estates/Western Shores     PSC-02-1427-FOF-WU        990054-WU              Amendment

Silver Lake Oaks                                 23397                                  891187-WS              Transfer

Skycrest                                            5595                                    C-72505-W              Original Certificate

Skycrest                                            PSC-93-1150-FOF-WU        930129-WU              Amendment

St. Johns Highlands                            14059                                  840359-WS              Amendment

Stone Mountain                                  15295                                  850695-WU              Amendment

Sunny Hills                                         18902                                  870984-WS              Original Certificate

Sunny Hills                                         22307                                  881501-WS              Transfer of Control

Sunny Hills                                         25575                                  910662-WS              Corp. Reorganization

Tangerine                                          5446                                    71559-W                  Original Certificate

Tangerine                                          9568                                    800048-W                Amendment

Tangerine                                          PSC-00-1515-PAA-WU        000333-WU              Transfer

Tomoka                                              5397                                    71583-W                  Original Certificate

Tomoka                                              5397-A                                71583-W                  Correction

Tomoka                                              PSC-00-1659-PAA-WU        000334-WU              Transfer

Valencia Terrace                                PSC-95-0268-FOF-WS        940091-WS              Transfer

Venetian Village                                  9635                                    800192-WS              Original Certificate

Venetian Village                                  10109                                  800636-WS              Transfer

Venetian Village                                  10109-A                              800636-WS              Correction

Venetian Village                                  PSC-93-1150-FOF-WU        930129-WU              Amendment

Welaka/Saratoga Harbour                   5499                                    C71611-W               Original Certificate

Welaka/Saratoga Harbour                   13519                                  840023-WU              Transfer

Welaka/Saratoga Harbour                   PSC-93-1293-FOF-WS        930443-WS              Amendment

Wootens                                            13519                                  840023-WU              Transfer

Wootens                                            6975                                    750206-W                Amendment

Wootens                                            PSC-93-1293-FOF-WS        930443-WS              Amendment

Zephyr Shores                                   18243                                  870572-WS              Transfer

 

 

 

For a complete territory description see the orders.

Schedule 1

Page 1 of 2

REGULATORY ASSET BY REMAINING SYSTEMS

	REGULATORY ASSET BY SYSTEM AS OF DECEMBER 31, 1996			ERCs AS OF 6/30/2004		ESTIMATED MONTHLY IMPACT OF REG ASSET PER ERC FOR 10 YEARS
SYSTEM NAME	WATER	WASTEWATER	TOTAL	WATER	WASTEWATER	WATER	WASTEWATER
Beecher's Point	$5,298	$2,221	$7,519	112	49	$0.39	$0.38
Carlton Village	8,219	-na-	8,219	201		0.34
Chuluota	39,502	7,510	47,012	1,240	485	0.27	0.13
East Lake Harris Estates	9,804	-na-	9,804	180		0.45
Fern Terrace	6,985	-na-	6,985	136		0.43
Fla. Central Commerce Park	-na-	8,169	8,169	-na-	197		0.35
Friendly Center	1,138	-na-	1,138	30		0.32
Grand Terrace	6,137	-na-	6,137	127		0.40
Harmony Homes	3,478	-na-	3,478	64		0.45
Hermits Cove	9,629	-na-	9,629	175		0.46
Hobby Hills	5,331	-na-	5,331	113		0.39
Holiday Haven	6,201	5,151	11,352	129	113	0.40	0.46
Imperial Mobile Terrace	13,481	-na-	13,481	248		0.45
Interlachen Lakes Estates	14,024	-na-	14,024	287		0.41
Jungle Den	6,243	6,492	12,735	114	136	0.46	0.40
Kingswood	3,428	-na-	3,428	65		0.44
Leisure Lakes	13,435	12,688	26,123	288	271	0.39	0.39
Morningview	2,626	2,018	4,644	44	44	0.50	0.38
Oakwood	11,555	-na-	11,555	254		0.38
Palm Port	5,883	5,888	11,771	107	108	0.46	0.45
Palm Terrace	67,173	57,199	124,372	1,226	1,032	0.46	0.46
Palms Mobile Home Park	3,230	-na-	3,230	63		0.43
Park Manor	-na-	1,852	1,852	-na-	35		0.44
Piccola Island	7,579	-na-	7,579	157		0.40

Schedule 1

Page 2 of 2

	REGULATORY ASSET BY SYSTEM AS OF DECEMBER 31, 1996			ERCs AS OF 6/30/2004		ESTIMATED MONTHLY IMPACT OF REG ASSET PER ERC FOR 10 YEARS
SYSTEM NAME	WATER	WASTEWATER	TOTAL	WATER	WASTEWATER	WATER	WASTEWATER
Piney Woods	9,274	-na-	9,274	184		0.42
Pomona Park	10,472	-na-	10,472	209		0.42
Quail Ridge	972	-na-	972	73		0.11
River Grove	5,777	-na-	5,777	108		0.45
Silver Lake Estates / Western Shores	99,088	-na-	99,088	1,857		0.44
Silver Lake Oaks	1,585	1,488	3,073	58	58	0.23	0.21
Skycrest	6,349	-na-	6,349	133		0.40
St. Johns Highlands	4,667	-na-	4,667	96		0.41
Stone Mountain	419	-na-	419	19		0.18
Sunny Hills	34,568	9,910	44,478	579	186	0.50	0.44
Valencia Terrace	21,401	21,539	42,940	395	374	0.45	0.48
Venetian Village	7,749	4,921	12,670	150	94	0.43	0.44
Welaka / Saratoga Harbour	7,754	-na-	7,754	162		0.40
Wootens	1,359	-na-	1,359	33		0.34
Zephyr Shores	27,722	27,611	55,333	627	623	0.37	0.37
Totals	$489,535	$174,657	$664,192	10,047	3,667

 

 

                                                                                                                                                              SCHEDULE 2

                                                                                                                                                              PAGE 1 OF 61

 

FLORIDA WATER SERVICES CORP.

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

FLORIDA WATER SERVICES CORP.

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

Schedule 2

Page 2 OF 61

FLORIDA WATER SERVICES CORP.

GENERAL RATE BASE AS OF JUNE 30, 2004

 

 

 

FLORIDA WATER SERVICES CORP.

COMBINED RATE BASE AS OF JUNE 30, 2004

 

Schedule 2

Page 3 OF 61

BEECHER’S POINT UTILITY SYSTEM - 472 - PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

Schedule 2

Page 4 OF 61

BEECHER’S POINT UTILITY SYSTEM – 472 - PUTNAM COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

 

Schedule 2

Page 5 OF 61

CARLTON VILLAGE UTILITY SYSTEM - 555 - LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 6 OF 61

 

CHULUOTA UTILITY SYSTEM – 335 – SEMINOLE COUNTY                                                        

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

sCHEDULE 2

pAGE 7 OF 61

CHULUOTA UTILITY SYSTEM - 335 – SEMINOLE COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

sCHEDULE 2

pAGE 8 OF 61

 

EAST LAKE HARRIS ESTATES UTILITY SYSTEM - 557 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

sCHEDULE 2

PAGE 9 OF 61

 

FERN TERACE UTILITY SYSTEM - 552 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 10 OF 61

 

FLORIDA CENTRAL COMMERCE PARK UTILITY SYSTEM - 340 – SEMINOLE COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 11 OF 61

 

FRIENDLY CENTER UTILITY SYSTEM - 556 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                                     SCHEDULE 2

                                                                                                                                                                     pAGE 12 OF 61

 

GIBSONIA ESTATES UTILITY SYSTEM – 215 - POLK

WATER RATE BASE AS OF JUNE 30, 2004

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$338,765	($1,188)	4, 12	$337,577
LAND & LAND RIGHTS	3,824	6	29	3,830
CONSTRUCTION-WORK-IN-PROGRESS	(2,456)	2,456	12	0
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	47,033	(47,033)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(67,107)	0		(67,107)
ACCUMULATED DEPRECIATION	(38,137)	(10,472)	4,16,17,18,27	(48,609)
ACCUMULATED AMORTIZATION OF CIAC	38,256	0		38,256
ACCUMULATED AMORTIZATION OF AA	(7,367)	7,367	13	0
OTHER REGULATORY ASSET	0	0		0
TOTAL	$312,811	($48,864)		$263,947

 

 

 

GIBSONIA ESTATES UTILITY SYSTEM – 215

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

304                         Structures & Improvements                                               $  14,270                  $(  9,225)

307                         Wells & Springs                                                                         $  20,768                  $(  5,580)

309                         Supply Mains                                                                                $    8,590                  $(  1,970)

310                         Power Generation Equipment                                             $  47,006                  $(17,670)

311                         Pumping Equipment                                                                   $  26,457                  $(  3,906)

330                         Distribution Reservoirs                                                        $  36,553                  $(     413)

331                         Transmission & Distribution Mains                                   $154,635                   $(15,545)

333                         Services                                                                                         $    2,371                  $(     632)

334                         Meters & Meter Installations                                            $  14,025                  $   8,389

335                         Hydrants                                                                                      $  11,634                  $(  1,475)

347                         Miscellaneous Equipment                                                     $    1,268                  $(     582)

________________________________________________________________________________________________

TOTAL                                                                                                                            $337,577                  $(48,609)

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 13 OF 61

 

GRAND TERRACE UTILITY SYSTEM - 575 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 14 OF 61

 

HARMONY HOMES UTILITY SYSTEM - 326 – SEMINOLE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 15 OF 61

 

HERMITS COVE UTILITY SYSTEM – 438 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 16 OF 61

 

HOBBY HILLS UTILITY SYSTEM - 558 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 17 OF 61

 

HOLIDAY HAVEN UTILITY SYSTEM - 573 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              SCHEDULE 2

                                                                                                                                                              pAGE 18 OF 61

 

HOLIDAY HAVEN UTILITY SYSTEM - 573 – LAKE COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 19 OF 61

 

IMPERIAL MOBILE TERRACE UTILITY SYSTEM - 570 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 20 OF 61

 

INTERLACHEN LAKES ESTATES UTILITY SYSTEM - 470 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 21 OF 61

 

JUNGLE DEN UTILITY SYSTEM - 1802 – VOLUSIA COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 22 OF 61

 

JUNGLE DEN UTILITY SYSTEM - 1802 – VOLUSIA COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              SCHEDULE 2

                                                                                                                                                              pAGE 23 OF 61

 

KINGSWOOD UTILITY SYSTEM - 1701 – BREVARD COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                                     sCHEDULE 2

                                                                                                                                                                     pAGE 24 OF 61

 

LAKE GIBSON estates UTILITY SYSTEM - 210 – POLK COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$661,669	($37,245)	4, 4.5	$624,424
LAND & LAND RIGHTS	29,032	(1,511)	29	27,521
CONSTRUCTION-WORK-IN-PROGRESS	4,578	(4,578)	12	0
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	3,202	(3,202)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(223,113)	0		(223,113)
ACCUMULATED DEPRECIATION	(211,248)	719	4, 15, 16, 18, 40	(210,529)
ACCUMULATED AMORTIZATION OF CIAC	67,656	0		67,656
ACCUMULATED AMORTIZATION OF AA	(1,686)	1,686	13	0
OTHER REGULATORY ASSET	0	0		0
TOTAL	$330,089	($44,131)		$285,958

 

 

 

LAKE GIBSON estates UTILITY SYSTEM - 210

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

302                         Franchises                                                                                   $    1,180                  $(       436)

304                         Structures & Improvements                                                $140,232                   $(  51,046)

305                         Collecting & Impounding Reservoirs                              $                              $(       639)

307                         Wells & Springs                                                                         $  33,259                  $(  14,406)

309                         Supply Mains                                                                               $  38,373                  $(  26,269)

310                         Power Generation Equipment                                             $  39,310                  $        425

311                         Pumping Equipment                                                                  $  40,765                  $(  21,335)

320                         Water Treatment Equipment                                              $                              $(       971)

330                         Distribution Reservoirs                                                        $  51,982                  $(  16,828)

331                         Transmission & Distribution Mains                                  $170,383                  $(  48,048)

333                         Services                                                                                        $  41,005                  $(  18,354)

334                         Meters & Meter Installations                                            $  43,694                  $(    4,822)

335                         Hydrants                                                                                     $    7,845                  $(    1,584)

340                         Computer Hardware & Software                                      $    4,093                  $(    4,093)

343                         Tools, Shop & Garage Equipment                                       $  11,219                  $(    2,283)

344                         Laboratory Equipment                                                         $       272                                 $(        47)

345                         Power Operated Equipment                                                 $       375                                 $(       375)

347                         Miscellaneous Equipment                                                    $       437                                 $        582

                                                                                                                                                                                          

TOTAL                                                                                                                           $624,424                   $(210,529)

 

                                                                                                                                                                     sCHEDULE 2

                                                                                                                                                                     pAGE 25 OF 61

 

LAKE GIBSON Estates UTILITY SYSTEM - 210 – POLK COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$2,580,485	($151,791)	2, 3, 4	$2,428,694
LAND & LAND RIGHTS	10,110	3,146	29	13,256
CONSTRUCTION-WORK-IN-PROGRESS	120,051	(120,051)	12	0
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	3,188	(3,188)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(250,697)	0		(250,697)
ACCUMULATED DEPRECIATION	43,721	(375,243)	2, 3, 4, 16, 18, 22,	(331,513)
ACCUMULATED AMORTIZATION OF CIAC	67,090	0		67,090
ACCUMULATED AMORTIZATION OF AA	(1,676)	1,676	13	0
EXTRAORDINARY ABANDONMENT (NET)	298,583	(139,578	22	159,005
OTHER REGULATORY ASSET	0	0		0
TOTAL	$2,870,853	($785,020)		$2,085,835

 

 

 

LAKE GIBSON estates UTILITY SYSTEM - 210

WASTEWATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

352                         Franchises                                                                                   $       1,527               $(       865)

354                         Structures & Improvements                                                $     21,110               $(       158)

360                         Collection Sewers -- Force                                                  $     95,990               $(  69,805)

361                         Collection Sewers -- Gravity                                                            $   672,671                $(  59,174)

363                         Services                                                                                        $     24,211               $(  15,324)

364                         Flow Measuring Devices                                                        $     20,431               $(  10,457)

370                         Receiving Wells                                                                         $     61,747               $(  13,633)

371                         Pumping Equipment                                                                  $   120,949                $(    6,413)

380                         Treatment & Disposal Equipment                                      $       3,557               $(       512)

381                         Plant Sewers                                                                              $   241,717                $(  21,149)

389                         Other Plant & Miscellaneous Equipment                     $1,148,941                $(127,801)

390                         Computer Hardware & Software Equipment               $       4,093               $(    4,093)

393                         Tools, Shop & Garage Equipment                                       $     10,666               $(    2,196)

394                         Laboratory Equipment                                                         $          272               $(         47)

395                         Power Operated Equipment                                                 $          375               $(       375)

397                         Miscellaneous Equipment                                                     $          437               $         489

                                                                                                                                                                                          

TOTAL                                                                                                                           $2,428,694                $(331,513)

                                                                                                                                                                     SCHEDULE 26

                                                                                                                                                                     pAGE 26 OF 61

 

LEISURE LAKES UTILITY SYSTEM - 2401 – HIGHLANDS COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$330,165	$0		$330,165
LAND & LAND RIGHTS	550	0		550
CONSTRUCTION-WORK-IN-PROGRESS *	3,325	(1,927)	32	1,398
ACQUISITION ADJUSTMENT (AA)	87,469	(87,469)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(128,851)	0		(128,851)
ACCUMULATED DEPRECIATION	(124,204)	9,911	18	(114,293)
ACCUMULATED AMORTIZATION OF CIAC	69,843	0		69,843
ACCUMULATED AMORTIZATION OF AA	(32,783)	32,783	13	0
OTHER REGULATORY ASSET	7,673	5,762	23	13,435
TOTAL	$213,187	($40,940)		$172,246

 

 

 

LEISURE LAKES UTILITY SYSTEM - 2401

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

302                         Franchises                                                                                   $       298                                 $(         97)

304                         Structures & Improvements                                                $  18,079                  $(    6,532)

307                         Wells & Springs                                                                         $  18,144                  $(    2,377)

309                         Supply Mains                                                                               $    4,029                  $(    1,152)

310                         Power Generation Equipment                                             $  25,331                  $(  18,648)

311                         Pumping Equipment                                                                  $  47,130                  $(   11,261)

320                         Water Treatment Equipment                                              $  55,901                  $(  15,970)

330                         Distribution Reservoirs                                                        $  34,522                  $(  14,040)

331                         Transmission & Distribution Mains                                  $  67,480                  $(  31,232)

333                         Services                                                                                        $  35,180                  $(  11,475)

334                         Meters & Meter Installations                                            $    5,106                  $     6,007

335                         Hydrants                                                                                     $  18,345                  $(    7,064)

347                         Miscellaneous Equipment                                                    $       620                                        $(       452)

                                                                                                                                                                                          

TOTAL                                                                                                                           $330,165                   $(114,293)

                                                                                                                                                                     sCHEDULE 2

                                                                                                                                                                     pAGE 27 OF 61

 

LEISURE LAKES UTILITY SYSTEM - 2401 – HIGHLANDS COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$329,483	$0		$329,483
LAND & LAND RIGHTS	2,200	0		2,200
CONSTRUCTION-WORK-IN-PROGRESS	0	0		0
ACQUISITION ADJUSTMENT (AA)	(45,098)	45,098	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(238,386)	0		(238,386)
ACCUMULATED DEPRECIATION	(207,226)	9,911	18	(197,315)
ACCUMULATED AMORTIZATION OF CIAC	170,991	0		170,991
ACCUMULATED AMORTIZATION OF AA	15,550	(15,550)	13	0
EXTRAORDINARY ABANDONMENT	0	0		0
OTHER REGULATORY ASSET	26,067	(13,379)	23	12,688
TOTAL	$53,581	$26,080		$79,662

 

 

 

LEISURE LAKES UTILITY SYSTEM - 2401 – HIGHLANDS COUNTY

WASTEWATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

352                         Franchises                                                                                   $       298                                 $(       167)

354                         Structures & Improvements                                                $    4,580                  $(    3,288)

361                         Collection Sewers -- Gravity                                                            $159,494                   $(  94,202)

363                         Services                                                                                        $  16,349                  $(    5,190)

364                         Flow Measuring Devices                                                        $    1,000                  $(    1,000) 

370                         Receiving Wells                                                                         $    9,730                  $(    7,550)

371                         Pumping Equipment                                                                  $  26,351                  $(    7,384)

380                         Treatment & Disposal Equipment                                      $110,747                   $(  84,844)

382                         Outfall Sewer Lines                                                                $       934                                 $     6,310

                                                                                                                                                                                          

TOTAL                                                                                                                           $329,483                   $(197,315)

                                                                                                                                                              sCHEDULE 2

                                                                                                                                                              pAGE 28 OF 61

 

MORNINGVIEW UTILITY SYSTEM - 562 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              SCHEDULE 2

                                                                                                                                                              Page 29 OF 61

 

MORNINGVIEW UTILITY SYSTEM - 562 – LAKE COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 30 OF 61

 

OAKWOOD UTILITY SYSTEM - 1702 – BREVARD COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                                     Schedule 2

                                                                                                                                                                     Page 31 OF 61

 

ORANGE HILL/SUGAR CREEK UTILITY SYSTEM - 212/214 – POLK COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$187,020	($0)		$187,020
LAND & LAND RIGHTS	17,232	0		17,232
CONSTRUCTION-WORK-IN-PROGRESS	112	(0)		112
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	1,555	(1,555)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(19,142)	(0)		(19,142)
ACCUMULATED DEPRECIATION	(12,272)	(23,572)	16, 18, 26	(35,844)
ACCUMULATED AMORTIZATION OF CIAC	6,128	(0)		6,128
ACCUMULATED AMORTIZATION OF AA	(859)	859	13	0
OTHER REGULATORY ASSET	0	0		0
TOTAL	$179,774	($24,268)		$155,507

 

 

 

ORANGE HILL/SUGAR CREEK UTILITY SYSTEM - 212/214 – POLK COUNTY

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

302                         Franchises                                                                    $    1,272                                  $(     445)

304                         Structures & Improvements                               $    3,727                                  $(  1,100)

307                         Wells & Springs                                                          $  10,819                                  $(  2,694)

309                         Supply Mains                                                               $    8,066                                  $(  4,984)

310                         Power Generation Equipment                             $  13,640                                  $(  7,389)

311                         Pumping Equipment                                                   $  34,525                                  $(  8,899)

330                         Distribution Reservoirs                                        $  91,073                                  $(  7,987)

331                         Transmission & Distribution Mains                   $    6,605                                  $(  4,227)

333                         Services                                                                         $    5,511                                  $(  2,203)

334                         Meter & Meter Installations                                              $  11,782                                 $    4,084

                                                                                                                                                                                          

TOTAL                                                                                                            $187,020                                   $(35,844)

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 32 OF 61

 

PALM PORT UTILITY SYSTEM - 440 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 33 OF 61

 

PALM PORT UTILITY SYSTEM - 440 – PUTNAM COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                                     schedule 2

                                                                                                                                                                     Page 34 OF 61

 

PALM TERRACE UTILITY SYSTEM - 1429 – pASCO COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$256,939	$1,255	33	$258,194
LAND & LAND RIGHTS	24,732	(1,255)	33	23,477
CONSTRUCTION-WORK-IN-PROGRESS	64	0		64
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	386,864	(386,864)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(138,157)	0		(138,157)
ACCUMULATED DEPRECIATION	(105,709)	(20,687)	18 ,28	(126,396)
ACCUMULATED AMORTIZATION OF CIAC	82,599	0		82,599
ACCUMULATED AMORTIZATION OF AA	(158,480)	158,480	13	0
OTHER REGULATORY ASSET	36,544	30,629	23	67,173
TOTAL	$385,396	($218,442)		$166,954

 

 

 

PALM TERRACE UTILITY SYSTEM - 1429

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

301                         Organization                                                                              $       552                                 $(       483)

302                         Franchises                                                                                    $    3,283                     $(       824)

304                         Structures & Improvements                                                $  21,451                     $(  12,402)

307                         Wells & Springs                                                                          $    8,689                     $(    4,433)

309                         Supply Mains                                                                               $  20,810                     $(    1,786)

311                         Pumping Equipment                                                                   $    7,644                     $(     2,144)

330                         Distribution Reservoirs                                                         $  10,000                     $(    2,664)

331                         Transmission & Distribution Mains                                   $121,514                     $(  69,830)

333                         Services                                                                                         $    5,757                     $(    1,228)

334                         Meters & Meter Installations                                            $  55,041                     $(  28,610)

343                         Tools, Shop & Garage Equipment                                        $       400                                 $(       400)

344                         Laboratory Equipment                                                          $    2,613                     $(    1,414)

347                         Miscellaneous Equipment                                                    $       440                                 $(       178)

                                                                                                                                                                                          

TOTAL                                                                                                                            $258,194                     $(126,396)

                                                                                                                                                                     Schedule 2

                                                                                                                                                                     Page 35 OF 61

 

PALM TERRACE UTILITY SYSTEM - 1429 – PASCO COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$582,110	($2,515)	33	$579,595
LAND & LAND RIGHTS	68,375	2,515	33	70,890
CONSTRUCTION-WORK-IN-PROGRESS	0	0		0
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	(283,306)	283,306	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(343,113)	0		(343,113)
ACCUMULATED DEPRECIATION	(260,347)	(39,935)	18 , 26, 28	(300,282)
ACCUMULATED AMORTIZATION OF CIAC	264,167	0		264,167
ACCUMULATED AMORTIZATION OF AA	115,211	(115,211)	13	0
EXTRAORDINARY ABANDONMENT	0	0		0
OTHER REGULATORY ASSET	110,412	(53,213)	23	57,199
TOTAL	$253,509	$74,947		$328,456

 

 

 

PALM TERRACE UTILITY SYSTEM - 1429

WASTEWATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

351                         Organization                                                                             $       552                  $(       242)

352                         Franchises                                                                                   $    2,878                   $(    1,048)

354                         Structures & Improvements                                                $    3,238                   $(  20,474)

360                         Collection Sewers -- Force                                                  $  15,018                   $(    5,763)

361                         Collection Sewers -- Gravity                                                $232,422                 $(136,922)

363                         Services                                                                                        $    2,099                   $(       862)

364                         Flow Measuring Devices                                                        $    5,969                   $(    5,969)

370                         Receiving Wells                                                                         $  13,851                   $(  10,559)

371                         Pumping Equipment                                                                  $  50,603                   $     3,682

380                         Treatment & Disposal Equipment                                      $195,454                   $(117,972)

381                         Plant Sewers                                                                              $    4,058                   $(    2,161)

393                         Tools, Shop & Garage Equipment                                       $       400                  $(       400)

394                         Laboratory Equipment                                                         $    2,613                   $(    1,414)

397                         Hydrants                                                                                     $       440                  $(       178)

                                                                                                                                                                                          

TOTAL                                                                                                                           $579,595                   $(300,282)

                                                                                                                                                             schedule 2

                                                                                                                                                             Page 36 OF 61

 

PALMS MOBILE HOME PARK UTILITY SYSTEM - 559  - LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 37 OF 61

 

PARK MANOR UTILITY SYSTEM - 444 – PUTNAM COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 38 OF 61

 

PICCIOLA ISLAND UTILITY SYSTEM - 564 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 39 OF 61

 

PINEY WOODS UTILITY SYSTEM - 553 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 40 OF 61

 

POMONA PARK UTILITY SYSTEM - 443 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 41 OF 61

 

QUAIL RIDGE UTILITY SYSTEM - 578 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 42 OF 61

 

RIVER GROVE UTILITY SYSTEM - 442 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 43 OF 61

 

SILVER LAKE ESTATES/WESTERN SHORES UTILITY SYSTEM – 574/566 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 44 OF 61

 

SILVER LAKE OAKS UTILITY SYSTEM - 473 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 45 OF 61

 

SILVER LAKE OAKS UTILITY SYSTEM - 473 – PUTNAM COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 46 OF 61

 

SKYCREST UTILITY SYSTEM - 551 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 47 OF 61

 

ST. JOHN’S HIGHLANDS UTILITY SYSTEM - 471 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 48 OF 61

 

STONE MOUNTAIN UTILITY SYSTEM - 565 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

 

                                                                                                                                                                     schedule 2

                                                                                                                                                                     Page 49 OF 61

 

SUNNY HILLS UTILITY SYSTEM - 2801 – WASHINGTON COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$2,226,028	($0)		$2,226,028
LAND & LAND RIGHTS	10,779	(1)		10,779
CONSTRUCTION-WORK-IN-PROGRESS	45,161	(0)		45,161
PLANT HELD FOR FUTURE USE	12,938	(12,938)	31	0
ACQUISITION ADJUSTMENT (AA)	(188,733)	188,733	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(160,992)	0		(160,992)
ACCUMULATED DEPRECIATION	(993,223)	(8,392)	18,27,28	(1,001,615)
ACCUMULATED AMORTIZATION OF CIAC	64,349	(2,066)	20	62,283
ACCUMULATED AMORTIZATION OF AA	48,840	(48,840)	13	0
OTHER REGULATORY ASSET	15,467	19,101	23	34,568
TOTAL	$1,080,614	$135,597		$1,216,211

 

 

 

SUNNY HILLS UTILITY SYSTEM - 2801

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

302                         Franchises                                                                                   $       5,112                $(    2,168)

304                         Structures & Improvements-Supply                                $     39,586                $(    1,306)

307                         Wells & Springs                                                                         $     20,881                $(  13,141)

309                         Supply Mains                                                                              $       7,232                $(    3,112)

310                         Power Generation Equipment                                            $     66,436                $(  37,793)

311                         Pumping Equipment                                                                  $   101,342                $(101,342)

330                         Distribution Reservoirs                                                       $   206,317                $(146,783)

331                         Transmission & Distribution Mains                                  $1,587,154                 $(598,882)

333                         Services                                                                                        $     88,929                $(  44,425)

334                         Meters & Meter Installations                                           $     35,732                $(    8,794)

340                         Office Furniture & Equipment                                            $     15,389                $(  15,111)

341                         Transportation Equipment                                                 $     25,516                $(    5,826)

342                         Stores Equipment                                                                     $          194               $(       194)

343                         Tools, Shop & Garage Equipment                                       $       2,959                $(    2,959)

344                         Laboratory Equipment                                                         $       3,187                $(    2,197)

345                         Power Operated Equipment                                                 $          663               $(       663)

346                         Communications Equipment                                                $     11,548                $(  10,674)

347                         Miscellaneous Equipment                                                    $       7,851                $(    6,245)

 

                                                                                                                                                                                          

TOTAL                                                                                                                           $2,226,028                $(1,001,615)

                                                                                                                                                                     schedule 2

                                                                                                                                                                     Page 50 OF 61

 

SUNNY HILLS UTILITY SYSTEM - 2801 – WASHINGTON COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$609,746	$0		$609,746
LAND & LAND RIGHTS	4,483	0		4,483
CONSTRUCTION-WORK-IN-PROGRESS	0	0		0
PLANT HELD FOR FUTURE USE	5,442	(5,442)	31	0
ACQUISITION ADJUSTMENT (AA)	(78,973)	78,973	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(2,397)	0		(2,397)
ACCUMULATED DEPRECIATION	(433,327)	(2,727)	18 ,28	(436,054)
ACCUMULATED AMORTIZATION OF CIAC	1,231	170	20	1,401
ACCUMULATED AMORTIZATION OF AA	20,435	(20,435)	13	0
EXTRAORDINARY ABANDONMENT	0	0		0
OTHER REGULATORY ASSET	18,820	(8,910)	23	9,910
TOTAL	$145,460	$41,629		$187,089

 

 

SUNNY HILLS UTILITY SYSTEM - 2801 – WASHINGTON COUNTY

WASTEWATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

352                         Franchises                                                                                   $    3,990                  $(    1,731)

354                         Structures & Improvements                                                $  13,602                  $(    4,700)

355                         Power Generation Equipment                                             $  45,616                  $(  30,588)

360                         Collection Sewers –Force                                                    $    1,057                  $(       352)

361                         Collection Sewers -Gravity                                                $280,152                   $(187,147)

363                         Services                                                                                        $  53,006                  $(  38,612)

364                         Flow Measuring Devices                                                        $    1,703                  $(    1,362)

370                         Receiving Wells                                                                         $  14,429                  $(    4,937)

371                         Pumping Equipment                                                                  $  36,369                  $(  36,369)

380                         Treatment & Disposal Equipment                                      $ 125,163                  $( 110,886)

381                         Plant Sewers                                                                              $    6,495                  $(    2,939)

390                         Office Furniture & Equipment                                            $    6,441                  $(    6,147)

391                         Transportation Equipment                                                 $  10,677                  $(    1,497)

392                         Stores Equipment                                                                     $         81                                $(        81)

393                         Tools, Shop & Garage Equipment                                       $    1,238                  $(       882)

394                         Laboratory Equipment                                                         $    1,333                  $(       919)

395                         Power Operated Equipment                                                 $       277                                 $(       277)

396                         Communications Equipment                                                $    4,832                  $(    4,466)

397                         Miscellaneous Equipment                                                    $    3,285                  $(    2,162)

                                                                                                                                                                                          

TOTAL                                                                                                                           $609,746                   $(436,054)

                                                                                                                                                                     schedule 2

                                                                                                                                                                     Page 51 OF 61

 

TANGERINE UTILITY SYSTEM - 130 – ORANGE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$263,650	$1,102	1	$264,752
LAND & LAND RIGHTS	0	0		0
CONSTRUCTION-WORK-IN-PROGRESS	548	0		548
ACQUISITION ADJUSTMENT (AA)	129,006	(129,006)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(62,251)	0		(62,251)
ACCUMULATED DEPRECIATION	(106,278)	(7,308)	1, 18, 28	(113,585)
ACCUMULATED AMORTIZATION OF CIAC	32,954	2,832	19	35,786
ACCUMULATED AMORTIZATION OF AA	(12,898)	12,898	13	0
OTHER REGULATORY ASSET	0	0		0
TOTAL	$244,731	($119,482)		$125,251

 

 

 

TANGERINE UTILITY SYSTEM - 130

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

304                         Structures & Improvements                                                $    3,572                     $(    1,983)

307                         Wells & Springs                                                                         $  12,817                     $(    3,828)

309                         Supply Mains                                                                               $  10,110                     $(    8,182)

310                         Power Generation Equipment                                             $  43,408                     $(  11,061)

311                         Pumping Equipment                                                                  $  13,363                     $(    5,657)

320                         Water Treatment Equipment                                              $       750                    $(       750)

330                         Distribution Reservoirs                                                        $  27,724                     $(  22,465)

331                         Transmission & Distribution Mains                                  $126,273                     $(  46,069)

333                         Services                                                                                        $    7,477                     $(       466)

334                         Meter                                                                                             $  18,213                     $(  13,258)

335                         Hydrants                                                                                     $    1,045                     $         134

                                                                                                                                                                                          

TOTAL                                                                                                                           $264,752                     $(113,585)

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 52 OF 61

 

TOMOKA UTILITY SYSTEM – 1808 – VOLUSIA COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 53 OF 61

 

VALENCIA TERRACE UTILITY SYSTEM - 554 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 54 OF 61

 

VALENCIA TERRACE UTILITY SYSTEM - 554 – LAKE COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 55 OF 61

 

VENETIAN VILLAGE UTILITY SYSTEM - 567 – LAKE COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              Schedule 2

                                                                                                                                                              Page 56 OF 61

 

VENETIAN VILLAGE UTILITY SYSTEM - 567 – LAKE COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 57 OF 61

 

WELAKA/SARATOGA HARBOUR UTILITY SYSTEM – 447/448 – PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 58 OF 61

 

WOOTEN UTILITY SYSTEM - 446 - PUTNAM COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

 

 

 

 

                                                                                                                                                                     schedule 2

                                                                                                                                                                     Page 59 OF 61

 

ZEPHYR SHORES UTILITY SYSTEM - 1427 - PASCO COUNTY

WATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$223,388	$0		$223,388
LAND & LAND RIGHTS	4,896	0		4,896
CONSTRUCTION-WORK-IN-PROGRESS	127	0		127
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	30,620	(30,620)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(49,244)	0		(49,244)
ACCUMULATED DEPRECIATION	27,257	(19,681)	18, 40	7,576
ACCUMULATED AMORTIZATION OF CIAC	20,894	0		20,894
ACCUMULATED AMORTIZATION OF AA	(12,475)	12,475	13	0
OTHER REGULATORY ASSET	15,702	12,020	23	27,722
TOTAL	$261,164	($25,806)		$235,359

 

 

 

ZEPHYR SHORES UTILITY SYSTEM - 1427 - PASCO COUNTY

WATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

302                         Franchises                                                                                     $    1,061                 $(     381)

304                         Structures & Improvements                                                  $  38,978                $   8,927

307                         Wells & Springs                                                                           $    8,602                $   6,795

309                         Supply Mains                                                                                 $  23,475                $(  8,205)

311                         Pumping Equipment                                                                    $  22,136                $   9,289

320                         Water Treatment Equipment                                                $       738                $ 17,119

330                         Distribution Reservoirsipes                                                  $  63,092            $(  9,608)

331                         Transmission & Distribution Mains                                    $  34,450                $(14,294)

333                         Services                                                                                          $    2,015                $(    717)

334                         Meters & Meter Installations                                              $  28,841                $( 1,349)

                                                                                                                                                                                          

TOTAL                                                                                                                              $223,388                 $   7,576

                                                                                                                                                                     Schedule 2

                                                                                                                                                                     Page 60 OF 61

 

ZEPHYR SHORES UTILITY SYSTEM - 1427 –PASCO COUNTY

WASTEWATER RATE BASE AS OF JUNE 30, 2004

 

DESCRIPTION	PER UTILITY	ADJUSTMENT	REFER TO	PER STAFF
UTILITY-PLANT-IN-SERVICE	$297,457	$0		$297,457
LAND & LAND RIGHTS	44,384	0		44,384
CONSTRUCTION-WORK-IN-PROGRESS	0	0		0
PLANT HELD FOR FUTURE USE	0	0		0
ACQUISITION ADJUSTMENT (AA)	61,586	(61,586)	13	0
CONTRIBUTIONS-IN-AID-OF-CONSTRUCTION (CIAC)	(83,582)	0		(83,582)
ACCUMULATED DEPRECIATION	(59,323)	(56,825)	18, 22	(116,148)
ACCUMULATED AMORTIZATION OF CIAC	32,433	0		32,433
ACCUMULATED AMORTIZATION OF AA	(25,106)	25,106	13	0
EXTRAORDINARY ABANDONMENT (NET)	128,235	(128,235)	22	0
OTHER REGULATORY ASSET	53,673	(26,062)	23	27,611
TOTAL	$449,757	($247,602)		$202,155

 

 

 

ZEPHYR SHORES UTILITY SYSTEM - 1427

WASTEWATER PLANT & DEPRECIATION AS OF JUNE 30, 2004

 

			ACCUMULATED
		PLANT	DEPRECIATION
ACCT NO.	ACCOUNT NAME	BALANCE	BALANCE

 

351                         Organization                                                                               $    2,695             $(    777)

352                         Franchises                                                                                     $       503             $(     231)

360                         Collection Sewers -- Force                                                    $131,669              $(63,282)

361                         Collection Sewers -- Gravity                                                               $    3,349                              $(  1,263)

363                         Services                                                                                          $    1,304              $(     540) 

370                         Receiving Wells                                                                           $  29,781              $(17,662)

371                         Pumping Equipment                                                                    $128,156              $(32,393)

                                                                                                                                                                                          

TOTAL                                                                                                                             $297,457              $(116,148)

                                                                                                                                                              schedule 2

                                                                                                                                                              Page 61 OF 61

 

LAKE COUNTY UTILITY SYSTEM – LAKE COUNTY

GENERAL RATE BASE AS OF JUNE 30, 2004