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State of Florida
Public Service
Commission
Capital Circle Office Center 2540 Shumard
Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
Case Background
Rule 25-6.049, Florida
Administrative Code (F.A.C.), pertains to measuring electric service of
customers. Paragraph (5)(a) of the rule requires that condominium units be
individually metered by the utility. Individual metering was codified by rule
in the early 1980’s to promote energy conservation. Over the past several
years, the Commission granted ten waivers of Rule 25-6.049(5)(a) for
condominiums that are operated like hotels, referred to herein as “resort
condominiums.” These waivers allow resort condominiums to be master metered,
provided certain conditions are met. The Commission asked staff to investigate
whether a rule exempting such resort condominiums from the individual metering
requirement should be proposed. Staff recommends that Rule 25-6.049, F.A.C., be
amended to allow resort condominiums to be master metered under certain narrow
and strictly enforced conditions.
A Notice of Proposed Rule Development appeared in the March 19, 2004 issue of the Florida Administrative Weekly (FAW), and a Rule Development
Workshop was held April 13, 2004. Staff filed a Recommendation for the September 8, 2005 Agenda Conference, which was subsequently withdrawn by staff. A second
Notice of Proposed Rule Development was issued December 2, 2005, and a second Rule Development Workshop was held December 16, 2005. Comments from both workshops are summarized below. The Commission has jurisdiction pursuant to
Sections 366.05(1), 366.81 and 366.82, Florida Statutes.
Discussion
of Issues
Issue 1:
Should the Commission propose amendments to Rule 25-6.049,
Florida Administrative Code, allowing condominiums operated like hotels (resort
condominiums) to be master metered?
Recommendation:
Yes. (Harris/Kummer/Baxter/Hewitt/Fleming)
Staff Analysis:
Rule 25-6.049(5)(a),
F.A.C., requires that each occupancy unit of a building built after January 1, 1981, be individually metered by the utility. The rule then lists exceptions -
circumstances under which some premises may be master metered. This proposed
rule amendment adds resort condominiums to the list of exceptions. The text of
the proposed rule is contained in Attachment 1.
There are two reasons master metering may be appropriate
for resort condominiums: (1) Resort condominiums operate like hotels in that a
unit is typically rented for a short time period for an all inclusive price;
and (2) resort condominium owners prefer master metering because the ability to
take service on a commercial rate is generally less costly than taking service
on a residential rate which would otherwise apply to a condominium.
Rule 25-6.049 requires occupancy units to be individually
metered because individual metering promotes energy conservation. However, individual
metering only promotes energy conservation when the occupants of the unit are
directly responsible for the energy they consume. This requires that they pay
for electricity separately or otherwise see a direct impact on their costs for
usage. Individual metering does not enhance conservation in temporarily
occupied units, such as hotels, because the occupant is not subject to price
signals related to energy consumption. The hotel guest pays the same room rate
regardless of how much energy he or she uses. Likewise, occupants of resort
condominiums are not subject to price signals from energy consumption, so long
as the condominium is operated like a hotel. If a resort condominium operates
like a hotel, there is no conservation justification for metering or charging
for their electricity any differently than for a hotel.
The primary reason the Commission has received multiple
rule waiver requests is resort condominium management companies often prefer
master metered service because it is less expensive and less administratively
burdensome than individually metered service. Rather than handling several
hundred individual bills, they prefer one centralized bill. In addition,
individually metered units are served under the utility’s residential rate
schedule, and each unit is billed a residential customer charge in addition to
the energy charge. When a building is master metered, it is served under a
commercial rate schedule, and only one bill is rendered, with a single customer
charge. Not only are construction costs lower due to the installation of fewer
meters but the commercial energy rate is typically lower than the residential
rate, so the total bill may be lower.
Concern arises because resort condominiums differ from
hotels in one important aspect. Each unit is owned by an individual, and has
the design and amenities needed for permanent occupancy. Thus, any unit could
at any time become permanently occupied, regardless of its metering. It is
very important to ensure that all or substantially all of the units in a resort
condominium be occupied transiently for as long as master metering is in place,
otherwise the energy conservation goals of Rule 25-6.049 will not be realized.
Proposed Criteria
The proposed criteria for qualifying for an exemption from
individual metering for resort condominiums are found in newly proposed Subsections
25-6.049(5)(g) and (6). The exemption would only apply when the following
criteria, set out in subsection (5)(g), are met:
1.
The declaration of condominium requires that at least 95% of the units
are used solely for overnight occupancy;
2.
A registration desk, lobby and central switchboard are maintained; and
3.
A record is kept for each unit showing check-in and check-out times for
each unit.
In determining the percentage of rooms allowed to be
permanently occupied, staff considered the waivers of Rule 25-6.049 granted by
the Commission. A table summarizing the rule waivers is contained in
Attachment 2. In those waivers, the percentage of rooms allowed to be
permanently occupied ranged from 0.7% to 7.6%, and averaged 3.92%. These
numbers apply to existing individually metered condominiums that changed their
mode of operation to become resort condominiums and wanted to convert to master
metering. For new buildings that were to be operated as resort condominiums
from the start, percentages could not be calculated because the developers did
not know how many units would be occupied transiently. Waivers granted in
these cases, however, required “that all or substantially all” of the units be
occupied on a temporary basis.
It appears that resort condominiums require a small
percentage of the rooms to be permanently occupied for certain maintenance and
management personnel. Based on the waivers previously granted by the
Commission and the reasons for permanent occupancy, staff believes that a
requirement that at least 95% of the rooms be used for overnight occupancy
serves the needs of resort condominiums and ensures that the conservation aims
of the rule are fulfilled.
The first criterion requires that the declaration of
condominium include a provision that a minimum of 95% of the units be used for
overnight occupancy. The declaration of condominium is the instrument by which
a condominium is created. The condominium is created when the declaration is
recorded in the public records of the county in which the property is located.
Any amendments to the declaration must be approved by the unit owners, and also
must be recorded in the public records. Requiring that the 95% criterion be
stated in the declaration ensures that compliance with this requirement is
easily verifiable by the utility and that the unit owners are aware that the
units cannot be permanently occupied unless the declaration is amended.
Criteria 2 and 3 were added because a condominium operated
like a hotel would require a mechanism to register guests and record the
duration of their stay. Compliance with these criteria can also be easily
checked by the utility. Because the utilities are responsible for ensuring that
they only provide master-metered service to condominiums that satisfy the above
three criteria, it was important to the utilities that the mechanism to assess
compliance be as straightforward as possible.
The proposed new subsection (6) of the rule sets out the
procedure for initially qualifying for master-metered service, the ongoing
compliance requirements, and the penalty for failure to comply. Subsection
(6)(a) states that to initially qualify for master-metered service, the owner
or developer of the condominium, the condominium association, or the customer
must attest to the utility that the criteria in subsection (5)(g) are or will
be met. This saves the utility from having to do on-site inspections.
However, this subsection provides that the utility is allowed to inspect the
property to determine if it complies with the above three criteria. In addition,
the attestation must state that the cost of a future conversion to individual
metering, if required, will be borne by the customer. Finally, the subsection
states that if the criteria in subsection (5)(g) are not met, then the utility
shall not provide master-metered service.
Subsection (6)(b) sets out the requirements for ongoing
compliance. It requires that the customer attest annually that the resort
condominium meets the criteria in subsection (5)(g), and that the customer
notify the utility within 10 days if it ceases to meet the criteria.
Subsection (6)(c) allows the utility to inspect the condominium to determine if
it complies with the requirements of this rule.
Subsection (6)(d) governs a resort condominium’s failure
to comply with the requirements of the rule. If a resort condominium that is
master-metered under this rule fails to meet the criteria in subsection (5)(g)
or fails to make the annual attestation required by subsection (6)(b), the
utility must notify the customer that it is no longer eligible for
master-metered service. The customer then has 30 days to demonstrate that it
is in compliance. If the customer does not demonstrate compliance within 30
days, then it has six months to individually meter the condominium. During
this six-month period, the utility cannot discontinue service. If the building
is not individually metered within six months, the provisions of Rule 25-6.105,
governing discontinuation of service, apply. Rule 25-6.105(5)(a) provides that
a utility may discontinue service for violation of a state regulation.
In addition to the requirements for master metering resort
condominiums, staff is proposing a minor clarification to the effective date of
the individual metering requirements set forth in Rule 25-6.049(5). The proposed
amendment makes clear that individual metering of occupancy units in commercial
establishments, multi-unit residential buildings, marinas, and trailer, mobile
home or recreational vehicle parks, is not required when the construction
permit was received before January 1, 1981, and the occupancy units have been
master metered continuously since that date.
Staff is proposing another technical change, moving the
definition of the term “cost” from Subsection 5(b)(4) of the current rule to
the end of re-numbered Subsection 9(a) (page 7, lines 15-21 in Attachment A).
The purpose of this move is to clarify that only
actual electricity usage charges can be collected by the customer of
record of the master meter from the owners of the individual occupancy units,
and is not intended to have broader applicability.
Workshop
Comments
An initial Rule
Development Workshop was held on April 13, 2004. Following the Workshop, Post-Workshop Comments were submitted by Florida Power & Light Company, Gulf
Power Company, and Tampa Electric Company (the “Utilities”). The comments
generally approved of staff’s proposed rule, while suggesting a number of
technical changes
The Utilities
submitted a second set of Post-Workshop Comments on October 18, 2004. Additional suggestions included adding the proposed Subsection (6) of the draft
rule. In particular, the Utilities suggested that the applicant provide
initial certification that the proposed resort condominium project met the
requirements of the rule, and the requirement for annual updates that the
project continues to comply with the rule. The intent of these changes was to
ensure that the rule was clear that the burden of demonstrating compliance with
the rule rested on the applicant, not the Utilities. These comments were
incorporated into staff’s proposed rule as Subsections 6(a) and 6(b).
On September 8, 2005, staff filed a Recommendation that the Commission propose amendments to
Rule 25-6.049, F.A.C. The Recommendation was scheduled for the Commission’s
consideration at the September 20, 2005 Agenda Conference. Subsequent to the
filing of the Recommendation, staff was contacted by Mr. Marc Mazo, Senior
Partner with Power Check Consultants. Mr. Mazo represented that he had only
become aware of the proposed rule amendments with the filing of the
Recommendation, and had a number of comments and suggestions. Due to the
nature of the comments Mr. Mazo presented, staff determined that the
Recommendation should be withdrawn, and a second Rule Development Workshop should
be scheduled. A second Notice of Rule Development was published in the FAW,
and a second Rule Development Workshop was held on December 16, 2005.
At the December 16, 2005 workshop, Mr. Mazo presented a number of comments. It appears that the
bulk of Mr. Mazo’s comments addressed one central theme. Mr. Mazo believed
that the 95% occupancy requirement in the Declaration of Condominium is not
only unrealistic, but presents a serious threat to the ability of these types
of projects to be developed. Mr. Mazo represented that placing such a
requirement in the Declaration would convert the project from a real estate
purchase into an investment security, which would require the project comply
with Securities and Exchange Commission (SEC) requirements regarding the sale
of securities. For example, Mr. Mazo believed these projects would have to be
sold through securities brokers, not real estate agents.
Following the workshop,
both Mr. Mazo and the Utilities submitted Post-Workshop Comments. Mr. Mazo
reiterated his belief that the 95% transient occupancy rate was too high,
suggesting instead a 75% rate. Mr. Mazo proposes additional criteria be
included in Subsection 5(g), which he believes would tend to ensure the resort
condominium was being operated similarly to a hotel. Mr. Mazo suggests adding criteria
that the resort condominium maintain a PBX or Central Switchboard; maintain
comprehensive rental records; employ a professional on-site manager or
professional management company; and engage in regular advertising to the
general public. Mr. Mazo believes that these activities are only engaged in by
resort condominiums that are operated primarily as hotels, and would not take
place in a resort condominium that has significant permanent occupancy.
The Utilities’
comments strongly supported the 95% occupancy requirement. The Utilities
further requested that language be added to the proposed rule to make clear
that the Utilities had no duty to conduct mandatory inspections of the
projects, and that the projects should be wired for individual metering at the
time of construction/conversion, so that a future conversion from master
metering to individual metering could be accomplished more easily.
Staff has carefully
considered the post-workshop comments, and does not recommend the attached Rule
be changed in any way. Despite requests from staff and the Utilities, Mr. Mazo
did not produce the letter ruling from the SEC which he relies upon for his
argument that a 95% transient occupancy requirement in the Declaration of
Condominium will convert the project from real estate to an investment
security. Since neither staff nor the Utilities could independently examine
and verify the position of the SEC, staff cannot recommend modification of the
95% transient occupancy requirement.
Further, in Staff’s
opinion, Mr. Mazo’s additional criteria for Subsection 5(g) are already covered
by the three criteria staff proposes, and do not add any additional security
that substantially all of the occupancy units will be used for transient
occupancy only. Staff agrees Mr. Mazo’s criteria would indicate the resort
condominium has some hotel-like operations. Staff does not agree that Mr.
Mazo’s additional criteria would guarantee that the majority of occupancy units
in a resort condominium were being transiently occupied. Staff believes Mr.
Mazo’s 75% transient occupancy threshold is too low to comply with the intent
of the rule. The 95% occupancy requirement is integral to accomplishing the
purpose of the metering rule, namely, to promote conservation and only allow exemptions
from individual metering for resort condominiums which are operated in the same
manner as hotels.
Staff also does not
believe the rule should include an explicit statement that the Utilities have no
duty to inspect the developments. Staff believes the phrase “shall be allowed
to inspect” in Subsections 6(a) and 6(c) makes clear that inspections are an
option for the utility to verify compliance, not a requirement of the rule.
Staff also disagrees that the rule should include a requirement that the
project developer make the up-front investment to wire units for individual
meters. By virtue of this rule, developers will be aware of the need to resume
individual metering if they fail to comply with this rule, and may plan
accordingly.
Statutory
authority
The specific authority for this rule derives from Section
366.05(1), Florida Statutes, which allows the Commission to adopt rules to
implement and enforce the provisions of Chapter 366. The laws implemented are
Section 366.05(1), which gives the Commission power to prescribe service rules and
classifications to be observed by each public utility, and Sections 366.81 and 366.82
which address reducing the growth rate of energy consumption.
Statement of
estimated regulatory costs
The proposed
rule amendments should make Commission policy on master-metered
condominiums clear and the qualifying process more efficient and less time
consuming. Utilities would have less cost for customer billing but a likely
net decrease in revenues because of the lower commercial billing rate.
The Commission
would benefit from fewer rule waiver requests with a decrease in the time and
effort involved. The total cost savings are unknown. The full Statement of
Estimated Regulatory Costs is contained in Attachment 3.
Issue 2: Should
Docket No. 990188-EI, the Commission’s generic investigation docket, be closed?
Recommendation:
Yes. The rule amendment recommended in Issue 1 addresses all the changes that
should be made to the rule at this time, and therefore the generic
investigation should be closed. (Fleming, Harris)
Staff Analysis: Docket
No. 990188-EI, entitled a Generic Investigation into Requirement for Individual
Electric Metering by Investor-owned Electric Utilities Pursuant to Rule
25-6.049(5)(a), F.A.C., was opened by staff on February 18, 1999, at the direction of the Commission. At the time the investigation was opened, several
issues had arisen regarding the interpretation and applicability of the rule. The
purpose of the generic docket was to examine those issues. Since that time,
based on the staff workshops and continuing monitoring of activity with regard
to Rule 25-6.049(5)(a), F.A.C., staff formulated the rule amendment proposed
herein, which staff believes addresses all the changes that should be made to
the rule at this time. Staff therefore recommends that the generic
investigation be closed.
Issue 3: Should Docket
No. 050152-EI, this rulemaking docket, be closed?
Recommendation: Yes,
if no comments or requests for hearing are filed, the rule as proposed should
be filed for adoption with the Secretary of State and the docket should be
closed. (Harris, Fleming)
Staff Analysis:
Unless comments or requests for hearing are filed, the rule as proposed may be
filed for adoption with the Secretary of State without further action by the
Commission. The docket may then be closed.
25‑6.049 Measuring Customer
Service.
(1) All energy sold to customers
shall be measured by commercially acceptable measuring devices owned and
maintained by the utility, except where it is impractical to meter loads, such
as street lighting, temporary or special installations, in which case the
consumption may be calculated, or billed on demand or connected load rate or as
provided in the utility's filed tariff.
(2) When there is more than one
meter at a location the metering equipment shall be so tagged or plainly marked
as to indicate the circuit metered. Where similar types of meters record
different quantities, (kilowatt‑hours and reactive power, for example),
metering equipment shall be tagged or plainly marked to indicate what the
meters are recording.
(3) Meters which are not direct
reading shall have the multiplier plainly marked on the meter. All charts taken
from recording meters shall be marked with the date of the record, the meter
number, customer, and chart multiplier. The register ratio shall be marked on
all meter registers. The watt‑hour constant for the meter itself shall be
placed on all watt‑hour meters.
(4) Metering equipment shall not
be set "fast" or "slow" to compensate for supply
transformer or line losses.
(5)(a) Individual
electric metering by the utility shall be required for each separate occupancy
unit of new commercial establishments, residential buildings, condominiums,
cooperatives, marinas, and trailer, mobile home and recreational vehicle
parks. However, individual metering shall not be required for any such
occupancy unit for which a construction permit was issued before,
and which has received master-metered service continuously since, is
commenced after January 1, 1981. In addition, Iindividual
electric meters shall not, however, be required:
1.(a) In
those portions of a commercial establishment where the floor space dimensions
or physical configuration of the units are subject to alteration, as evidenced
by non‑structural element partition walls, unless the utility determines that
adequate provisions can be made to modify the metering to accurately reflect
such alterations;
2.(b) For
electricity used in central heating, ventilating and air conditioning systems,
or electric back up service to storage heating and cooling systems;
3.(c) For
electricity used in specialized‑use housing accommodations such as hospitals,
nursing homes, living facilities located on the same premises as, and operated
in conjunction with, a nursing home or other health care facility providing at
least the same level and types of services as a nursing home, convalescent
homes, facilities certificated under Chapter 651, Florida Statutes, college
dormitories, convents, sorority houses, fraternity houses, motels, hotels,
and similar facilities;
(d) For lodging
establishments such as hotels, motels, and similar facilities which are rented,
leased, or otherwise provided to guests by an operator providing overnight
occupancy as defined in subparagraph (8)(b).
4(e) For
separate, specially‑designated areas for overnight occupancy, as defined in
subparagraph (8)(b), at trailer, mobile home and recreational vehicle parks
and marinas where permanent residency is not established.
5(f) For
new and existing time‑share plans, provided that all of the occupancy units
which are served by the master meter or meters are committed to a time‑share
plan as defined in Section 721, Florida Statutes, and none of the occupancy
units are used for permanent occupancy. When a time‑share plan is converted
from individual metering to master metering, the customer must reimburse the
utility for the costs incurred by the utility for the conversion. These costs
shall include, but not be limited to, the undepreciated cost of any existing
distribution equipment which is removed or transferred to the ownership of the
customer, plus the cost of removal or relocation of any distribution equipment,
less the salvage value of any removed equipment.
(g) For
condominiums that meet the following criteria:
1. The declaration of
condominium requires that at least 95 percent of the units are used solely for
overnight occupancy as defined in subparagraph (8)(b) of this rule;
2. A registration desk, lobby
and central telephone switchboard are maintained; and,
3. A record is kept for each
unit showing each check-in and check-out date for the unit, and the name (s) of
the individual(s) registered to occupy the unit between each check-in and
check-out date.
(6) Master-metered
condominiums
(a) Initial Qualifications -
In addition to the criteria in subsection (5)(g), in order to initially qualify
for master-metered service, the owner or developer of the condominium, the
condominium association, or the customer must attest to the utility that the
criteria in subsection (5)(g) and in this subsection have been met, and that
any cost of future conversion to individual metering will be the responsibility
of the customer, consistent with paragraph (7) of this rule. Upon request and
reasonable notice by the utility, the utility shall be allowed to inspect the
condominium to collect evidence needed to determine whether the condominium is
in compliance with this rule. If the criteria in subsection (5)(g) and in this
subsection are not met, then the utility shall not provide master-metered
service to the condominium.
(b) Ongoing Compliance - The
customer shall attest annually, in writing, to the utility that the condominium
meets the criteria for master metering in subsection (5)(g). The utility shall
establish the date that annual compliance materials are due based on its
determination of the date that the criteria in subsections (5)(g) and (6)(a) were
initially satisfied, and shall inform the customer of that date before the
first annual notice is due. The customer shall notify the utility within 10
days if, at any time, the condominium ceases to meet the requirements in
subsection (5)(g).
(c) Upon request and
reasonable notice by the utility, the utility shall be allowed to inspect the
condominium to collect evidence needed to determine whether the condominium is
in compliance with this rule.
(d) Failure to comply - If a
condominium is master metered under the exemption in this rule and subsequently
fails to meet the criteria contained in subsection 5(g), or the customer fails
to make the annual attestation required by subsection (6)(b), then the utility
shall promptly notify the customer that the condominium is no longer eligible
for master-metered service. If the customer does not respond with clear
evidence to the contrary within 30 days of receiving the notice, the customer
shall individually meter the condominium units within six months following the
date on the notice. During this six month period, the utility shall not
discontinue service based on failure to comply with this rule. Thereafter, the
provisions of Rule 25-6.105 apply.
(7) When a structure or
building is converted from individual metering to master metering, or from
master metering to individual metering, the customer shall be responsible for
the costs incurred by the utility for the conversion. These costs shall
include, but not be limited to, any remaining undepreciated cost of any
existing distribution equipment which is removed or transferred to the
ownership of the customer, plus the cost of removal or relocation of any
distribution equipment, less the salvage value of any removed equipment.
(b)(8) For purposes
of this rule:
1. (a) "Occupancy
unit" means that portion of any commercial establishment, single and multi‑unit
residential building, or trailer, mobile home or recreational vehicle park, or
marina which is set apart from the rest of such facility by clearly determinable
boundaries as described in the rental, lease, or ownership agreement for such
unit.
2. The
construction of a new commercial establishment, residential building, marina,
or trailer, mobile home or recreational vehicle park shall be deemed to commence
on the date when the building structure permit is issued.
3.(b) "Overnight
Occupancy" means use of an occupancy unit for a short term such as per day
or per week where permanent residency is not established.
4. The term
"cost", as used herein means only those charges specifically
authorized by the electric utility's tariff, including but not limited to the
customer, energy, demand, fuel, and conservation charges made by the electric
utility plus applicable taxes and fees to the customer of record responsible
for the master meter payments. The term does not include late payment charges,
returned check charges, the cost of the distribution system behind the master
meter, the cost of billing, and other such costs.
(6)(9)(a)
Where individual metering is not required under Subsection (5) and master
metering is used in lieu thereof, reasonable apportionment methods, including
sub‑metering may be used by the customer of record or the owner of such
facility solely for the purpose of allocating the cost of the electricity
billed by the utility. The term "cost" as used herein means only
those charges specifically authorized by the electric utility's tariff,
including but not limited to the customer, energy, demand, fuel, conservation,
capacity and environmental charges made by the electric utility plus applicable
taxes and fees to the customer of record responsible for the master meter
payments. The term does not include late payment charges, returned check
charges, the cost of the customer-owned distribution system behind the master
meter, the customer of record’s cost of billing the individual units, and other
such costs.
(b) Any fees or
charges collected by a customer of record for electricity billed to the
customer's account by the utility, whether based on the use of sub‑metering or
any other allocation method, shall be determined in a manner which reimburses
the customer of record for no more than the customer's actual cost of
electricity.
(c) Each utility
shall develop a standard policy governing the provisions of sub‑metering as
provided for herein. Such policy shall be filed by each utility as part of its
tariffs. The policy shall have uniform application and shall be
nondiscriminatory.
Specific Authority 366.05(1) FS.
Law Implemented 366.05(1), 366.05(3),
366.80, 366.81, and 366.82, FS.
History‑‑Amended 7‑29‑69, 11‑26‑80,
12‑23‑82, 12‑28‑83, Formerly 25‑6.49, Amended 7‑14‑87, 10‑5‑88, 3/23/97.
Rule 6.049 draft text.mks.doc
WAIVERS OF MASTER
METERING REQUIREMENTS
RULE
25-6.049(5)(A), FLORIDA ADMINISTRATIVE CODE
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
Holiday Villas (HV)
|
980667
|
72 total
2 occupied permanently (2.7%)
|
Conversion
|
* Effective so long as
condominium is operated and licensed pursuant to Section 509.242(1), F.S.
* At time no longer so operated
and licensed, Holiday Villas must contact utility and utility will install
individual meters on all occupancy units.
|
|
Sundestin
|
001543
|
280 total
2 occupied permanently (0.7%)
|
Conversion
|
* Sundestin must allocate the
cost of electricity to the individual unit owners using the reasonable
apportionment method (Rule 25-6.049(6)(a), F.A.C.)
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility.
* At time no longer so operated
and licensed, Sundestin must immediately inform utility and utility will
install individual meters on all occupancy units.
* Sundestin shall reimburse
utility for costs the utility incurs due to the conversion to master metering,
including costs of relocating or removing utility equipment.
|
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
Dunes of Panama (DP)
|
001544
|
274 total
21 occupied permanently (7.6%)
|
Conversion
|
* DP allocates the cost of
electricity to the individual unit owners using the reasonable apportionment
method (Rule 25-6.049(6)(a), F.A.C.)
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility.
* At time no longer so operated
and licensed, DP must immediately inform utility and utility will install
individual meters on all occupancy units.
* DP shall reimburse utility
for costs the utility incurs due to the conversion to master metering,
including costs of relocating or removing utility equipment.
|
|
18001 Collins Avenue Condo Association (CCA)
|
020944
|
400 total
20 occupied permanently (5.0%)
|
Conversion
|
* CCA allocates the cost of
electricity to the individual unit owners using the reasonable apportionment
method (Rule 25-6.049(6)(a), F.A.C.)
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility.
* At time no longer so operated
and licensed, CCA must immediately inform utility and utility will install
individual meters on all occupancy units
|
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
Luxury Resorts (LRI)
|
021005
|
129 total
Won’t know number to be permanently occupied until after
closing on all units
|
New
|
* LRI must allocate the cost
of electricity to the individual unit owners using the reasonable
apportionment method (Rule 25-6.049(6)(a), F.A.C.)
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility.
* At time no longer so operated
and licensed, CCA must immediately inform utility and utility will install
individual meters on all occupancy units.
* In event of conversion to
individual metering, Atlantic will be solely responsible for cost of
conversion.
* Effective only so long as
all or substantially all of the units are operated on a transient basis.
* Must file a report with
Commission 12 months after the date of closing on the sale of the first unit.
Report must include number of units sold, number of units participating in
voluntary rental program.
* Waiver shall continue until
the Commission acts otherwise, and so long as LRI continues to be operated
and licensed as a transient occupancy facility.
|
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
Fontainebleau II
|
030557
|
463 total
Won’t know number to be permanently occupied until after
closing on all units
|
New
|
* Fontainebleau must allocate
the cost of electricity to the individual unit owners using the reasonable
apportionment method (Rule 25-6.049(6)(a), F.A.C.)
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility or
until Commission acts otherwise.
* At time no longer so operated
and licensed, Fontainebleau must immediately inform utility and utility must
install individual meters on all occupancy units.
* In event of conversion to
individual metering, Fontainebleau will be solely responsible for cost of
conversion.
* Effective only so long as
all or substantially all of the units are operated on a transient basis.
* Must file a report with
Commission 12 months after the date of closing on the sale of the first unit.
Report must include number of units sold, number of units participating in
voluntary rental program.
|
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
St. Maarten at Silver Shell Condo Assoc.
(St. Maarten)
|
030974
|
102 total
2 occupied permanently (1.9%)
|
Conversion
|
* St. Maarten must allocate
the cost of electricity to the individual unit owners using the reasonable
apportionment method (Rule 25-6.049(6)(a), F.A.C.)
* St. Maarten is responsible
for all of the costs associated with the conversion from individual to master
metering.
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility or
until Commission acts otherwise.
* At time no longer so operated
and licensed, St. Maarten must immediately inform utility and utility must
install individual meters on all occupancy units.
* In event of conversion to
individual metering, St. Maarten will be solely responsible for cost of
conversion.
* Effective only so long as
all or substantially all of the units are operated on a transient basis.
|
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
Jetty East Condominium Assoc. (JECA)
|
040525
|
198 total
8 occupied permanently (4.0%)
|
Conversion
|
* JECA must allocate the cost
of electricity to the individual unit owners using the reasonable
apportionment method (Rule 25-6.049(6)(a), F.A.C.
* JECA is responsible for all
of the costs associated with the conversion from individual to master
metering.
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility or
until Commission acts otherwise.
* At time no longer so operated
and licensed, JECA must immediately inform utility and utility must install
individual meters on all occupancy units.
* In event of conversion to
individual metering, JECA will be solely responsible for cost of conversion.
* Effective only so long as
all or substantially all of the units are operated on a transient basis.
|
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
Coastal Blue d/b/a Seychelles
|
040762
|
197 total
Won’t know number to be permanently occupied until after
closing on all units
|
New
|
Coastal Blue must allocate the
cost of electricity to the individual unit owners using the reasonable
apportionment method (Rule 25-6.049(6)(a), F.A.C.
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility or
until Commission acts otherwise.
* At time no longer so operated
and licensed, Seychelles must immediately inform utility and utility must
install individual meters on all occupancy units.
* In event of conversion to
individual metering, Seychelles will be solely responsible for cost of
conversion.
* Effective only so long as
all or substantially all of the units are operated on a transient basis.
|
|
NAME OF DEVELOPER
|
DOCKET NO.
|
TOTAL UNITS
|
NEW/
CONVERSION
|
CONDITIONS IMPOSED BY COMMISSION
|
|
Beach House Owners Association, Inc.
(BHOA)
|
050010
|
106 total
6 occupied permanently (5.6%)
|
Conversion
|
* BHOA must allocate the cost
of electricity to the individual unit owners using the reasonable
apportionment method (Rule 25-6.049(6)(a), F.A.C.
* BHOA is responsible for all
of the costs associated with the conversion from individual to master
metering.
* Effective only so long as the
condominium is operated and licensed as a transient occupancy facility or
until Commission acts otherwise.
* At time no longer so operated
and licensed, BHOA must immediately inform utility and utility must install
individual meters on all occupancy units.
* In event of conversion to
individual metering, BHOA will be solely responsible for cost of conversion.
* Effective only so long as
all or substantially all of the units are operated on a transient basis.
|
State of Florida
Public Service Commission
Capital Circle Office Center ● 2540 Shumard Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
|
|
|
DATE:
|
June 30, 2005
|
|
TO:
|
Office of General Counsel (Stern)
|
|
FROM:
|
Division of Economic Regulation
(Hewitt)
|
|
RE:
|
Statement of Estimated Regulatory
Costs for Proposed Amendments to Rule 25-6.049, F.A.C., Measuring Customer
Service
|
SUMMARY OF THE RULE
Rule 25-6.049, F.A.C., contains the requirements
for measuring energy delivered to electricity customers. Individual electric
metering is required for each separate occupancy unit of any new customers
except for certain situations or specialized-use housing such as nursing homes,
hotels, and college dormitories.
The proposed rule amendments would clarify and
expand what type of short term dwelling qualifies for master-metering. Because
the Commission has been approving waivers to the rule for condominiums that
meet certain criteria, the rule amendments would extend the transient lodging
exemption to condominiums that are used for short term overnight occupancy.
Criteria for master-metering would be included in the rule and reporting
requirements added, consistent with language included in the rule waivers.
ESTIMATED NUMBER OF
ENTITIES REQUIRED TO COMPLY AND
GENERAL DESCRIPTION OF
INDIVIDUALS AFFECTED
All five electric
investor owned utilities (IOUs) and parties interested in installing
master-metering for condominiums would be affected by the proposed rule
changes.
RULE IMPLEMENTATION AND
ENFORCEMENT COST AND IMPACT ON REVENUES
FOR THE AGENCY AND OTHER
STATE AND LOCAL GOVERNMENT ENTITIES
The Commission would benefit
because there would be less time spent processing meter rule waiver requests
for condominiums intended for transient guests. There should be no impact on
agency revenues.
There should be no negative impact
on other state and local government entities.
ESTIMATED TRANSACTIONAL
COSTS TO INDIVIDUALS AND ENTITIES
IOUs would have reduced
customer billing costs for a master-metered facility, but would have reduced
net revenues from due to a lower commercial class billing rate for the facility
and reduced customer charge revenues. IOUs would have initial monitoring costs
to ensure compliance with requirements for new and converted master-metered
facilities and on-going annual costs to ensure future compliance. The
utilities that would be affected have not indicated that there would be any
significant cost issue from the proposed rule. Their total costs would depend
on the size of the projects master-metered and the total number of projects each
year.
Entities interested in
master-metering condominiums currently appear before the Commission seeking
rule waivers and incur costs in doing so. The proposed rule changes would
codify Commission policy of allowing master-metering of condominiums under
certain conditions, and should decrease the cost of seeking waivers by some
unknown amount. Entities that individually meter their structures would bear
the costs of converting to master-metering. If in the future, they fail to
meet the standards for master-metering, they would bear the cost of converting
back to individual metering, consistent with requirements and rule waivers
granted.
IMPACT ON SMALL BUSINESSES, SMALL CITIES, OR
SMALL COUNTIES
There should be a benefit
to the unregulated small businesses that qualify for master-metering with no
negative impacts on small cities, or small counties.
CH:kb
cc: Mary Andrews Bane
Chuck Hill
David Wheeler
Hurd Reeves