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DATE: |
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TO: |
Office of Commission Clerk (Cole) |
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FROM: |
Office of the General Counsel (Brown) Division of Economic Regulation (Clapp, Kaproth, Slemkewicz, Walden) |
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RE: |
Docket No. 060433-WU – Application for certificate to operate water utility in Lake County by South Umatilla Water. |
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AGENDA: |
04/08/08 – Regular Agenda – Interested Persons May Participate |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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SPECIAL INSTRUCTIONS: |
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FILE NAME AND LOCATION: |
S:\PSC\GCL\WP\060433.RCM.DOC |
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On June 5, 2006, South Umatilla Water (South Umatilla or utility) filed an application for an original water certificate in Lake County. The utility, which has been providing water service since 1948 and serves 122 connections, had not requested certification from the Commission earlier because it believed it was exempt from regulation because of its size. The Florida Department of Environmental Protection (DEP) brought the utility to the Commission’s attention, and after consulting with staff the utility’s owner filed the June 5, 2006, application.
The application was deficient in numerous ways. Staff was attempting to work with the utility to correct the deficiencies, but the utility failed to respond to several requests for information. Ultimately, South Umatilla stopped communicating with staff altogether.
During the time staff was attempting to correct the application deficiencies, DEP initiated proceedings in Lake County against South Umatilla for failure to comply with DEP’s environmental requirements. DEP’s action culminated in a Consent Final Judgment, issued September 24, 2007, in which South Umatilla agreed to transfer all the utility property and assets to Lake County by October 1, 2007. (Attachment A) Lake County took over ownership and operation of the water system on October 1, 2007, and South Umatilla deeded the utility land to Lake County on February 14, 2008.
This recommendation addresses the disposition of South Umatilla’s outstanding certificate application. The Commission has jurisdiction over this matter pursuant to Sections 367.045, 367.071, and 367.022(2), Florida Statutes.
Discussion of Issues
Issue 1:
Should the Commission dismiss South Umatilla Water’s application for a certificate to operate a water facility in Lake County?
Recommendation: Yes. Since the utility facilities are now owned and operated by Lake County, South Umatilla’s application is moot, and the Commission should dismiss it. (Brown, Clapp)
Staff Analysis: As explained in the case
background above, Lake County took over ownership and operation of the South
Umatilla system on October 1, 2007, pursuant to the Consent Final Judgment
issued by the Fifth Judicial Circuit Court for Lake County. That event has rendered
the application for a certificate from the Commission moot. Lake County now owns the utility, and pursuant to Section 367.022(2), Florida Statutes, utility
systems owned, operated, managed, or controlled by governmental authorities are
exempt from Commission jurisdiction. Therefore, staff recommends that the
Commission should dismiss South Umatilla’s certificate application.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. Since the utility facilities are now owned and operated by Lake County, South Umatilla’s application is moot and the docket should be closed. (Brown, Clapp)
Staff Analysis: Since Lake County has taken over ownership and operation of the South Umatilla water system, the application for a certificate from the Commission is moot. Therefore, staff recommends that this docket should be closed.
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