DATE:	February 18, 2010
TO:	Office of Commission Clerk (Cole)
FROM:	Division of Economic Regulation (Johnson) Office of the General Counsel (Holley)
RE:	Docket No. 100037-WU – Application for transfer of water facilities to Florida Governmental Utility Authority, and cancellation of Certificate No. 149-W, by Virginia City Utility Company a Division of Community Utilities of Florida, Inc. County:  Pasco
AGENDA:	03/02/10 – Regular Agenda – Interested Persons May Participate
COMMISSIONERS ASSIGNED:			All Commissioners
PREHEARING OFFICER:			Administrative
CRITICAL DATES:			None
SPECIAL INSTRUCTIONS:			Related Docket Nos. 100033-WU, 100034-WU, 100035-WU, and 100036-WU should be considered sequentially
FILE NAME AND LOCATION:			S:\PSC\ECR\WP\100037.RCM.DOC

 

 Case Background

Virginia City Utility Company, a Division of Community Utilities of Florida, Inc., (Virginia City or utility) is a Class C water utility providing service to approximately 315 customers in Pasco County.  The utility is located in the Tampa Bay Water-Use Caution Area of the Southwest Florida Water Management District (SWFWMD).  The utility’s 2008 annual report shows gross revenue of $101,513 and a net operating loss of $17,592.  The utility was originally issued Certificate No. 149-W in 1973[1] and has been transferred twice.[2]

On January 20, 2010, Virginia City filed an application for transfer of the Virginia City water system to the Florida Governmental Utility Authority (FGUA) and cancellation of Certificate No. 149-W.  It should be noted that the agreement for purchase and sale of water assets submitted in this docket includes four utilities in addition to Virginia City.  The other dockets regarding sale of assets to FGUA that should be considered sequentially with this docket are Docket Nos. 100033-WU, 100034-WU, 100035-WU, and 100036-WU.  The Commission has jurisdiction pursuant to Section 367.071, Florida Statutes (F.S.).

 

Discussion of Issues

Issue 1: 

 Should the transfer of the water facilities of Virginia City Utility Company, a Division of Community Utilities of Florida, Inc., to the Florida Governmental Utility Authority be acknowledged, as a matter of right, and Certificate No. 149-W be cancelled?

Recommendation: 

 Yes.  The transfer of the Virginia City water territory and facilities to the Florida Governmental Utility Authority should be acknowledged, as a matter of right, pursuant to Section 367.071(4)(a), F.S., and Certificate No. 149-W should be cancelled effective December 23, 2009, which was the closing date of the sale.  (Johnson, Holley)

Staff Analysis: 

 Virginia City applied for a transfer of the Virginia City’s facilities and territory to FGUA on January 20, 2010, pursuant to Section 367.071, F.S., and Rule 25-30.037(4), Florida Administrative Code, (F.A.C.)  The FGUA has been determined to be a governmental authority in previous dockets.[3]  The closing on the sale of the utility facilities took place on December 23, 2009.  Therefore, December 23, 2009, is the effective date of the transfer.

Pursuant to Section 367.071(4)(a), F.S., the sale of facilities to a governmental authority shall be approved as a matter of right.  As such, no notice of the transfer is required and no filing fees apply.  The application is in compliance with Section 367.071(4)(a), F.S., and Rule 25-30.037(4), F.A.C.

The application contains a statement that the FGUA obtained Virginia City’s most recent income and expense statement, balance sheet, statement of rate base for regulatory purposes, and contributions-in-aid-of-construction, pursuant to Rule 25-30.037(4)(e), F.A.C.  In addition, a statement was provided that the customer deposits were transferred to FGUA and the accumulated interest on the deposits was distributed to the applicable customers.

The utility has filed all annual reports through 2008 and paid all regulatory assessment fees through December 23, 2009.  Because the utility was not jurisdictional as of December 31, 2009, no annual report is required to be filed for 2009.

Staff recommends that the transfer of the Virginia City water territory and facilities to FGUA should be acknowledged, as a matter of right, pursuant to Section 367.071(4)(a), F.S., and Certificate No. 149-W should be cancelled effective December 23, 2009, which was the closing date of the sale.

Issue 2: 

 Should this docket be closed?

Recommendation: 

 Yes.  If the Commission approves staff’s recommendation in Issue 1, this docket should be closed because no further action is necessary.  (Holley, Johnson)

Staff Analysis: 

 If the Commission approves staff’s recommendation in Issue 1, this docket should be closed because no further action is necessary.