Recommendation

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DATE:	July 20, 2012
TO:	Office of Commission Clerk (Cole)
FROM:	Division of Accounting and Finance (Fletcher, Maurey) Office of the General Counsel (Murphy, Teitzman)
RE:	Docket No. 110260-WS – Application for staff-assisted rate case in Lee County by Useppa Island Utility, Inc.
AGENDA:	08/02/12 – Regular Agenda – Proposed Agency Action - Interested Persons May Participate
COMMISSIONERS ASSIGNED:		All Commissioners
PREHEARING OFFICER:		Brisé
CRITICAL DATES:		01/28/13 (15-Month Effective Date SARC)
SPECIAL INSTRUCTIONS:		None
FILE NAME AND LOCATION:		S:\PSC\AFD\WP\110260.RCM.DOC

Case Background

Useppa Island Utility, Inc. (Useppa or Utility) is a Class C water and wastewater utility currently providing service to approximately 144 water and 138 wastewater customers on Useppa Island in Lee County off the coast of North Fort Myers. There is no bridge to the island and the island covers approximately 100 acres. The Utility serves a membership of clients known as the Useppa Island Club. Members of the Useppa Island Club visit the island for vacations, holidays, and special events, which results in a seasonal customer base. Useppa is located in the South Florida Water Management District (SFWMD or District) in a critical use county on environmentally sensitive land. The Utility’s 2010 annual report shows combined operating revenues of $318,968, operating expenses of $318,808, and net operating income of $160. The Utility is a wholly-owned subsidiary of the Useppa Inn and Dock Company.

Useppa was granted Certificate Nos. 354-W and 310-S in 1982.[1] The Commission last established rates for Useppa in 2007.[2] On August 29, 2011, Useppa filed an application for a staff-assisted rate case (SARC) and paid the appropriate filing fee. On February 29, 2012, a customer meeting was held on Useppa Island in which approximately 45 people attended and 10 people spoke.

On May 31, 2012, Useppa and the Useppa Island POA, Inc. (Property Owners Association or POA) (collectively, “Parties”) filed a Joint Motion Requesting Commission Approval of Settlement Agreement (Joint Motion). The Joint Motion is incorporated in this recommendation as Attachment A.

This recommendation addresses the Parties’ Stipulation and Settlement Agreement. The Commission has jurisdiction pursuant to Sections 367.081, 367.121, and 367.0814 Florida Statutes.

Discussion of Issues

Issue 1:

Should the Commission approve the Joint Motion requesting Commission approval of Settlement Agreement?

Recommendation: Yes. The Joint Motion requesting approval of the Settlement Agreement should be approved. The Utility should file a proposed customer notice and revised tariff sheets consistent with the Commission’s decision within 15 days of the Commission vote. The approved rates should be effective for service rendered on or after the stamped approval date of the tariff pursuant to Rule 25-30.475(1), F.A.C., after staff has verified that the proposed customer notice is adequate and the notice has been provided to the customers. The Utility should provide proof that the customers have received notice within 10 days of the date of the notice. (Fletcher, Murphy)

Staff Analysis:

In the Settlement Agreement, the Parties have agreed to the revenue requirement contained in the February 10, 2012, Staff Preliminary Report (Staff Report),[3] with the following exceptions: 1) the transportation expense is be reduced by $19,000,[4] with an equal $9,500 reduction for water and wastewater operations, respectively; and 2) all documented pro forma costs associated with construction of the Class V injection well system and costs of operating the injection well are allocated equally 50/50 to the water and wastewater systems, this will impact only the provision of Phase II rates. The Staff Report, excluding schedules, is incorporated in this recommendation as Attachment B.

In addition, the settlement provides that after documentation of any pro forma plant additions is provided and the implementation of any Phase II rates is completed, Useppa will not file for another rate case prior to January 2015, unless year end 2013 financial data reveals a significant operational loss for the Utility. If such a loss can be documented, the Parties have agreed that Useppa may file for rate relief in 2014 after the presentation of the documented loss to the POA’s Board of Directors. Further, the Parties have agreed that the rates recommended in the Staff Report will be adjusted in accordance with foregoing. Moreover, because the Staff Report did not address the Utility’s quality of service, staff received clarification that the POA has also stipulated that the quality of service provided by Useppa is satisfactory.[5]

Staff believes that the Parties’ Settlement Agreement is a reasonable resolution because it addresses all issues in this docket. Further, staff believes that it is in the public interest for the Commission to approve the Settlement Agreement because it promotes administrative efficiency. In keeping with the Commission’s long-standing practice of encouraging parties to settle contested proceedings whenever possible,[6] staff recommends that the Commission approve the Parties’ Settlement Agreement.

Based on the provisions of the Settlement Agreement, staff has calculated the Phase I revenue requirement and resulting rates. The water and wastewater rate bases are shown on Schedule Nos. 1-A and 1-B, respectively, with adjustments to rate base shown on Schedule No. 1-C. The capital structure is shown on Schedule No. 2. The operating income schedules for water and wastewater are labeled as Schedule Nos. 3-A and 3-B, respectively. The operating income adjustments are shown on Schedule No. 3-C. The O&M expense adjustments by primary account name and number for water and wastewater are reflected on Schedule Nos. 3-D and 3-E, respectively. The Utility’s rates prior to filing, Staff Report rates, the recommended Phase I rates, and the four-year rate reduction for water and wastewater are shown on Schedule Nos. 4-A and 4-B, respectively.

If the Settlement Agreement is approved, the Utility should file a proposed customer notice and revised tariff sheets consistent with the Commission’s decision within 15 days of the Commission vote. The approved rates should be effective for service rendered on or after the stamped approval date of the tariff pursuant to Rule 25-30.475(1), F.A.C., after staff has verified that the proposed customer notice is adequate and the notice has been provided to the customers. The Utility should provide proof that the customers have received notice within 10 days after the date of the notice.

Issue 2:

Should this docket be closed?

Recommendation: No. If no timely protest is received from a sustainably affected person, upon expiration of the protest period, the PAA Order will become final upon the issuance of a consummating order. If the Commission approves staff’s recommendation in Issue 1, this docket should remain open to address Phase II rates in accordance with the Parties’ Stipulation and Settlement Agreement. (Murphy, Fletcher)

Staff Analysis:

If no timely protest is received from a sustainably affected person, upon expiration of the protest period, the PAA Order will become final upon the issuance of a consummating order. If the Commission approves staff’s recommendation in Issue 1, this docket should remain open to address Phase II rates in accordance with the Parties’ Stipulation and Settlement Agreement.

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	USEPPA ISLAND UTILITY, INC.		SCHEDULE NO. 1-A
	TEST YEAR ENDED 6/30/2011		DOCKET NO. 110260-WS
	SCHEDULE OF WATER RATE BASE – PHASE I
		BALANCE	STAFF	BALANCE
		PER	ADJUST. TO	PER
	DESCRIPTION	UTILITY	UTIL. BAL.	STAFF

1.	UTILITY PLANT IN SERVICE	$565,846	$16,324	$582,169

2.	LAND & LAND RIGHTS	10,463	0	10,463

3.	NON-USED AND USEFUL COMPONENTS	0	0	0

4.	CIAC	(225,670)	0	(225,670)

5.	ACCUMULATED DEPRECIATION	(359,232)	(18,130)	(377,363)

6.	AMORTIZATION OF CIAC	209,064	(23,444)	185,620

7.	WORKING CAPITAL ALLOWANCE	0	15,499	15,499

8.	WATER RATE BASE	$200,470	($9,752)	$190,719

	USEPPA ISLAND UTILITY, INC.		SCHEDULE NO. 1-B
	TEST YEAR ENDED 6/30/2011		DOCKET NO. 110260-WS
	SCHEDULE OF WASTEWATER RATE BASE – PHASE I
		BALANCE	STAFF	BALANCE
		PER	ADJUST. TO	PER
	DESCRIPTION	UTILITY	UTIL. BAL.	STAFF

1.	UTILITY PLANT IN SERVICE	$523,607	($14,020)	$509,587

2.	LAND & LAND RIGHTS	3,487	0	3,487

3.	NON-USED AND USEFUL COMPONENTS	0	0	0

4.	CIAC	(230,187)	0	(230,187)

5.	ACCUMULATED DEPRECIATION	(330,001)	17,426	(312,576)

6.	AMORTIZATION OF CIAC	230,187	0	230,187

7.	WORKING CAPITAL ALLOWANCE	0	13,932	13,932

8.	WASTEWATER RATE BASE	$197,093	$17,337	$214,430

	USEPPA ISLAND UTILITY, INC.	SCHEDULE NO. 1-C
	TEST YEAR ENDED 6/30/2011	DOCKET NO. 110260-WS
	ADJUSTMENTS TO RATE BASE		PAGE 1 OF 2
		WATER	WASTEWATER
	UTILITY PLANT IN SERVICE
1.	To adjust Acct. No. 320 to Commission Order No. PSC-07-0385-SC-WS.	($1,862)	$0
2.	To adjust Acct. No. 334 to Commission Order No. PSC-07-0385-SC-WS.	(16)	0
3.	To adjust Acct. No. 339 to Commission Order No. PSC-07-0385-SC-WS.	844	0
4.	To adjust Acct. No. 343 to Commission Order No. PSC-07-0385-SC-WS.	434	0
5.	To adjust Acct. No. 344 to Commission Order No. PSC-07-0385-SC-WS.	583	0
6.	To reclassify plant to CWIP.	(3,048)	0
7.	To record retirement for plant addition to Acct. No. 307.	(908)	0
8.	To record retirement for plant addition to Acct. No. 307.	(569)	0
9.	To record retirement for plant addition to Acct. No. 311.	(1,099)	0
10.	To record retirement for plant addition to Acct. No. 311.	(1,512)	0
11.	To record retirement for plant addition to Acct. No. 311.	(2,042)	0
12.	To remove plant addition from Acct. No. 320 for lack of support documentation.	(1,509)	0
13.	To reclassify plant addition from Acct. No. 333 to Acct. No. 334.	(939)	0
14.	To record plant addition to Acct. No. 334 that was recorded incorrectly to Acct. No. 333.	980	0
15.	To record retirements for plant additions to Acct. No. 334.	(1,598)	0
16.	To record retirement for plant addition to Acct. No. 340.	(359)	0
17.	To correct overstated account.	(43)	0
18.	To adjust Acct. No. 360 to Commission Order No. PSC-07-0385-SC-WS.	0	(9,074)
19.	To adjust Acct. No. 380 to Commission Order No. PSC-07-0385-SC-WS.	0	265
20.	To adjust Acct. No. 389 to Commission Order No. PSC-07-0385-SC-WS.	0	9,072
21.	To record retirement for plant addition to Acct. No. 360.	0	(4,733)
22.	To record retirement for plant addition to Acct. No. 370.	0	(2,671)
23.	To record retirement for plant addition to Acct. No. 380	0	(3,995)
24.	To remove plant addition from Acct. No. 380 for lack of support documentation.	0	(403)
25.	To reclassify blower part to Acct. No. 380 from expense.	0	298
26.	To record retirement for plant addition to Acct. No. 390.	0	(359)
27.	To record pro forma plant addition for tank rehabilitation to Acct. No. 320.	29,569	0
28.	To reflect an averaging adjustment.	(582)	(2,420)
	Total	$16,324	($14,020)

	ACCUMULATED DEPRECIATION
1.	To reflect accumulated depreciation per Rule 25-30.140 F.A.C.	($23,717)	$9,816
2.	To reflect an averaging adjustment.	6,482	7,610
3.	To reflect pro forma depreciation expense.	(896)	0
	Total	($18,130)	$17,426

	USEPPA ISLAND UTILITY, INC.	SCHEDULE NO. 1-C
	TEST YEAR ENDED 6/30/2011	DOCKET NO. 110260-WS
	ADJUSTMENTS TO RATE BASE – PHASE I	PAGE 2 OF 2
		WATER	WASTEWATER
	AMORTIZATION OF CIAC
1.	To adjust Amortization of CIAC based on composite rates.	($22,147)	$0
2.	To reflect an averaging adjustment.	(1,297)	0
	Total	($23,444)	$0

	WORKING CAPITAL ALLOWANCE
	To reflect 1/8 of test year O & M expense.	$15,499	$13,932

	USEPPA ISLAND UTILITY, INC.							SCHEDULE NO. 2
	TEST YEAR ENDED 6/30/2011						DOCKET NO. 110260-WS
	SCHEDULE OF CAPITAL STRUCTURE
				BALANCE
			SPECIFIC	BEFORE	PRO RATA	BALANCE	PERCENT
		PER	ADJUST-	PRO RATA	ADJUST-	PER	OF		WEIGHTED
	CAPITAL COMPONENT	UTILITY	MENTS	ADJUSTMENTS	MENTS	STAFF	TOTAL	COST	COST

1.	COMMON EQUITY	$1,000	$0	$1,000
2.	RETAINED EARNINGS	(543,049)	393,049	(150,000)
3.	PAID IN CAPITAL	149,000	0	149,000
4.	TREASURY STOCK	0	0	0
5.	TOTAL COMMON EQUITY	($393,049)	$393,049	$0	$0	$0	0.00%	11.16%	0.00%

6.	NP Southwest Capital Bank	6,173		6,173	(3,062)	3,111	0.77%	6.18%	0.05%
7.	NP Stockholders	797,714		797,714	(395,676)	402,038	99.23%	3.46%	3.43%
	TOTAL LONG TERM DEBT	803,887	0	803,887	(398,738)	405,149	100.00%

8.	CUSTOMER DEPOSITS		0	0	0	0	0.00%	6.00%	0.00%

9.	TOTAL	$410,838	$393,049	$803,887	($398,738)	$405,149	100.00%		3.48%

				RANGE OF REASONABLENESS			LOW	HIGH
				RETURN ON EQUITY			10.16%	12.16%
				OVERALL RATE OF RETURN			3.48%	3.48%

		USEPPA ISLAND UTILITY, INC.						SCHEDULE NO. 3-A
		TEST YEAR ENDED 6/30/2011						DOCKET NO. 110260-WS
		SCHEDULE OF WATER OPERATING INCOME
							STAFF	ADJUST.
				TEST YEAR	STAFF		ADJUSTED	FOR		REVENUE
				PER UTILITY	ADJUSTMENTS		TEST YEAR	INCREASE		REQUIREMENT

1.		OPERATING REVENUES		$164,926	$222		$165,148	$4,900		$170,048
								2.97%
		OPERATING EXPENSES:
2.		OPERATION & MAINTENANCE		$121,376	$12,185		$123,993	$0		$123,993

3.		DEPRECIATION (NET)		19,558	529		20,087	0		20,087

4.		AMORTIZATION		0	0		0	0		0

5.		TAXES OTHER THAN INCOME		20,211	(1,100)		19,111	221		19,331

6.		INCOME TAXES		0	0		0	0		0

7.		TOTAL OPERATING EXPENSES		$161,145	$11,613		$163,191	$221		$163,411

8.		OPERATING INCOME/(LOSS)		$3,781			$1,957			$6,637

9.		WATER RATE BASE		$200,470			$190,719			$190,719

10.		RATE OF RETURN		1.89%			1.03%			3.48%


	USEPPA ISLAND UTILITY, INC.								SCHEDULE NO. 3-B
	TEST YEAR ENDED 6/30/2011								DOCKET NO. 110260-WS
	SCHEDULE OF WASTEWATER OPERATING INCOME
						STAFF			ADJUST.
			TEST YEAR		STAFF	ADJUSTED			FOR		REVENUE
			PER UTILITY		ADJUSTMENTS	TEST YEAR			INCREASE		REQUIREMENT

1.	OPERATING REVENUES		$153,202		$1,827	$155,029			($644)		$154,385
									-0.42%
	OPERATING EXPENSES:
2.	OPERATION & MAINTENANCE		$121,223		$3,344	$111,455			$0		$111,455

3.	DEPRECIATION (NET)		19,247		(2,406)	16,841			0		16,841

4.	AMORTIZATION		0		0	0			0		0

5.	TAXES OTHER THAN INCOME		19,750		(1,094)	18,656			(29)		18,627

6.	INCOME TAXES		0		0	0			0		0

7.	TOTAL OPERATING EXPENSES		$160,220		($156)	$146,952			($29)		$146,923

8.	OPERATING INCOME/(LOSS)		(7,018)			8,077					7,462

9.	WASTEWATER RATE BASE		197,093			214,430					214,430

10.	RATE OF RETURN		-3.56%			3.77%					3.48%

	USEPPA ISLAND UTILITY, INC.	SCHEDULE NO. 3-C
	TEST YEAR ENDED 6/30/2011	DOCKET NO. 110260-WS
	ADJUSTMENTS TO OPERATING INCOME		PAGE 1 OF 3

		WATER	WASTEWATER
	OPERATING REVENUES
	To reflect the appropriate test year revenues.	$222	$1,827

	OPERATION AND MAINTENANCE EXPENSES
	Salaries and Wages Employees (601/ 701)
1.	To annualize employee's salary.	$3,492	$3286
2.	To reclassify to contractual services for contract operator (-5760-953).	(6,713)	(477)
	Subtotal	($3,221)	$2,809

	Employee Pensions and Benefits (604/ 704)
1.	Health Insurance headquarters allocation.	$648	$648
2.	401K headquarters allocation.	392	392
	Subtotal	$1,040	$1,040

	Purchased Power (615/ 715)
1.	To reallocate total purchased power between water and Wastewater according to usage.	($1,834)	$1,834
2.	To reflect electric discrepancy in billing.	53	53
	Subtotal	($1,781)	$1,887

	Fuel for Power Production (616/617)
	To reflect pro forma fuel expense for generator.	$668	$668

	Materials and Supplies (720)
	To remove cost associated with blower replacement part.	$0	($298)

	Contractual Services - Professional (631/731)
1.	To remove permitting cost that should be capitalized for deep well project.	($2,239)	($8,600)
2.	To reclassify Saturday contract water plant operator from Acct. No. 601.	5,760	0
3.	To include pro forma increase for per trip by operator.	960	0
4.	To reclassify contract expense from Acct. No. 601/701.	953	477
5.	To reflect pro forma amount of the plant operator vacation coverage.	997	498
6.	To reflect IT headquarters allocation.	562	562
	Subtotal	$6,993	($7,063)


	(O & M EXPENSES CONTINUED ON NEXT PAGE)

	USEPPA ISLAND UTILITY, INC.	SCHEDULE NO. 3-C
	TEST YEAR ENDED 6/30/2011	DOCKET NO. 110260-WS
	ADJUSTMENTS TO OPERATING INCOME		PAGE 2 OF 3
	(O & M EXPENSES CONTINUED)	WATER	WASTEWATER

	Contractual Services - Testing (635/ 735)
1.	To reflect appropriate amount for annual testing.	$1,547	($213)
2.	To reclassify to transportation expense.	(548)	(3,798)
3.	To reflect pro forma adjustment for required three-year testing.	677	113
4.	To reflect misc. testing.	156	0
	Subtotal	$1,832	($3,898)

	Rents (640/ 740)
	To reflect the appropriate rent expense.	($3,322)	($3,322)

	Insurance Expenses (655/ 755)
	To reflect the appropriate insurance expense.	($628)	($628)

	Regulatory Expense (665/ 765)
	To reflect four-year amortization of rate case expense.	$201	$201

	Miscellaneous Expense (675/ 775)
1.	To reflect house cleaning expense allocation.	$468	$468
2.	To include pest control expense.	228	228
3.	To include postage expenses.	139	139
4.	To remove fine from DEP.	0	(2,000)
	Subtotal	$835	($1,165)

	TOTAL OPERATION & MAINTENANCE ADJUSTMENTS	$2,618	($9.768)

	DEPRECIATION EXPENSE
1.	To reflect depreciation expense.	($3,903)	($2,406)
2.	To reflect amortization expense.	4,431	0
	Total	$529	($2,406)

	TAXES OTHER THAN INCOME
1.	To reflect the appropriate RAFs.	$24	$30
2.	To reflect the appropriate property taxes.	(325)	(325)
3.	To reflect the appropriate payroll taxes.	(799)	(799)
	Total	($1,100)	($1,094)

USEPPA ISLAND UTILITY, INC.		SCHEDULE NO. 3-D
TEST YEAR ENDED 6/30/2011		DOCKET NO. 110260-WS
ANALYSIS OF WATER OPERATION AND MAINTENANCE EXPENSE
	TOTAL	STAFF	TOTAL
	PER	PER	PER
	UTILITY	ADJUST.	STAFF
(601) SALARIES AND WAGES - EMPLOYEES	$63,058	($3,221)	$59,837
(603) SALARIES AND WAGES - OFFICERS	0	0	0
(604) EMPLOYEE PENSIONS AND BENEFITS	2,637	1,040	3,677
(610) PURCHASED WATER	0	0	0
(615) PURCHASED POWER	22,917	(1,781)	21,136
(616) FUEL FOR POWER PRODUCTION	9	668	677
(618) CHEMICALS	2,483	0	2,483
(620) MATERIALS AND SUPPLIES	4,402	0	4,402
(630) CONTRACTUAL SERVICES - BILLING	0	0	0
(631) CONTRACTUAL SERVICES - PROFESSIONAL	3,989	6,993	10,982
(635) CONTRACTUAL SERVICES - TESTING	1,615	1,832	3,447
(636) CONTRACTUAL SERVICES - OTHER	1,675	0	1,675
(640) RENTS	8,450	(3,322)	5,128
(650) TRANSPORTATION EXPENSE	4,453	0	4,453
(655) INSURANCE EXPENSE	3,638	(628)	3,010
(665) REGULATORY COMMISSION EXPENSE	0	201	201
(670) BAD DEBT EXPENSE	0	0	0
(675) MISCELLANEOUS EXPENSES	2,048	835	2,883
	$121,376	$2,618	$123,993

USEPPA ISLAND UTILITY, INC.		SCHEDULE NO. 3-E
TEST YEAR ENDED 6/30/2011		DOCKET NO. 110260-WS
ANALYSIS OF WASTEWATER OPERATION AND MAINTENANCE EXPENSE
	TOTAL	STAFF	TOTAL
	PER	ADJUST-	PER
	UTILITY	MENT	STAFF
(701) SALARIES AND WAGES - EMPLOYEES	$57,028	$2,809	$59,837
(703) SALARIES AND WAGES - OFFICERS	0	0	0
(704) EMPLOYEE PENSIONS AND BENEFITS	2,496	1,040	3,536
(710) PURCHASED SEWAGE TREATMENT	0	0	0
(711) SLUDGE REMOVAL EXPENSE	779	0	779
(715) PURCHASED POWER	13,763	1,887	15,650
(716) FUEL FOR POWER PRODUCTION	9	668	677
(718) CHEMICALS	2,700	0	2,700
(720) MATERIALS AND SUPPLIES	3,195	(298)	2,897
(730) CONTRACTUAL SERVICES - BILLING	0	0	0
(731) CONTRACTUAL SERVICES - PROFESSIONAL	10,350	(7,063)	3,287
(735) CONTRACTUAL SERVICES - TESTING	9,967	(3,898)	6,069
(736) CONTRACTUAL SERVICES - OTHER	972	0	972
(740) RENTS	8,450	(3,322)	5,128
(750) TRANSPORTATION EXPENSE	3,941	0	3,941
(755) INSURANCE EXPENSE	3,638	(628)	3,010
(765) REGULATORY COMMISSION EXPENSES	0	201	201
(770) BAD DEBT EXPENSE	0	0	0
(775) MISCELLANEOUS EXPENSES	3,935	(1,165)	2,770
	$121,223	($9,768)	$111,455

USEPPA ISLAND UTILITY, INC.			SCHEDULE NO. 4-A
TEST YEAR ENDED 6/30/2011			DOCKET NO. 110260-WS
MONTHLY WATER RATES
	UTILITY'S	STAFF	PHASE I	MONTHLY
	EXISTING	REPORT	RECOMMENDED	RATE
	RATES	RATES	RATES	REDUCTION
Residential
and General Service
Base Facility Charge by Meter Size:
5/8"X3/4"	$35.24	$37.82	$35.58	$0.04
3/4"	$52.86	$56.73	$53.37	$0.07
1"	$88.10	$94.55	$88.96	$0.11
1-1/2"	$176.20	$189.10	$177.91	$0.22
2"	$281.92	$302.56	$284.66	$0.35
3"	$563.84	$605.12	$569.32	$0.71
4"	$881.00	$945.50	$889.56	$1.10
6"	$1,762.00	$1,891.00	$1,779.11	$2.21
Residential Service Gallonage Charge	$2,819.00	$3,060.80	$2,879.70	$3.57

Per 1,000 Gallons	$6.33	$7.10	$6.68	$0.01

General Service Gallonage Charge
Per 1,000 Gallons	$6.33	$7.10	$6.68	$0.01

Fire Protection
2"		$25.21	$23.72	$0.03
3"		$50.43	$47.45	$0.06

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons	$54.23	$59.12	$55.62
5,000 Gallons	$66.89	$73.32	$68.98
10,000 Gallons	$98.54	$108.82	$102.38

USEPPA ISLAND UTILITY, INC.			SCHEDULE NO. 4-B
TEST YEAR ENDED 6/30/2011			DOCKET NO. 110260-WS
MONTHLY WASTEWATER RATES
	UTILITY'S	STAFF	PHASE I	MONTHLY
	EXISTING	REPORT	RECOMMENDED	RATE
	RATES	RATES	RATES	REDUCTION
Residential Service
Base Facility Charge All Meter Sizes	$45.13	$52.06	$47.79	$0.07
Gallonage Charge
Per 1,000 Gallons (6,000 gallon cap)	$11.81	$11.76	$11.76	$0.02

General Service
Base Facility Charge by Meter Size:
5/8"X3/4"	$45.13	$ 52.06	$52.06	$0.07
3/4"	$67.69	$ 78.09	$78.09	$0.11
1"	$112.82	$ 130.15	$130.15	$0.18
1-1/2"	$225.65	$ 260.30	$260.30	$0.36
2"	$361.04	$ 416.48	$416.48	$0.57
3"	$722.08	$ 832.96	$832.96	$1.14
4"	$1,128.24	$ 1,301.50	$1,301.50	$1.78
6"	$2,256.49	$ 2,603.00	$2,603.00	$3.56
8"	$3,610.40	$ 3,492.00	$3,492.00	$4.77

Gallonage Charge per 1,000 gallons	$14.17	$14.11	$14.11	$0.02

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons	$80.56	$87.34	$83.07
5,000 Gallons	$104.18	$110.86	$106.59
10,000 Gallons	$115.99	$122.62	$118.35

[1] See Order No. 10900, issued June 16, 1982, in Docket No. 810268-WS, In re: Application of Useppa Island, Inc. for a certificate to operate a water and sewer utility in Lee County, Florida.

[2] See Order No. PSC-07-0385-SC-WS, issued May 1, 2007, in Docket No. 060575-WS, In re: Application for staff-assisted rate case in Lee County by Useppa Island Utility, Inc.

[3] See Document No. 00903-12 filed in the instant docket.

[4] With Commission reduction of $9,500 for water and $9,500 for wastewater.

[6] See Order Nos. PSC-06-0092-AS-WU, issued February 9, 2006, in Docket No. 000694-WU, In re: Petition by Water Management Services, Inc. for limited proceeding to increase water rates in Franklin County.; PSC-05-0956-PAA-SU, issued October 7, 2005, in Docket No. 050540-SU, In re: Settlement offer for possible overearnings in Marion County by BFF Corp.; and PSC-00-0374-S-EI, issued February 22, 2000, in Docket No. 990037-EI, In re: Petition of Tampa Electric Company to close Rate Schedules IS-3 and IST-3, and approve new Rate Schedules GSLM-2 and GSLM-3.