Recommendation

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DATE:	December 23, 2013
TO:	Office of Commission Clerk (Stauffer)
FROM:	Division of Accounting and Finance (T. Brown, Fletcher, Maurey) Office of Auditing and Performance Analysis (Deamer, Dobiac, Mailhot) Division of Economics (Bruce, Daniel, Hudson, Roberts, Thompson) Office of the General Counsel (Lawson)
RE:	Docket No. 120209-WS – Application for increase in water and wastewater rates in Marion, Orange, Pasco, Pinellas, and Seminole Counties by Utilities, Inc. of Florida.
AGENDA:	01/07/14 – Regular Agenda – Proposed Agency Action – Interested Persons May Participate
COMMISSIONERS ASSIGNED:		All Commissioners
PREHEARING OFFICER:		Edgar
CRITICAL DATES:		5-Month Effective Date Waived Through 11/14/13
SPECIAL INSTRUCTIONS:		None

Case Background

Utilities, Inc. of Florida (UIF or Utility) is a Class A utility providing water and wastewater service to twenty systems in the following counties: Marion, Orange, Pasco, Pinellas, and Seminole. (See Attachment A) Of the twenty systems, eighteen are a part of this proceeding. UIF is a wholly-owned subsidiary of Utilities, Inc. (UI). The Utility’s last rate case was in 2009.[1]

By letter dated July 31, 2012, UIF requested test year approval in order to file an application for general rate relief for 4 of its counties. The Utility requested that the application be processed using the Proposed Agency Action (PAA) procedure and requested interim rates.

UIF’s requested test year for final and interim purposes is the historical year ended December 31, 2011. On March 29, 2013, the Utility filed minimum filing requirements (MFRs) to justify its requested rate increase. By letter dated April 26, 2013, UIF was notified that the MFRs were deficient. UIF corrected the deficiencies through information submitted on May 29, 2013. UIF did not request rate relief for its Marion County water and wastewater systems. However, to ensure that there was no cross-subsidization between the systems and that Marion County was not earning above its last authorized rate of return, staff expanded its review, including the audit, to include Marion County. Based on staff’s review, Marion County is not overearning and therefore, due to the Utility’s request, will not be part of this case.

On June 25, 2013, the Commission approved interim rates[2] designed to generate the following water and wastewater revenues:

County	Water Revenue Increase	% Increase	Wastewater Revenue Increase	% Increase
Orange	$17,111	14.77%	N/A	N/A
Pasco[3]	$46,325	5.13%	N/A	N/A
Pinellas[4]	$0	0.00%	N/A	N/A
Seminole	$42,687	4.88%	$23,389	2.90%

The interim rates are subject to refund with interest, pending the conclusion of the rate case.

The Utility requested final rates designed to generate total annual water revenues of $2,735,513, an increase of $736,881 or 36.87 percent, and total annual wastewater revenues of $1,601,009, an increase of $258,703 or 19.27 percent.

Customer meetings were held August 7 and 8, 2013, in New Port Richey and Altamonte Springs, respectively.

On October 28, 2013, the Office of Public Counsel (OPC) filed a Notice of Intervention in this docket, and an order acknowledging intervention was issued on October 30, 2013.[5] Prior to the Notice of Intervention, OPC submitted a letter and a CD dated October 25, 2013, composed of customer complaints and protests from the Utility’s Summertree customers.

The original five-month statutory deadline for the Commission to address the Utility’s requested final rates was October 29, 2013. However, by letter dated June 19, 2013, UIF waived the statutory time frame by which the Commission was required to address the Utility’s final requested rates through November 14, 2013.[6]

At the November 14, 2013, Agenda Conference, the Commission voted on the proposed agency action (PAA) issues for UIF’s rate relief petition. As a result of concerns raised by OPC regarding the Utility’s roll-forward adjustments, audit staff conducted further analytical reviews on UIF’s roll-forward adjustments and found errors which should be corrected. Roll-forward adjustments are Utility adjustments in the MFRs that reflect the Commission Ordered Adjustments directing the Utility to correct its books and records. The Utility does not make these adjustments directly to its books and records, but keeps them separately. The roll-forward adjustments need to be reviewed and recalculated repeatedly for each rate case. This results in recalculating Accumulated Depreciation and Accumulated Amortization of Contributions-In-Aid-of-Construction (CIAC) as well as reviewing any retirements every time the Utility files for a rate case. In each subsequent rate case, reviewing this information becomes more and more voluminous and time consuming. Staff has not issued the PAA order codifying the Commission’s November 14, 2013 vote because it would not capture the correct roll-forward information for all systems. The PAA order will be issued as soon as possible after the January 7, 2014 vote, and it will incorporate the Commission’s decision on the roll-forward issues.

This recommendation addresses the correction of the Utility’s roll-forward adjustments and the appropriate disposition of any resulting interim refunds. The Commission has jurisdiction pursuant to Sections 367.081 and 367.082, F.S.

Discussion of Issues

Issue 1:

Should the revenue requirements and resulting rates, approved by the Commission on November 14, 2013, be revised to correct errors related to the Utility's roll-forward adjustments?

Recommendation:

Yes. The resulting revenue impacts for all systems for this case are reflected below:

County/System	PAA Revenue Increase (or Decrease)	PAA % Change	Revised Revenue Increase (or Decrease)	Revised % Change
Orange - Water	$25,121	21.65%	$10,565	9.10%
Pasco - Water	$192,354	21.24%	$188,824	20.85%
Pasco - Wastewater	($12,337)	(2.34%)	($63,346)	(12.00%)
Pinellas - Water	$62,989	59.89%	$62,327	59.26
Seminole - Water	$218,837	24.96%	$215,440	24.57%
Seminole - Wastewater	$104,030	12.74%	$70,033	8.57%

The resulting water and wastewater rates from the corrected revenue requirements are shown on Schedule Nos. 4-A through 4-E. (Dobiac, Lawson, T. Brown)

Staff Analysis: Chapter 367, Florida Statutes, provides that the Commission has exclusive jurisdiction over the rates of each public utility and must upon request, or its own motion, fix rates that are just, reasonable, compensatory, and not unduly discriminatory. It would not be appropriate to allow the Utility's ratepayers to pay for an inadvertent mistake made by the Commission by its vote at the November 14, 2013, Agenda Conference, in reliance upon mistaken information provided by the Utility and not initially detected in the staff audit. The Commission has the authority to determine whether there are mistakes in its prior decisions, and has a duty to correct such errors. See Sunshine Utilities v. FPSC, 577 So. 2d 663 (Fla. 1st DCA 1991) at 668, citing Reedy Creek Utilities v. Florida Public Service Commission, 418 So. 2d 249 (Fla. 1982) and Richter v. Florida Power Corp., 366 So. 2d 798 (Fla. 3d DCA 1979). Thus, staff recommends that the adjustments discussed below be incorporated in the initial issuance of a PAA order for this docket.

Orange County – Water

In calculating four of its roll-forward adjustments, the Utility increased plant by a total of $113,795, which audit staff is removing to be consistent with the prior case. Related accumulated depreciation and depreciation expense should be decreased by $86,264 and $5,368, respectively.

When the Utility recorded a Commission ordered adjustment from Docket 060253-WS, it reduced CIAC instead of increasing it. In Docket 090462-WS, the Utility had to make two roll-forward adjustments in the filing, which increased CIAC to correct the error and to make the proper adjustment. In the current case, the Utility did not make the roll-forward adjustment correctly. Only one adjustment to increase CIAC ended up in the filing. Another adjustment to increase CIAC by $42,868 is required. Audit staff has also made related adjustments to increase Accumulated Amortization of CIAC by $27,205 and to increase Amortization of CIAC by $3,966.

Pasco County – Wastewater

In calculating one of its roll-forward adjustments, the Utility mistakenly used $31,587 for the book balance rather than the correct amount of $214,286, which results in an overstatement of plant by $182,699. In addition, audit staff recalculated the roll-forward amount to be consistent with the prior order, which results in an increase to plant of $5,178. Plant should be decreased by $177,521 ($182,699 - $5,178). Related accumulated depreciation should be decreased by $89,947. Depreciation expense was adjusted correctly.

In calculating another one of its roll-forward adjustments, the Utility mistakenly used $37,801 for the book balance rather than the correct amount of $588,752, which results in an overstatement of plant by $550,952. In addition, audit staff recalculated the roll-forward amount to be consistent with the prior order, which results in a decrease to plant of $44,674. Plant should be decreased by $595,626 ($550,952 + $44,674). Related accumulated depreciation and depreciation expense should be decreased by $243,625 and $1,603, respectively.

In calculating another one of its roll-forward adjustments, the Utility increased plant by $120,891, which audit staff is removing to be consistent with the prior case. Related accumulated depreciation and depreciation expense should be decreased by $168,235 and $6,740, respectively.

Seminole County – Wastewater

In calculating one of its roll-forward adjustments, the Utility mistakenly used $35,012 for its book balance rather than the correct amount of $138,317, which results in an overstatement of plant by $103,305. In addition, audit staff recalculated the roll-forward amount to be consistent with the prior order, which results in an increase to plant of $2,843. Plant should be decreased by $100,462 ($103,305 - $2,843). Related accumulated depreciation should be decreased by $70,778. Depreciation expense was adjusted correctly.

Audit staff made an adjustment to decrease Seminole County’s Wastewater CIAC balance by $269,264 to correct an adjustment, which the Utility had recorded on its books in the wrong CIAC subaccount. The decrease of $269,264 to one CIAC subaccount should have been offset by an increase to the correct CIAC subaccount. However, audit staff inadvertently included only the decrease to CIAC.

Conclusion

The adjustments above significantly impact the revenue requirements for Orange County water, Pasco County wastewater, and Seminole County wastewater systems. In addition, the adjustments have a fall-out effect on UIF’s overall cost of capital which affects the remaining systems in this case.[7] Specifically, as a result of the adjustments above, the appropriate weighted average cost of capital for all UIF systems for purposes of setting rates in this proceeding is 7.34 percent, as shown on Schedule No. 1-A. Schedule Nos. 2-4 have been updated to account for the fall-out revisions associated with the corrections for errors related to the Utility's roll-forward adjustments. The resulting revenue impacts for all systems for this case are reflected in the following table.

Table 1-1

County/System	PAA Revenue Increase (or Decrease)	PAA % Change	Revised Revenue Increase (or Decrease)	Revised % Change
Orange - Water	$25,121	21.65%	$10,565	9.10%
Pasco - Water	$192,354	21.24%	$188,824	20.85%
Pasco - Wastewater	($12,337)	(2.34%)	($63,346)	(12.00%)
Pinellas - Water	$62,989	59.89%	$62,327	59.26
Seminole - Water	$218,837	24.96%	$215,440	24.57%
Seminole - Wastewater	$104,030	12.74%	$70,033	8.57%

The resulting water and wastewater rates from the corrected revenue requirements are shown on Schedule Nos. 4-A through 4-E.

Issue 2:

Should the initial interim refund calculations be revised, and, if so, what is the amount of any refunds?

Recommendation:

Yes. The appropriate refund amounts should be calculated by using the same data used to establish final rates, excluding rate case expense and other items not in effect during the interim period. The revised revenue requirements for the interim collection period should be compared to the amount of interim revenues granted. The revenue requirements granted in the Interim Order for the test year are less than the revised revenue requirements for the interim collection period for Pasco County water and Seminole County water and wastewater. This results in no interim refunds for these systems. The revenue requirement granted for Orange County water in the Interim Order for the test year is greater than the revised revenue requirement for the interim collection period, which results in a refund of 7.99 percent of water revenues collected under interim rates. The refunds should be made with interest in accordance with Rule 25-30.360(4), F.A.C. The Utility should be required to submit proper refund reports pursuant to Rule 25-30.360(7), F.A.C. The Utility should treat any unclaimed refunds as CIAC pursuant to Rule 25-30.360(8), F.A.C. Further, the corporate undertaking should be released upon staff’s verification that the required refunds have been made. (T. Brown)

Staff Analysis:

By Order No. PSC-13-0332-PCO-WS (Interim Order), the Commission authorized the collection of interim water and wastewater rates, subject to refund, pursuant to Section 367.082, F.S. UIF did not request rate relief for its Marion County water and wastewater systems. The Utility did not request interim rates for its wastewater system in Pasco County. In addition, no interim increase was applied to the Pinellas County water system. Table 2-1 shows the Commission-approved interim revenue requirements.

Table 2-1

	Adjusted Test	Revenue	Revenue	%
County	Year Revenues	Increase	Requirement	Increase
Orange – Water	$115,858	$17,111	$132,969	14.77%
Pasco – Water	$903,759	$46,325	$950,084	5.13%
Seminole - Water	$874,012	$42,687	$916,699	4.88%
Seminole - Wastewater	$806,130	$23,389	$829,519	2.90%

According to Section 367.082, F.S., any refund should be calculated to reduce the rate of return of the Utility during the pendency of the proceeding to the same level within the range of the newly authorized rate of return. Adjustments made in the rate case test period that do not relate to the period interim rates are in effect should be removed. Rate case expense is an example of an adjustment which is recovered only after final rates are established.

In this proceeding, the test period for establishment of interim and final rates is the 12-month period ended December 31, 2011. UIF’s approved interim rates did not include any provisions for pro forma operating expenses or plant. The interim increase was designed to allow recovery of actual interest costs, and the lower limit of the last authorized range of return on equity. To establish the proper refund amount, staff calculated revised interim revenue requirements utilizing the same data used to establish final rates. Rate case expense was excluded because this item is prospective in nature and did not occur during the interim collection period.

Using the principles discussed above, the revenue requirements granted in the Interim Order for the test year are less than the revised revenue requirements for the interim collection period for Pasco County water and Seminole County water and wastewater. This results in no interim refunds for these systems. Table 2-2 shows the interim test year revenues and staff’s recalculated interim period revenues.

Table 2-2

County	Interim Test Year Revenues Granted	Recalculated Interim Period Revenue Requirement
Pasco – Water	$950,084	$1,057,550
Seminole – Water	$916,699	$1,059,102
Seminole – Wastewater	$829,519	$869,128

However, the $132,969 revenue requirement granted for Orange County water in the Interim Order for the test year is greater than the revised revenue requirement for the interim collection period of $122,791 This results in a refund of 7.99 percent. The Utility should be required to refund 7.99 percent of water revenues collected under interim rates. The refund should be made with interest in accordance with Rule 25-30.360(4), F.A.C. The Utility should be required to submit proper refund reports pursuant to Rule 25-30.360(7), F.A.C. The Utility should treat any unclaimed refunds as CIAC pursuant to Rule 25-30.360(8), F.A.C. Further, the corporate undertaking should be released upon staff’s verification that the required refunds have been made.

Issue 3:

Should this docket be closed?

Recommendation: No. If no person whose substantial interests are affected by the proposed agency action files a protest within 21 days of the issuance of the order, a consummating order should be issued. The docket should remain open for staff’s verification that the revised tariff sheets and customer notices have been filed by the Utility and approved by staff, and that the interim refund for Orange County water has been completed and verified by staff. Once these actions are complete, this docket should be closed administratively, and the corporate undertaking should be released.

(Lawson, T. Brown)

Staff Analysis:

If no person whose substantial interests are affected by the proposed agency action files a protest within 21 days of the issuance of the order, a consummating order should be issued. The docket should remain open for staff’s verification that the revised tariff sheets and customer notices have been filed by the Utility and approved by staff, and that the interim refund for Orange County water has been completed and verified by staff. Once these actions are complete, this docket should be closed administratively, and the corporate undertaking should be released.

ATTACHMENT A

County	System	Water Customers	Wastewater Customers
Marion	Golden Hills/Crownwood	528	76
Total		528	76

Orange	Crescent Heights	254
	Davis Shores	45
Total		299

Pasco	Orangewood/Wis-Bar/Buena Vista	1,704	158
	Summertree	1,179	980
Total		2,883	1,138

Pinellas	Lake Tarpon	430
Total		430

Seminole	Bear Lake	220
	Crystal Lakes	176
	Jansen	251
	Little Wekiva	58
	Oakland Shores	225
	Park Ridge	100
	Phillips	79
	Ravenna Park/Lincoln Heights	340	240
	Weathersfield/Trail Wood/Oakland Hills	1,145	1,136
Total		2,594	1,376
COMPANY TOTAL		6,734	2,590
*Source – Utilities, Inc. of Florida’s 2011 Annual Report

	Utilities, Inc. of Florida - All Counties								Schedule No. 1-A
	Capital Structure								Docket No. 120209-WS
	Test Year Ended 12/31/11
				Specific	Subtotal	Prorata	Capital
			Total	Adjust-	Adjusted	Adjust-	Reconciled		Cost	Weighted
	Description		Capital	ments	Capital	ments	to Rate Base	Ratio	Rate	Cost


1		Long-term Debt	$180,000,000	$0	$180,000,000	($175,493,134)	$4,506,866	43.57%	6.65%	2.90%
2		Short-term Debt	0	0	0	0	0	0.00%	0.00%	0.00%
3		Preferred Stock	0	0	0	0	0	0.00%	0.00%	0.00%
4		Common Equity	179,029,269	(2,810,248)	176,219,021	(171,806,824)	4,412,197	42.66%	10.38%	4.43%
5		Customer Deposits	71,266	0	71,266	0	71,266	0.69%	2.00%	0.01%
6		Investment Tax Credits	95,966	0	95,966	0	95,966	0.93%	0.00%	0.00%
7		Deferred Income Taxes	986,142	270,663	1,256,805	0	1,256,805	12.15%	0.00%	0.00%
8		Total Capital	$360,182,643	($2,539,585)	$357,643,058	($347,299,958)	$10,343,100	100.00%		7.34%

								LOW	HIGH
					RETURN ON EQUITY			9.38%	11.38%
					OVERALL RATE OF RETURN			6.91%	7.77%

	Utilities, Inc. of Florida - Orange County							Schedule No. 1-B
	Capital Structure							Docket No. 120209-WS
	Test Year Ended 12/31/11
			Specific	Subtotal	Prorata	Capital
		Total	Adjust-	Adjusted	Adjust-	Reconciled		Cost	Weighted
	Description	Capital	ments	Capital	ments	to Rate Base	Ratio	Rate	Cost
Per Utility
1	Long-term Debt	$180,000,000	$0	$180,000,000	($179,893,683)	$106,317	42.72%	6.65%	2.84%
2	Short-term Debt	0	0	0	0	0	0.00%	0.00%	0.00%
3	Preferred Stock	0	0	0	0	0	0.00%	0.00%	0.00%
4	Common Equity	179,029,269	0	179,029,269	(178,923,546)	105,723	42.48%	10.36%	4.40%
5	Customer Deposits	2,281	0	2,281	0	2,281	0.92%	6.00%	0.05%
6	Investment Tax Credits	2,955	0	2,955	0	2,955	1.19%	0.00%	0.00%
7	Deferred Income Taxes	31,581	0	31,581	0	31,581	12.69%	0.00%	0.00%
8	Total Capital	$359,066,086	$0	$359,066,086	($358,817,229)	$248,857	100.00%		7.29%

	Utilities, Inc. of Florida - Pasco County							Schedule No. 1-C
	Capital Structure							Docket No. 120209-WS
	Test Year Ended 12/31/11
			Specific	Subtotal	Prorata	Capital
		Total	Adjust-	Adjusted	Adjust-	Reconciled		Cost	Weighted
	Description	Capital	ments	Capital	ments	to Rate Base	Ratio	Rate	Cost
Per Utility
1	Long-term Debt	$180,000,000	$0	$180,000,000	($177,931,510)	$2,068,490	44.76%	6.65%	2.98%
2	Short-term Debt	0	0	0	0	0	0.00%	0.00%	0.00%
3	Preferred Stock	0	0	0	0	0	0.00%	0.00%	0.00%
4	Common Equity	179,029,269	0	179,029,269	(176,972,330)	2,056,939	44.51%	10.36%	4.61%
5	Customer Deposits	30,739	0	30,739	0	30,739	0.67%	6.00%	0.04%
6	Investment Tax Credits	39,802	0	39,802	0	39,802	0.86%	0.00%	0.00%
7	Deferred Income Taxes	425,306	0	425,306	0	425,306	9.20%	0.00%	0.00%
8	Total Capital	$359,525,116	$0	$359,525,116	($354,903,840)	$4,621,276	100.00%		7.63%

	Utilities, Inc. of Florida - Pinellas County							Schedule No. 1-D
	Capital Structure							Docket No. 120209-WS
	Test Year Ended 12/31/11
			Specific	Subtotal	Prorata	Capital
		Total	Adjust-	Adjusted	Adjust-	Reconciled		Cost	Weighted
	Description	Capital	ments	Capital	ments	to Rate Base	Ratio	Rate	Cost
Per Utility
1	Long-term Debt	$180,000,000	$0	$180,000,000	($179,709,166)	$290,834	45.94%	6.65%	3.05%
2	Short-term Debt	0	0	0	0	0	0.00%	0.00%	0.00%
3	Preferred Stock	0	0	0	0	0	0.00%	0.00%	0.00%
4	Common Equity	179,029,069	0	179,029,069	(178,740,059)	289,010	45.68%	10.36%	4.73%
5	Customer Deposits	3,288	0	3,288	0	3,288	0.52%	6.00%	0.03%
6	Investment Tax Credits	4,258	0	4,258	0	4,258	0.67%	0.00%	0.00%
7	Deferred Income Taxes	45,503	0	45,503	0	45,503	7.19%	0.00%	0.00%
8	Total Capital	$359,082,118	$0	$359,082,118	($358,449,225)	$632,893	100.00%		7.81%

	Utilities, Inc. of Florida - Seminole County							Schedule No. 1-E
	Capital Structure							Docket No. 120209-WS
	Test Year Ended 12/31/11
			Specific	Subtotal	Prorata	Capital
		Total	Adjust-	Adjusted	Adjust-	Reconciled		Cost	Weighted
	Description	Capital	ments	Capital	ments	to Rate Base	Ratio	Rate	Cost
Per Utility
1	Long-term Debt	$2,482,275	$0	$2,482,275	$0	$2,482,275	45.63%	6.65%	3.03%
2	Short-term Debt	0	0	0	0	0	0.00%	0.00%	0.00%
3	Preferred Stock	0	0	0	0	0	0.00%	0.00%	0.00%
4	Common Equity	2,468,413	0	2,468,413	0	2,468,413	45.37%	10.36%	4.70%
5	Customer Deposits	30,341	0	30,341	0	30,341	0.56%	6.00%	0.03%
6	Investment Tax Credits	39,287	0	39,287	0	39,287	0.72%	0.00%	0.00%
7	Deferred Income Taxes	419,804	0	419,804	0	419,804	7.72%	0.00%	0.00%
8	Total Capital	$5,440,120	$0	$5,440,120	$0	$5,440,120	100.00%		7.76%

	Utilities, Inc. of Florida - Orange County				Schedule No. 2-A
	Schedule of Water Rate Base				Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted
	Description	Utility	ments	Per Utility	ments	Test Year

1	Plant in Service	$433,577	($22,559)	$411,018	($112,465)	$298,553

2	Land and Land Rights	106	0	106	0	106

3	Non-used and Useful Components	0	0	0	0	0

4	Accumulated Depreciation	(220,690)	22,675	(198,015)	71,536	(126,479)

5	CIAC	46,479	(42,081)	4,398	(42,983)	(38,585)

6	Amortization of CIAC	22,171	(15,022)	7,149	27,208	34,357

7	CWIP	1	(1)	0	0	0

8	Working Capital Allowance	0	24,201	24,201	(5,256)	18,945

9	Rate Base	$281,644	($32,787)	$248,857	($61,960)	$186,897

	Utilities, Inc. of Florida - Orange County	Schedule No. 2-C
	Adjustments to Rate Base	Docket No. 120209-WS
	Test Year Ended 12/31/11

	Explanation	Water


	Plant In Service
1	Audit adjustments agreed to by Utility. (Issue 2)	$4,760
2	Phoenix Project adjustment. (Issue 3)	(3,430)
3	Post-Agenda Audit Adjustments	(113,795)
	Total	($112,465)

	Accumulated Depreciation
1	Audit adjustments agreed to by Utility. (Issue 2)	($15,185)
2	Phoenix Project adjustment. (Issue 3)	457
3	Post-Agenda Audit Adjustments	86,264
	Total	$71,536

	CIAC
1	Audit adjustments agreed to by Utility. (Issue 2)	($115)
2	Post-Agenda Audit Adjustments	(42,868)
	Total	($42,983)

	Accumulated Amortization of CIAC
1	Audit adjustments agreed to by Utility. (Issue 2)	$3
2	Post-Agenda Audit Adjustments	27,205
	Total	$27,208

	Working Capital
	Reflect appropriate working capital allowance. (Issue 7)	($5,256)

	Utilities, Inc. of Florida - Orange County						Schedule No. 3-A
	Statement of Water Operations						Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted	Revenue	Revenue
	Description	Utility	ments	Per Utility	ments	Test Year	Increase	Requirement

1	Operating Revenues:	$115,683	$39,909	$155,592	($39,542)	$116,050	$10,565	$126,615
							9.10%
	Operating Expenses
2	Operation & Maintenance	$89,748	$10,875	$100,623	($11,982)	$88,641		$88,641

3	Depreciation	23,397	(5,351)	18,046	(9,118)	8,928		8,928

4	Amortization	0	2,015	2,015	0	2,015		2,015

5	Taxes Other Than Income	5,683	4,467	10,150	(2,310)	7,840	475	8,315

6	Income Taxes	18	6,587	6,605	(5,407)	1,198	3,797	4,995

7	Total Operating Expense	118,846	18,593	137,439	(28,817)	108,622	4,272	112,895

8	Operating Income	($3,163)	$21,316	$18,153	($10,725)	$7,428	$6,293	$13,721

9	Rate Base	$281,644		$248,857		$186,897		$186,897

10	Rate of Return	(1.12%)		7.29%		3.97%		7.34%

	Utilities, Inc. of Florida - Pasco County				Schedule No. 2-A
	Schedule of Water Rate Base				Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted
	Description	Utility	ments	Per Utility	ments	Test Year

1	Plant in Service	$4,778,638	$257,354	$5,035,992	($49,762)	$4,986,230

2	Land and Land Rights	2,899	10,754	13,653	0	13,653

3	Non-used and Useful Components	0	0	0	0	0

4	Accumulated Depreciation	(1,424,772)	(81,851)	(1,506,623)	(143,631)	(1,650,254)

5	CIAC	(595,036)	(12,627)	(607,663)	(672)	(608,335)

6	Amortization of CIAC	434,351	(115,271)	319,080	(30,540)	288,540

7	Working Capital Allowance	0	233,736	233,736	(50,628)	183,108

8	Rate Base	$3,196,080	$292,095	$3,488,175	($275,234)	$3,212,941

	Utilities, Inc. of Florida - Pasco County				Schedule No. 2-B
	Schedule of Wastewater Rate Base				Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted
	Description	Utility	ments	Per Utility	ments	Test Year

1	Plant in Service	$1,329,707	$929,024	$2,258,731	($892,093)	$1,366,638

2	Land and Land Rights	10,500	(1,546)	8,954	0	8,954

3	Non-used and Useful Components	0	0	0	0	0

4	Accumulated Depreciation	(524,536)	(464,695)	(989,231)	451,179	(538,052)

5	CIAC	(531,736)	(55,519)	(587,255)	0	(587,255)

6	Amortization of CIAC	449,165	(99,443)	349,722	(23,424)	326,298

7	CWIP	10	(10)	0	0	0

8	Working Capital Allowance	0	92,181	92,181	(19,956)	72,225

9	Rate Base	$733,110	$399,992	$1,133,102	($484,293)	$648,809

	Utilities, Inc. of Florida - Pasco County	Schedule No. 2-C
	Adjustments to Rate Base	Docket No. 120209-WS
	Test Year Ended 12/31/11

	Explanation	Water	Wastewater


	Plant In Service
1	Audit adjustments agreed to by Utility. (Issue 2)	$39,541	$15,591
2	Phoenix Project adjustment. (Issue 3)	(34,371)	(13,646)
3	Reflect contractual services - engineering adjustment. (Issue 4)	1,367	0
4	Reflect appropriate pro forma plant adjustments. (Issue 5)	(56,299)	0
5	Post-Agenda Audit Adjustments	0	(894,038)
	Total	($49,762)	($892,093)

	Accumulated Depreciation
1	Audit adjustments agreed to by Utility. (Issue 2)	($132,972)	($52,432)
2	Phoenix Project adjustment. (Issue 3)	4,591	1,805
3	Reflect contractual services - engineering adjustment. (Issue 4)	(62)	0
4	Reflect appropriate pro forma plant adjustments. (Issue 5)	(15,188)	0
5	Post-Agenda Audit Adjustments	0	501,806
	Total	($143,631)	$451,179

	CIAC
	Audit adjustments agreed to by Utility. (Issue 2)	($672)	$0

	Accumulated Amortization of CIAC
	Audit adjustments agreed to by Utility. (Issue 2)	($30,540)	($23,424)

	Working Capital
	Reflect appropriate working capital allowance. (Issue 7)	($50,628)	($19,956)

	Utilities, Inc. of Florida - Pasco County						Schedule No. 3-A
	Statement of Water Operations						Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted	Revenue	Revenue
	Description	Utility	ments	Per Utility	ments	Test Year	Increase	Requirement

1	Operating Revenues:	$833,526	$398,145	$1,231,671	($326,012)	$905,659	$188,824	$1,094,483
							20.85%
	Operating Expenses
2	Operation & Maintenance	$659,410	($76,065)	$583,345	($75,591)	$507,754		$507,754

3	Depreciation	182,883	(18,733)	164,150	(479)	163,671		163,671

4	Amortization	0	0	0	0	0		0

5	Taxes Other Than Income	153,181	(32,277)	120,904	(28,088)	92,816	8,497	101,313

6	Income Taxes	170	96,936	97,106	(79,091)	18,015	67,857	85,872

7	Total Operating Expense	995,644	(30,139)	965,505	(183,248)	782,257	76,354	858,611

8	Operating Income	($162,118)	$428,284	$266,166	($142,764)	$123,402	$112,470	$235,872

9	Rate Base	$3,196,080		$3,488,175		$3,212,941		$3,212,941

10	Rate of Return	(5.07%)		7.63%		3.84%		7.34%

	Utilities, Inc. of Florida - Pasco County						Schedule No. 3-B
	Statement of Wastewater Operations						Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted	Revenue	Revenue
	Description	Utility	ments	Per Utility	ments	Test Year	Increase	Requirement

1	Operating Revenues:	$477,751	$92,636	$570,387	($42,697)	$527,690	($63,346)	$464,343
							-12.00%
	Operating Expenses
2	Operation & Maintenance	$134,890	$223,423	$358,313	($33,004)	$325,309		$325,309

3	Depreciation	38,575	10,302	48,877	(8,245)	40,632		40,632

4	Amortization	0	0	0	0	0		0

5	Taxes Other Than Income	0	45,282	45,282	(9,001)	36,281	(2,851)	33,430

6	Income Taxes	67	31,443	31,510	8,595	40,105	(22,765)	17,341

7	Total Operating Expense	173,532	310,450	483,982	(41,655)	442,327	(25,615)	416,712

8	Operating Income	$304,219	($217,814)	$86,405	($1,043)	$85,362	($37,731)	$47,631

9	Rate Base	$733,110		$1,133,102		$648,809		$648,809

10	Rate of Return	41.50%		7.63%		13.16%		7.34%

	Utilities, Inc. of Florida - Pasco County	Schedule No. 3-C
	Adjustment to Operating Income	Docket No. 120209-WS
	Test Year Ended 12/31/11

	Explanation	Water	Wastewater


	Operating Revenues
1	Remove requested final revenue increase	($327,912)	($44,343)
2	To reflect the appropriate service revenue based on billing determinants. (Issue 11)	0	1,503
3	To reflect appropriate misc. service charge and impute incremental increase. (Issue 11)	1,900	143
	Total	($326,012)	($42,697)

	Operation and Maintenance Expense
1	Audit adjustments agreed to by Utility. (Issue 2)	($2,610)	($499)
2	Reflect appropriate amount of computer maintenance expense (Issue 3)	(5,313)	(2,095)
3	Reflect contractual services - engineering adjustment. (Issue 4)	(1,367)	(534)
4	Contested audit adjustments. (Issue 12)	(212)	(85)
5	Reflect salary and benefits adjustment. (Issue 13)	(56,179)	(22,156)
6	Reflect appropriate rate case expense. (Issue 14)	(9,428)	(3,721)
7	Reflect appropriate bad debt expense. (Issue 15)	4,971	(3,914)
8	Reflect additional adjustment to O&M expense. (Issue 16)	(5,452)	0
	Total	($75,591)	($33,044)

	Depreciation Expense - Net
1	Audit adjustments agreed to by Utility. (Issue 2)	$3,677	$1,463
2	Phoenix Project adjustment. (Issue 3)	(3,437)	(1,365)
3	Reflect contractual services - engineering adjustment. (Issue 4)	62	0
4	Reflect appropriate pro forma plant adjustments. (Issue 5)	(781)	0
5	Post-Agenda Audit Adjustments	0	(8,343)
	Total	($479)	($8,245)

	Taxes Other Than Income
1	RAFs on revenue adjustments above.	($14,671)	($1,921)
2	Reflect contractual services - engineering adjustment. (Issue 4)	20	0
3	Reflect appropriate pro forma plant adjustments. (Issue 5)	4,514	0
4	Reflect salary and benefits adjustment. (Issue 13)	(17,952)	(7,080)
	Total	($28,088)	($9,001)

Utilities, Inc. of Florida – Pasco County				Schedule No. 4-D
Monthly Wastewater Rates - Summertree				Docket No. 120209-WS
Test Year Ended 12/31/11
	Utility		Utility	Staff	4 Year
SUMMERTREE	Current		Requested	Recommended	Rate
	Rates		Final	Rates	Reduction
Residential
Base Facility Charge - All Meter Sizes	$14.49		$15.71	$12.75	$0.46

Charge per 1,000 Gallons – Residential*	$12.31		$13.35	$10.83	$0.39
*6,000 gallon cap

General Service
Base Facility Charge by Meter Size
5/8"X3/4"	$14.49		$15.71	$12.75	$0.46
3/4”	$21.74		$23.58	$19.12	$0.69
1"	$36.23		$39.29	$31.87	$1.15
1-1/2"	$72.45		$78.57	$63.73	$2.30
2"	$115.92		$125.72	$101.96	$3.68
3"	$231.82		$251.41	$203.91	$7.36
4"	$362.23		$392.84	$318.62	$11.50
6"	$724.47		$785.69	$637.24	$23.00

Charge per 1,000 Gallons – General Service	$16.34		$17.72	$14.37	$0.52


Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons		$51.42	$55.76	$45.24
6,000 Gallons		$88.35	$95.81	$77.73
10,000 Gallons		$88.35	$95.81	$77.73

Utilities, Inc. of Florida – Pasco County						Schedule No. 4-E
Monthly Wastewater Rates - Orangewood						Docket No. 120209-WS
Test Year Ended 12/31/11
	Utility			Utility	Staff		4 Year
ORANGEWOOD	Current			Requested	Recommended		Rate
	Rates			Final	Rates		Reduction
Residential
Base Facility Charge - All Meter Sizes	$11.16			$12.10	$9.82		$0.35

Charge per 1,000 Gallons – Residential*	$8.29			$8.99	$7.29		$0.26
*6,000 gallon cap

Multi-Residential
Flat Rate	$27.91			$30.27	$24.55		$0.89

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons		$36.03	$39.07		$31.69
6,000 Gallons		$60.90	$66.04		$53.56
10,000 Gallons		$60.90	$66.04		$53.56

	Utilities, Inc. of Florida - Pinellas County				Schedule No. 2-A
	Schedule of Water Rate Base				Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted
	Description	Utility	ments	Per Utility	ments	Test Year

1	Plant in Service	$528,337	$268,059	$796,396	($2,625)	$793,771

2	Land and Land Rights	6,258	0	6,258	0	6,258

3	Non-used and Useful Components	0	0	0	0	0

4	Accumulated Depreciation	(160,642)	37,529	(123,113)	(20,668)	(143,781)

5	CIAC	(138,847)	(25,205)	(164,052)	0	(164,052)

6	Amortization of CIAC	82,734	0	82,734	0	82,734

7	Working Capital Allowance	0	34,870	34,870	(7,578)	27,292

8	Rate Base	$317,840	$315,253	$633,093	($30,871)	$602,222

	Utilities, Inc. of Florida - Pinellas County	Schedule No. 2-C
	Adjustments to Rate Base	Docket No. 120209-WS
	Test Year Ended 12/31/11

	Explanation	Water


	Plant In Service
1	Audit adjustments agreed to by Utility. (Issue 2)	$5,891
2	Phoenix Project adjustment. (Issue 3)	(5,300)
3	Reflect appropriate pro forma plant adjustments. (Issue 5)	(3,216)
	Total	($2,625)

	Accumulated Depreciation
1	Audit adjustments agreed to by Utility. (Issue 2)	($19,831)
2	Phoenix Project adjustment. (Issue 3)	706
3	Reflect appropriate pro forma plant adjustments. (Issue 5)	(1,543)
	Total	($20,668)

	Working Capital
	Reflect appropriate working capital allowance. (Issue 7)	($7,578)

	Utilities, Inc. of Florida - Pinellas County						Schedule No. 3-A
	Statement of Water Operations						Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted	Revenue	Revenue
	Description	Utility	ments	Per Utility	ments	Test Year	Increase	Requirement

1	Operating Revenues:	$95,795	$83,941	$179,736	($74,560)	$105,176	$62,327	$167,503
							59.26%
	Operating Expenses
2	Operation & Maintenance	$63,729	$13,292	$77,021	($9,278)	$67,743		$67,743

3	Depreciation	18,945	3,360	22,305	(52)	22,253		22,253

4	Amortization	0	0	0	0	0		0

5	Taxes Other Than Income	3,273	9,599	12,872	1,525	14,397	2,805	17,201

6	Income Taxes	25	18,038	18,063	(24,366)	(6,303)	22,398	16,096

7	Total Operating Expense	85,972	44,289	130,261	(32,172)	98,089	25,203	123,292

8	Operating Income	$9,823	$39,652	$49,475	($42,388)	$7,087	$37,124	$44,211

9	Rate Base	$317,840		$633,093		$602,222		$602,222

10	Rate of Return	3.09%		7.81%		1.18%		7.34%

Utilities, Inc. of Florida – Pinellas County			Schedule No. 4-B
Monthly Water Rates			Docket No. 120209-WS
Test Year Ended 12/31/11
	Utility	Utility	Staff	4 Year
	Current	Requested	Recommended	Rate
	Rates	Final	Rates	Reduction
Residential Service and General Service
Base Facility Charge by Meter Size
5/8"X3/4"	$7.17	$12.32	$11.45	$0.44
1"	$17.93	$30.81	$28.63	$1.09
1-1/2"	$35.85	$61.60	$57.25	$2.18
2"	$57.38	$98.60	$91.60	$3.48
3"	$114.75	$197.17	$183.20	$6.96
4"	$179.29	$308.07	$286.25	$10.88
6"	$358.58	$616.15	$572.50	$21.76

Charge per 1,000 Gallons - Residential
0 - 3,000 gallons	$3.94	$6.77	N/A	N/A
3,001 - 6,000 gallons	$4.38	$7.53	N/A	N/A
All Gallons	N/A	N/A	$6.49	$0.25


Charge per 1,000 Gallons - General Service	$4.03	$6.92	$6.49	$0.25

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons	$18.99	$32.63	$30.92
6,000 Gallons	$32.13	$55.22	$50.39
10,000 Gallons	$49.65	$85.34	$76.35

	Utilities, Inc. of Florida - Seminole County				Schedule No. 2-A
	Schedule of Water Rate Base				Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted
	Description	Utility	ments	Per Utility	ments	Test Year

1	Plant in Service	$3,708,270	$1,371,637	$5,079,907	($115,293)	$4,964,614

2	Land and Land Rights	(1,714)	17,929	16,215	0	16,215

3	Non-used and Useful Components	0	0	0	0	0

4	Accumulated Depreciation	(384,499)	(1,331,122)	(1,715,621)	(123,598)	(1,839,219)

5	CIAC	(1,214,604)	3,587	(1,211,017)	286,468	(924,549)

6	Amortization of CIAC	863,089	(35,497)	827,592	(117,692)	709,900

7	Working Capital Allowance	0	210,184	210,184	(45,488)	164,696

8	Rate Base	$2,970,542	$236,718	$3,207,260	($115,604)	$3,091,656

	Utilities, Inc. of Florida - Seminole County				Schedule No. 2-B
	Schedule of Wastewater Rate Base				Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted
	Description	Utility	ments	Per Utility	ments	Test Year

1	Plant in Service	$1,613,859	$1,764,826	$3,378,685	($96,503)	$3,282,182

2	Land and Land Rights	180,351	(161,339)	19,012	0	19,012

3	Non-used and Useful Components	0	0	0	0	0

4	Accumulated Depreciation	(37,627)	(1,024,809)	(1,062,436)	2,216	(1,060,220)

5	CIAC	(1,042,129)	327,749	(714,380)	0	(714,380)

6	Amortization of CIAC	556,978	(56,515)	500,463	(2,195)	498,268

7	CWIP	10	(10)	0	0	0

8	Working Capital Allowance	0	111,517	111,517	(24,137)	87,380

9	Rate Base	$1,271,442	$961,419	$2,232,861	($120,620)	$2,112,241

	Utilities, Inc. of Florida - Seminole County	Schedule No. 2-C
	Adjustments to Rate Base	Docket No. 120209-WS
	Test Year Ended 12/31/11

	Explanation	Water	Wastewater


	Plant In Service
1	Audit adjustments agreed to by Utility. (Issue 2)	$44,171	$23,431
2	Phoenix Project adjustment. (Issue 3)	(30,919)	(16,473)
3	Reflect appropriate pro forma plant adjustments. (Issue 5)	(128,545)	(2,999)
4	Post-Agenda Audit Adjustments	0	(100,462)
	Total	($115,293)	($96,503)

	Accumulated Depreciation
1	Audit adjustments agreed to by Utility. (Issue 2)	($132,100)	($70,073)
2	Phoenix Project adjustment. (Issue 3)	4,127	2,186
3	Reflect appropriate pro forma plant adjustments. (Issue 5)	4,374	(675)
4	Post-Agenda Audit Adjustments	0	70,778
	Total	($123,598)	$2,216

	CIAC
1	Audit adjustments agreed to by Utility. (Issue 2)	$286,468	$269,264
2	Post-Agenda Audit Adjustments	0	(269,264)
	Total	$286,468	$0

	Accumulated Amortization of CIAC
	Audit adjustments agreed to by Utility. (Issue 2)	($117,692)	($2,195)

	Working Capital
	Reflect appropriate working capital allowance. (Issue 7)	($45,488)	($24,137)

	Utilities, Inc. of Florida - Seminole County						Schedule No. 3-A
	Statement of Water Operations						Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted	Revenue	Revenue
	Description	Utility	ments	Per Utility	ments	Test Year	Increase	Requirement

1	Operating Revenues:	$989,369	$179,145	$1,168,514	($291,641)	$876,873	$215,440	$1,092,313
							24.57%
	Operating Expenses
2	Operation & Maintenance	$780,041	($246,630)	$533,411	($63,137)	$470,274		$470,274

3	Depreciation	148,603	26,149	174,752	31,048	205,800		205,800

4	Amortization	0	0	0	0	0		0

5	Taxes Other Than Income	180,766	(60,342)	120,424	(23,478)	96,946	9,695	106,640

6	Income Taxes	(23,913)	114,800	90,887	(85,678)	5,209	77,422	82,631

7	Total Operating Expense	1,085,497	(166,023)	919,474	(141,246)	778,228	87,117	865,345

8	Operating Income	($96,128)	$345,168	$249,040	($150,395)	$98,645	$128,323	$226,968

9	Rate Base	$2,970,542		$3,207,260		$3,091,656		$3,091,656

10	Rate of Return	(3.24%)		7.76%		3.19%		7.34%

	Utilities, Inc. of Florida - Seminole County						Schedule No. 3-B
	Statement of Wastewater Operations						Docket No. 120209-WS
	Test Year Ended 12/31/11
		Test Year	Utility	Adjusted	Staff	Staff
		Per	Adjust-	Test Year	Adjust-	Adjusted	Revenue	Revenue
	Description	Utility	ments	Per Utility	ments	Test Year	Increase	Requirement

1	Operating Revenues:	$863,881	$166,740	$1,030,621	($213,905)	$816,716	$70,033	$886,749
							8.57%
	Operating Expenses
2	Operation & Maintenance	$394,656	$230,877	$625,533	($107,219)	$518,314		$518,314

3	Depreciation	73,644	15,855	89,499	1,567	91,066		91,066

4	Amortization	0	0	0	0	0		0

5	Taxes Other Than Income	0	78,943	78,943	(16,246)	62,697	3,151	65,849

6	Income Taxes	(12,688)	75,964	63,276	(31,990)	31,286	25,168	56,454

7	Total Operating Expense	455,612	401,639	857,251	(153,887)	703,364	28,319	731,683

8	Operating Income	$408,269	($234,899)	$173,370	($60,018)	$113,352	$41,714	$155,066

9	Rate Base	$1,271,442		$2,232,861		$2,112,241		$2,112,241

10	Rate of Return	32.11%		7.76%		5.37%		7.34%

	Utilities, Inc. of Florida - Seminole County	Schedule No. 3-C
	Adjustment to Operating Income	Docket No. 120209-WS
	Test Year Ended 12/31/11

	Explanation	Water	Wastewater


	Operating Revenues
1	Remove requested final revenue increase.	($294,501)	($214,360)
2	To reflect appropriate misc. service charge and impute incremental increase. (Issue 11)	2,860	455
	Total	($291,641)	($213,905)

	Operation and Maintenance Expense
1	Audit adjustments agreed to by Utility. (Issue 2)	($4,232)	($362)
2	Reflect appropriate amount of computer maintenance expense. (Issue 3)	(4,778)	(2,535)
3	To adjust purchased wastewater for excess I & I. (Issue 6)	0	(63,900)
4	Contested audit adjustments. (Issue 12)	(191)	(102)
5	Reflect salary and benefits adjustment. (Issue 13)	(41,937)	(22,250)
6	Reflect appropriate rate case expense. (Issue 14)	(8,488)	(4,503)
7	Reflect appropriate bad debt expense. (Issue 15)	5,210	(8,196)
8	Reflect additional adjustments to O&M expense. (Issue 16)	(8,721)	(5,370)
	Total	($63,137)	($107,219)

	Depreciation Expense - Net
1	Audit adjustments agreed to by Utility. (Issue 2)	38,917	3,303
2	Phoenix Project adjustment. (Issue 3)	($3,092)	($1,647)
3	Reflect appropriate pro forma plant adjustments. (Issue 5)	(4,778)	(88)
	Total	$31,048	$1,567

	Taxes Other Than Income
1	RAFs on revenue adjustments above.	($13,124)	($9,626)
2	Reflect appropriate pro forma plant adjustments. (Issue 5)	8,407	3,334
3	Reflect salary and benefits adjustment. (Issue 13)	(18,761)	(9,954)
	Total	($23,478)	($16,246)

[1] See Order No. PSC-10-0585-PAA-WS, issued September 22, 2010, in Docket No. 090462-WS, In re: Application for rate increase in Marion, Orange, Pasco, Pinellas, and Seminole Counties by Utilities, Inc. of Florida.

[2] See Order No. PSC-13-0332-PCO-WS, issued July 22, 2013 (Interim Order).

[3] UIF did not request interim rates for Pasco County wastewater, but is asking for a final revenue increase.

[4] Staff calculated a revenue decrease of $1,922, or 1.83 percent, for Pinellas County water based on its maximum authorized ROE. However, since Pinellas County water was currently operating within its authorized range, no interim revenue decrease was granted by the Commission.

[5] See Order No. PSC-13-0549-PCO-WS, issued October 30, 2013.

[6] See Document No. 03430-13, filed June 19, 2013.

[7] The resulting impact on the Utility’s overall cost of capital is a 7-basis points reduction.

UTILITIES, INC. OF FLORIDA (ORANGE COUNTY) STAFF RECOMMENDED WATER RATE STRUCTURES AND RATES
Test Year Rate Structure and Rates		Staff Recommended Rate Structure and Rates
3 Tier Inclining Block Rate Structure Rate Factors 1.00, 1.25, and 1.50 BFC = 26%		3-Tier Inclining Block Rate Structure Rate Factors 1.00, 1.50, and 1.75 BFC =26%
BFC	$8.03	BFC	$8.61
0-6 kgals (non-discretionary)	$3.27	0-6 kgals (non-discretionary)	$3.49
6-8 kgals	$3.46	6-8 kgals	$3.61
8-16 kgals	$4.33	8-16 kgals	$5.41
16+ kgals	$5.18	16+ kgals	$6.31
Typical Monthly Bills		Typical Monthly Bills
Consumption (kgals)		Consumption (kgals)
0	$8.03	0	$8.61
1	$11.30	1	$12.10
3	$17.84	3	$19.08
6	$27.65	6	$29.55
10	$43.23	10	$47.59
20	$89.93	20	$105.29

Utilities, Inc. of Florida - Orange County				Schedule No. 4-B
Water Monthly Service Rates				Docket No. 120209-WS
Test Year Ended 12/31/11
	Utility	Commission	Utility	Staff	4 Year
	Current	Approved	Requested	Recommended	Rate
	Rates	Interim	Final	Rates	Reduction
Residential and General Service
Base Facility Charge by Meter Size
5/8"x3/4"	$8.03	$9.25	$10.86	$8.61	$0.31
1"	$20.10	$23.15	$27.18	$21.53	$0.77
1-1/2"	$40.19	$46.29	$54.34	$43.05	$1.54
2"	$64.31	$74.08	$86.95	$68.88	$2.47
3"	$128.61	$148.15	$173.88	$137.76	$4.93
4"	$200.96	$231.49	$271.70	$215.25	$7.71
6"	$401.91	$462.96	$543.38	$430.50	$15.41

Charge per 1,000 Gallons - Residential
0 - 6,000 gallons	$3.27	$3.77	$4.42	$3.49	$0.12
6,001 - 8,000 gallons	$3.46	$3.99	$4.68	$3.61	$0.13
8,001 - 16,000 gallons	$4.33	$4.99	$5.85	$5.41	$0.19
Over 16,000 gallons	$5.18	$5.97	$7.00	$6.31	$0.23

Charge per 1,000 Gallons - General Service	$3.55	$4.09	$4.80	$3.99	$0.14

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons	$17.84	$20.56	$24.12	$19.08
6,000 Gallons	$27.65	$31.87	$37.38	$29.55
10,000 Gallons	$43.23	$49.83	$58.44	$47.59

UTILITIES, INC. OF FLORIDA (PASCO COUNTY) STAFF RECOMMENDED WATER RATE STRUCTURES AND RATES
Test Year Rate Structure and Rates		Staff Recommended Rate Structure and Rates
BFC/gallonage rate structure BFC = 45%		BFC/gallonage rate structure BFC =40 %
BFC	$12.35	BFC	$12.03
0-3 kgals (non-discretionary)	$3.71	All gallons	$5.51
3+ kgals	$4.02
Typical Monthly Bills		Typical Monthly Bills
Consumption (kgals)		Consumption (kgals)
0	$12.35	0	$12.03
1	$16.06	1	$17.54
3	$23.48	3	$28.56
6	$35.54	6	$45.09
10	$51.62	10	$67.13
20	$91.82	20	$122.23

Utilities, Inc. of Florida – Pasco County			Schedule No. 4-B
Monthly Water Rates			Docket No. 120209-WS
Test Year Ended 12/31/11
	Utility	Commission	Utility	Staff	4 Year
ORANGEWOOD	Current	Approved	Requested	Recommended	Rate
	Rates	Interim	Final	Rates	Reduction
Residential and General Service
Base Facility Charge by Meter Size
5/8"X3/4"	$12.35	$12.99	$16.89	$12.03	$0.47
3/4"	$18.54	$19.50	$25.36	$18.05	$0.71
1"	$30.89	$32.50	$42.25	$30.08	$1.18
1-1/2"	$61.76	$64.97	$84.48	$60.15	$2.36
2"	$98.82	$103.96	$135.17	$96.24	$3.77
3"	$197.63	$207.91	$270.32	$192.48	$7.55
4"	$308.80	$324.86	$422.38	$300.75	$11.79
6"	$617.61	$649.73	$844.77	$601.50	$23.58

Charge per 1,000 Gallons - Residential
0-3,000 Gallons	$3.71	$3.90	$5.07	N/A	N/A
Over 3,000 Gallons	$4.02	$4.23	$5.50	N/A	N/A
All Gallons	N/A	N/A	N/A	$5.51	$0.22

Charge per 1,000 Gallons – General Service	$3.78	$3.98	$5.17	$5.51	$0.22

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons	$23.48	$24.69	$32.10	$28.56
6,000 Gallons	$35.54	$37.38	$48.60	$45.09
10,000 Gallons	$51.62	$54.30	$70.60	$67.13

Utilities, Inc. of Florida – Pasco County			Schedule No. 4-C
Monthly Water Rates			Docket No. 120209-WS
Test Year Ended 12/31/11
	Utility	Commission	Utility	Staff	4 Year
SUMMERTREE	Current	Approved	Requested	Recommended	Rate
	Rates	Interim	Final	Rates	Reduction
Residential and General Service
Base Facility Charge by Meter Size
5/8"X3/4"	$12.35	$12.99	$16.89	$11.41	$0.45
3/4"	$18.54	$19.50	$25.36	$17.12	$0.67
1"	$30.89	$32.50	$42.25	$28.53	$1.12
1-1/2"	$61.76	$64.97	$84.48	$57.05	$2.24
2"	$98.82	$103.96	$135.17	$91.28	$3.58
3"	$197.63	$207.91	$270.32	$182.56	$7.16
4"	$308.80	$324.86	$422.38	$285.25	$11.18
6"	$617.61	$649.73	$844.77	$570.50	$22.36

Charge per 1,000 Gallons - Residential
0-3,000 Gallons	$3.71	$3.90	$5.07	N/A	N/A
Over 3,000 Gallons	$4.02	$4.23	$5.50	N/A	N/A
All Gallons	N/A	N/A	N/A	$5.23	$0.21

Charge per 1,000 Gallons – General Service	$3.78	$3.98	$5.17	$5.23	$0.21

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons	$23.48	$24.69	$32.10	$27.10
6,000 Gallons	$35.54	$37.38	$48.60	$42.79
10,000 Gallons	$51.62	$54.30	$70.60	$63.71

UTILITIES, INC. OF FLORIDA (PINELLAS COUNTY) STAFF RECOMMENDED WATER RATE STRUCTURES AND RATES
Test Year Rate Structure and Rates		Staff Recommended Rate Structure and Rates
BFC/gallonage rate structure BFC = 45%		BFC/ gallonage rate structure BFC = 45%
BFC	$7.17	BFC	$11.45
0-3 kgals (non-discretionary)	$3.94	All gallons	$6.49
3+ kgals	$4.38
Typical Monthly Bills		Typical Monthly Bills
Consumption (kgals)		Consumption (kgals)
0	$7.17	0	$11.45
1	$11.11	1	$17.94
3	$18.99	3	$30.92
6	$32.13	6	$50.39
10	$49.65	10	$76.35
20	$93.45	20	$141.25

UTILITIES, INC. OF FLORIDA (SEMINOLE COUNTY) STAFF RECOMMENDED WATER RATE STRUCTURES AND RATES
Test Year Rate Structure and Rates		Staff Recommended Rate Structure and Rates
3-Tier Inclining Block Rate Structure Rate Factors 1.00, 1.75, and 2.25 BFC = 25%		3-Tier Inclining Block Rate Structure Rate Factors 1.00, 1.75, and 2.25 BFC = 25%
BFC	$7.23	BFC	$8.38
0-6 kgals (non-discretionary)	$2.77	0-6kgals	$3.45
6-8 kgals	$3.12	6-8 kgals	$5.18
8-16 kgals	$5.37	8-16 kgals	$6.90
16+ kgals	$6.92	16+ kgals	$8.63
Typical Monthly Bills		Typical Monthly Bills
Consumption (kgals)		Consumption (kgals)
0	$7.23	0	$8.38
1	$10.00	1	$11.83
3	$15.54	3	$18.73
6	$23.85	6	$29.08
10	$40.83	10	$53.24
20	$100.73	20	$129.16

Utilities, Inc. of Florida – Seminole County						Schedule No. 4-B
Monthly Water Rates						Docket No. 120209-WS
Test Year Ended 12/31/11
		Utility		Commission	Utility	Staff	4 Year
		Current		Approved	Requested	Recommended	Rate
		Rates		Interim	Final	Rates	Reduction
Residential and General Service
Base Facility Charge by Meter Size:
5/8"X3/4"		$7.23		$7.59	$9.72	$8.38	$0.30
1"		$18.08		$18.98	$24.30	$20.95	$0.75
1-1/2"		$36.17		$37.96	$48.61	$41.90	$1.49
2"		$57.86		$60.74	$77.75	$67.04	$2.39
3"		$115.72		$121.47	$155.50	$134.08	$4.77
4"		$180.83		$189.81	$243.00	$209.50	$7.46
6"		$361.64		$379.61	$485.97	$419.00	$14.92

Charge per 1,000 Gallons - Residential
0 - 6,000 gallons			$2.77	$2.91	$3.72	$3.45	$0.12
6,001 - 8,000 gallons			$3.12	$3.28	$4.19	$5.18	$0.18
8,001- 16,000 gallons			$5.37	$5.64	$7.22	$6.90	$0.25
Over 16,000 gallons			$6.92	$7.27	$9.30	$8.63	$0.31

Charge per 1,000 Gallons - General Service			$3.50	$3.67	$4.70	$4.36	$0.16

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 gallons	$15.54			$16.32	$20.88	$18.73
6,000 gallons	$23.85			$25.05	$32.04	$29.08
10,000 gallons	$40.83			$42.89	$54.86	$53.24

Utilities, Inc. of Florida – Seminole County				Schedule No. 4-D
Monthly Wastewater Rates				Docket No. 120209-WS
Test Year Ended 12/31/11
	Utility	Commission	Utility	Staff	4 Year
	Current	Approved	Requested	Recommended	Rate
	Rates	Interim	Final	Rates	Reduction
Residential
Flat Rate - Unmetered	$42.79	$43.50	$54.04	N/A	N/A

Base Facility Charge - All Meter Sizes	$12.63	$12.84	$15.95	$13.14	$0.30
Charge per 1,000 Gallons - Residential*
* 8,000 gallon cap	N/A	N/A	N/A	$8.13	$0.19
*10,000 gallon cap	$7.06	$7.17	$8.92	N/A	N/A

General Service
Base Facility Charge by Meter Size
5/8"x3/4"	$12.63	$12.84	$15.95	$13.14	$0.30
1"	$31.60	$32.12	$39.91	$32.85	$0.75
1-1/2"	$63.17	$64.22	$79.78	$65.70	$1.50
2"	$101.08	$102.75	$127.65	$105.12	$2.41
3"	$202.16	$205.49	$255.31	$210.24	$4.81
4"	$315.87	$321.08	$398.91	$328.50	$7.52
6"	$631.74	$642.16	$797.82	$657.00	$15.05

Charge per 1,000 Gallons - General Service	$8.46	$8.60	$10.68	$9.76	$0.22

Typical Residential 5/8" x 3/4" Meter Bill Comparison
3,000 Gallons	$33.81	$34.35	$42.71	$37.53
6,000 Gallons	$54.99	$55.86	$69.47	$61.92
10,000 Gallons	$83.23	$84.54	$105.15	$78.18