Case Background
On May 9, 2017,
Florida Public Utilities Company (FPUC electric and gas divisions), Florida
Public Utilities Company-Fort Meade, Florida Public Utilities
Company-Indiantown Division, and the Florida Division of Chesapeake Utilities
Corporation (Joint Petitioners or Companies) filed a joint petition requesting
Commission approval of modifications to tariff sheets regarding customer deposits.
On June 23, 2017, the joint petitioners filed an additional tariff revision to
the FPUC electric tariff. The Joint Petitioners operate under the Chesapeake
Utilities Corporation, a Delaware-based energy company.
During the 2015
session, the Florida Legislature enacted House Bill 7109 which was incorporated
into Chapter 2015-129, Laws of Florida. Among other things, the legislation
created Section 366.05(1)(b) and (c), Florida Statutes (F.S.). Subsection
(1)(b) addresses billing periods and Subsection (1)(c) addresses customer
deposits. These laws became effective on July 1, 2015. The Commission adopted
amendments to Rules 25-6.097 (Customer Deposits) and 25-6.100 (Customer
Billings) for the electric utilities; and amendments to Rules 25-7.083
(Customer Deposits) and 25-7.085 (Customer Billing) for the gas utilities, Florida
Administrative Code (F.A.C.), to implement the laws enacted in July 2015.
The
Joint Petitioners are requesting tariff modifications at this time to ensure
that the Companies’ tariff language continues to conform to the applicable
statutes and Commission rules. The Companies’ waived the 60-day suspension date
until July 13, 2017. The Commission has jurisdiction in this matter pursuant to
Sections 366.03, 366.05, and 366.06, F.S.
Discussion
of Issues
Issue 1:
Should the Commission approve the Joint Petitioners’
proposed tariff modifications?
Recommendation:
Yes, the Commission should approve the Joint
Petitioners’ proposed tariff modifications, as reflected in Attachment A,
effective July 13, 2017. (Guffey)
Staff Analysis:
The Joint Petitioners’ proposed tariff modifications
are designed to conform their tariffs to applicable statutes and Commission
rules. At this time, the FPUC gas division, FPUC-Fort Meade, FPUC-Indiantown,
and the Florida Division of Chesapeake Utilities Corporation do not have tiered
rate schedules; therefore, these gas companies are not proposing any changes to
their tariffs as a result of changes to Section 366.05(1)(b), F.S., and Rule
25-7.085, F.A.C. The Joint Petitioners’ proposed tariff modifications are
addressed below.
Customer Deposits
Section 366.05(1)(c), F.S., provides that for an existing
account, the total deposit may not exceed two months of average actual charges.
For a new service request, the total deposit may not exceed two months of
projected charges. Once a new customer has had continuous service for a
12-month period, the amount of the deposit shall be recalculated using actual
data. Any difference between the projected and actual amounts must be resolved
by the customer paying the additional amount that may be billed by the utility
or the utility returning any overcharge.
The Commission amended Rules 25-6.097(1), and 25-7.083, F.A.C.,
to state that the utility’s methodology for determining customer deposits for
existing and new accounts shall conform to Section 366.05(1)(c), F.S.
The prior rule language already required that the total amount of a deposit not
exceed twice the average monthly bill. The Joint Petitioners’ proposed
amendments to the electric and gas tariffs conform to the new statutory
language regarding the recalculation of the deposit after 12-months.
Billing Period for FPUC Electric Tariff
Section 366.05(1)(b), F.S., provides that if the
Commission authorizes a public utility to charge tiered rates based upon levels
of usage and to vary its regular billing period, the utility may not charge a
customer a higher rate because of an increase in usage attributable to an
extension of the billing period; however, the regular meter reading date may
not be advanced or postponed more than five days for routine operating reasons
without prorating the billing for the period. The Commission amended Rule
25-6.100, F.A.C., to implement the statutory changes.
The prior rule specified that the regular meter reading date may be advanced or
postponed not more than 5 days without a proration of the billing for the
period, but did not address the application of tiered rates to extended billing
periods. Tiered rates, such as FPUC’s residential energy charges, apply a
higher energy charge to usage above 1,000 kilowatt-hours.
FPUC-Electric proposed new language to Tariff Sheet No. 28
to reflect the Section 366.05(1)(b), F.S., statutory requirements and to
include the Company’s current billing practices in its tariff. The revised
tariff sheet addresses both the proration of charges when billing periods are
varied by more than five days, as well as the prohibition against charging
higher tiered rates if the extension of a billing period of more than five days
causes a customer’s energy consumption to exceed the Company’s tier threshold
of 1,000 kilowatt-hours.
Conclusion
Based on a review of the applicable statutes, Commission rules,
and proposed tariffs filed by FPUC (electric and gas divisions), FPUC-Fort
Meade, FPUC-Indiantown Division, and the Florida Division of Chesapeake
Utilities Corporation, staff believes that the tariff sheet revisions conform
to the applicable statutes and Commission rules. Therefore, staff recommends
that the Commission approve the requested modifications to tariff sheets, as
reflected in Attachment A, effective July 13, 2017.
Issue 2:
Should this docket be closed?
Recommendation:
If Issue 1 is approved and a protest is filed within
21 days of the issuance of the order, the tariffs should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order. (Brownless)
Staff Analysis:
If Issue 1 is approved and a protest is filed within
21 days of the issuance of the order, the tariffs should remain in effect, with
any revenues held subject to refund, pending resolution of the protest. If no
timely protest is filed, this docket should be closed upon the issuance of a
consummating order.
FPUC-Electric
First Revised Sheet No. 12
First Revised Sheet No. 14
First Revised Sheet No. 28
FPUC-Natural Gas
Seventh Revised Sheet No. 13
First Revised Sheet No. 13.1
Florida Division of Chesapeake Utilities Corporation
Second Revised Sheet No. 12
Fifth Revised Sheet No. 32
Third Revised Sheet No. 33
Florida Public Utilities Company-Indiantown Division
Third Revised Sheet No. 47
Third Revised Sheet No. 48
First Revised Sheet No. 49
Florida Public Utilities Company-Fort Meade
Second Revised Sheet No. 11
First Revised Sheet No. 14
