Discussion
of Issues
Issue 1:
Should the Commission approve Lakeside’s proposed
tariff to increase miscellaneous service charges in Lake County?
Recommendation:
Yes. The miscellaneous service charges identified in
Table 1-5 are appropriate and should be approved. The charges should be effective on or after
the stamped approval date on the tariff pursuant to Rule 25-30.475, Florida
Administrative Code (F.A.C.). In addition, the approved charges should not be
implemented until staff has approved the proposed customer notice and the
notice has been received by the customers. The utility should provide proof of
the date notice was given within 10 days of the date of the notice. (Bruce)
Staff Analysis:
Lakeside’s current miscellaneous service charges
were approved in Docket No. 120317-WS.
Section 367.091, F.S., authorizes the Commission to change miscellaneous service
charges. Lakeside’s request to increase its miscellaneous charges was
accompanied by its reason for requesting the charges, as well as the cost
justification required by Section 367.091 (6), F.S. The cost justification
provided by the utility reflects the same labor and transportation costs relied
on to set the LP Waterworks, a sister company, miscellaneous service charges. The
calculations for the recommended charges for miscellaneous services are shown
in Tables 1-1 through 1-4. Table 1-5 displays the utility’s current and staff’s
recommended miscellaneous service charges rounded up to the nearest tenth.
Initial Connection Charge
The
initial connection charge is levied for service initiation at a location where
service did not exist previously. A Utility representative makes one trip when
performing the service of an initial connection. Based on labor and
transportation to and from the service territory, staff recommends initial
connection charges for Lakeside’s water and wastewater systems of $31.10 for
normal hours and $36.20 for after hours. The calculations are shown in Table 1-1.
Table 1-1
Initial Connection Charge
Calculation
|
Activity
|
Normal Hours Cost
|
Activity
|
After Hours Cost
|
|
Administrative Labor
($28/hr x 1/4 hr)
|
$7.00
|
Administrative Labor
($28/hr x 1/4 hr)
|
$7.00
|
|
Field Labor
($30.42/hr x 1/3 hr)
|
$10.14
|
Field Labor
($45.63/hr x 1/3 hr)
|
$15.21
|
|
Transportation
($0.535/mile x 26 miles-to/from)
|
$13.91
|
Transportation
($0.535/mile x 26 miles-to/from)
|
$13.91
|
|
Total
|
$31.05
|
Total
|
$36.12
|
Source: Utility’s Cost Justification
Normal Reconnection Charge
A normal reconnection charge is levied for the transfer of
service subsequent to a customer requested disconnection. A normal reconnection
requires two trips, which includes one to turn service on and the other to turn
service off. Based on labor and transportation to and from the service
territory, staff recommends normal reconnection charges for Lakeside’s water
and wastewater systems of $57.10 for normal hours and $64.70 for after hours. The
calculations are shown in Table 1-2.
Table 1-2
Normal Reconnection Charge
Calculation
|
Activity
|
Normal Hours Cost
|
Activity
|
After
Hours Cost
|
|
Administrative Labor
($28/hr x1/4hr x 2)
|
$14.00
|
Administrative Labor
($28/hr x1/4hr)
|
$14.00
|
|
Field Labor
($30.42/hr x 1/4 hr x 2)
|
$15.21
|
Field Labor
($45.63/hr x 1/4hr x 2)
|
$22.82
|
|
Transportation
($0.535/mile x 26 miles-to/from x 2)
|
$27.82
|
Transportation
($0.535/mile x 26 miles-to/from x 2)
|
$27.82
|
|
Total
|
$57.03
|
Total
|
$64.64
|
Source: Utility’s Cost Justification
Violation Reconnection Charge
The
violation reconnection charge is levied prior to reconnection of an existing
customer after discontinuance of service for cause. The service performed for
violation reconnection requires two trips, which includes one trip to turn off
service and a subsequent trip to turn on service once the violation has been
remedied. Based on labor and transportation to and from the service territory,
staff recommends violation reconnection charges for Lakeside’s water system of
$57.10 for normal hours and $64.70 for after hours. However for Lakeside’s
wastewater system, this charge should remain at actual cost pursuant to Rule
25-30.460(1)(c), F.A.C. The calculations are shown in Table 1-3.
Table 1-3
Violation Reconnection
Charge Calculation
|
Activity
|
Normal
Hours Cost
|
Activity
|
After
Hours Cost
|
|
Administrative Labor
($28/hr x1/4hr x 2)
|
$14.00
|
Administrative Labor
($28/hr x1/4hr x 2)
|
$14.00
|
|
Field Labor
($30.42/hr x 1/4 hr x 2)
|
$15.21
|
Field Labor
($45.63hr x 1/4 hr x 2)
|
$22.82
|
|
Transportation
($0.535/mile x 26 miles-to/from) x 2
|
$27.82
|
Transportation
($0.535/mile x 26 miles-to/from) x 2
|
$27.82
|
|
Total
|
$57.03
|
Total
|
$64.64
|
Source: Utility’s Cost Justification
Premises Visit Charge
The premises visit charge is levied when a service
representative visits premises at the customer’s request for complaint
resolution and the problem is found to be the customer’s responsibility. In
addition, the premises visit charge can be levied when a service representative
visits a premises for the purpose of discontinuing service for nonpayment of a
due and collectible bill, and does not discontinue service because the customer
pays the service representative or otherwise makes satisfactory arrangements to
pay the bill. A premises visit requires one trip.
Based on
labor and transportation to and from the service territory, staff recommends a
premises visit charge of $31.10 for normal hours and $36.20 for after hours. The
calculations are shown in Table 1-4.
Table 1-4
Premises Visit Charge
Calculation
|
Activity
|
Normal
Hours Cost
|
Activity
|
After
Hours Cost
|
|
Administrative Labor
($28.00/hr x1/4hr)
|
$7.00
|
Administrative Labor
($28.00/hr x1/4hr)
|
$7.00
|
|
Field Labor
($30.42/hr x 1/3 hr)
|
$10.14
|
Field Labor
($45.63/hr x 1/3 hr)
|
$15.21
|
|
Transportation
($0.535/mile x 26 miles-to/from)
|
$13.91
|
Transportation
($0.535/mile x 26 miles-to/from)
|
$13.91
|
|
Total
|
$31.05
|
Total
|
$36.12
|
Source: Utility’s Cost Justification
Conclusion
Based on
the aforementioned, the miscellaneous service charges identified in Table 1-5
are appropriate and should be approved. The charges should be effective on or
after the stamped approval date on the tariff pursuant to Rule 25-30.475,
F.A.C. In addition, the approved charges should not be implemented until staff
has approved the proposed customer notice and the notice has been received by
the customers. The Utility should provide proof of the date notice was given
within 10 days of the date of the notice.
Table 1-5
Miscellaneous Service Charges
|
|
Current
|
Staff Recommended
|
|
|
Normal and After
Hours
|
Normal
Hours
|
After
Hours
|
|
Initial Connection Charge
|
$15.00
|
$31.10
|
$36.20
|
|
Normal Reconnection Charge
|
$15.00
|
$57.10
|
$64.70
|
|
Violation Reconnection Charge
(Water Only)
|
$15.00
|
$57.10
|
$64.70
|
|
Violation Reconnection Charge
(Wastewater Only)
|
Actual Cost
|
Actual Cost
|
|
Premises Visit Charge
|
$10.00
|
$31.10
|
$36.20
|
Source: Staff
Analysis
Issue 2:
Should this docket be closed?
Recommendation:
The docket should remain open pending staff’s
verification that the revised tariff sheets and customer notice have been filed
by the utility and approved by staff. If a protest is filed within 21 days of
the issuance date of the Order, the tariff should remain in effect with the
charge held subject to refund pending resolution of the protest. If no timely
protest is filed, a consummating order should be issued and, once staff
verifies that the notice of the charge has been given to customers, the docket
should be administratively closed. (Janjic, Bruce)
Staff Analysis:
The docket should remain open pending staff’s
verification that the revised tariff sheets and customer notice have been filed
by the utility and approved by staff. If a protest is filed within 21 days of
the issuance date of the Order, the tariff should remain in effect with the
charge held subject to refund pending resolution of the protest. If no timely
protest is filed, a consummating order should be issued and, once staff
verifies that the notice of the charge has been given to customers, the docket
should be administratively closed.
