FLORIDA PUBLIC SERVICE COMMISSION
ADDENDUM*
COMMISSION CONFERENCE AGENDA
CONFERENCE DATE AND
TIME: Tuesday, July 10,
2018, 9:30 a.m.
LOCATION: Betty Easley Conference Center, Joseph P. Cresse Hearing Room 148
DATE ISSUED: July 3, 2018
NOTICE
Persons affected by Commission action on certain items on this agenda
may be allowed to address the Commission, either informally or by oral
argument, when those items are taken up for discussion at this conference.
These items are designated by double asterisks (**) next to the item number.
To participate informally, affected persons need only appear at the
conference and request the opportunity to address the Commission on an item
listed on the agenda. Informal participation is not permitted: (1) on
dispositive motions and motions for reconsideration; (2) when a recommended
order is taken up by the Commission; (3) in a rulemaking proceeding after the
record has been closed; or (4) when the Commission considers a post-hearing
recommendation on the merits of a case after the close of the record. The
Commission allows informal participation at its discretion in certain types of
cases (such as declaratory statements and interim rate orders) in which an
order is issued based on a given set of facts without hearing. See Florida
Administrative Code Rules 25-22.0021 (agenda conference participation) and
25-22.0022 (oral argument).
Conference agendas, staff recommendations, vote sheets, and
transcripts are available online at http://www.floridapsc.com,
by selecting Conferences
& Meeting Agendas and
Commission Conferences of the FPSC.
An official vote of "move staff" denotes that the Item's
recommendations were approved.
In accordance with the Americans with Disabilities Act, persons needing
a special accommodation to participate at this proceeding should contact the
Office of Commission Clerk no later than five days prior to the conference at
2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850 or 850-413-6770
(Florida Relay Service, 1-800-955-8770 Voice or 1-800-955-8771 TDD). Assistive
Listening Devices are available upon request from the Office of Commission Clerk,
Gerald L. Gunter Building, Room 152.
The Commission Conference has a live video broadcast the day of the
conference, which is available from the FPSC website. Upon completion of the conference, the
archived video will be available from the website by selecting Conferences & Meeting Agendas, then Audio and Video Event Coverage.
EMERGENCY CANCELLATION OF CONFERENCE: If a named storm or other
disaster requires cancellation of the Conference, Commission staff will attempt
to give timely notice. Notice of cancellation will be provided on the
Commission’s website (http://www.floridapsc.com) under
the Hot Topics link on the home page. Cancellation can also be confirmed by
calling the Office of Commission Clerk at 850-413-6770.
If you have any questions, contact the Office of Commission Clerk at 850-413-6770 or Clerk@psc.state.fl.us.
PAA A) Application for Certificate of Authority to Provide Telecommunications Service.
|
DOCKET NO. |
COMPANY NAME |
|
WANRack, LLC |
Recommendation: The Commission should approve the action requested in the docket referenced above and close this docket.
2**PAA Docket No. 20180113-EU – Petition for variance from or waiver of individual metering requirements of Rule 25-6.049(5) and (6), F.A.C., by 4000 South Ocean Property Owner, LLLP.
|
Critical Date(s): |
Commission must grant or deny the Petition by August 9, 2018, pursuant to Section 120.542(8), F.S. |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Clark |
||
|
Staff: |
GCL: Page ECO: Guffey |
||
Should the Commission grant the Owner’s request for waiver of the requirements of Rule 25-6.049(5) and (6), F.A.C.?
Yes. The Owner has demonstrated that the purpose of the underlying statutes will be achieved by other means and the application of the rule would create both a substantial hardship and a violation of the principles of fairness. The Owner, as a master meter customer, should be put on notice that: 1) Hyde Beach House must allocate the cost of electricity to the individual condominium unit owners using a reasonable apportionment method, consistent with Rule 25-6.049(9)(a), F.A.C.; and 2) the waiver is effective for only so long as Hyde Beach House is operated and licensed as a transient occupancy facility. At such time as the condominium is no longer so operated and licensed, Hyde Beach House must inform FPL of this fact within 10 days and request that FPL install individual meters on all the occupancy units. In the event such a conversion is required, Hyde Beach House will be solely responsible for the cost of such conversion, consistent with Rule 25-6.049(7), F.A.C.
Issue 2:
Should this docket be closed?
Yes, 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, this docket should be closed upon issuance of a consummating order.
3**PAA Docket No. 20180099-TP – Commission approval of Florida Telecommunications Relay, Inc.'s 2018-2019 proposed budget.
|
Critical Date(s): |
September 1, 2018 - Effective date of Florida Telecommunications Relay, Inc. budget. Notification of any change in the Telecommunications Access System Act surcharge must be made to carriers prior to September 1, 2018 |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Fay |
||
|
Staff: |
IDM: Williams, Bates, Fogleman, Long GCL: Page |
||
(Proposed Agency Action for Issue 1 - Issue
2 is Procedural)
Issue 1:
Should the Commission approve FTRI’s proposed budget as presented in Attachment A of staff’s memorandum dated June 27, 2018, for Fiscal Year 2018/2019, effective September 1, 2018, and should the Commission maintain the current Telecommunications Relay Service (TRS) surcharge at $0.10 per month?
Staff recommends that the Commission reduce FTRI’s proposed budget expenses for Fiscal Year 2018/2019 by $19,823 for legal expense and by $39,469 for insurance expense. Staff also recommends that the Commission allow FTRI to transfer $203,746 from the Reserve Account to offset projected expense increases resulting from the new relay contract, and $57,723 in additional expense primarily related to equipment, employee compensation, and auditing. Staff recommends that the Commission order all local exchange companies to continue billing the $0.10 surcharge for Fiscal Year 2018/2019. Staff further recommends that the Commission order FTRI to continue to require detailed, itemized bills from its legal counsel and to continue in-house analyses for Insurance-Health/Life/Disability and Retirement expenses. Staff recommends that FTRI be ordered to provide updated results of its analyses to staff by January 31, 2019.
Issue 2:
Should the Commission approve the appointment of Commissioner Margaret Brown to the TASA Advisory Committee effective immediately?
Yes. Staff recommends that the Commission approve the appointment of Commissioner Margaret Brown to the TASA Advisory Committee effective immediately.
Issue 3:
Should this docket be closed?
Recommendation: Yes. A Consummating
Order should be issued for Issue 1, unless a person whose substantial interests
are affected by the Commission’s decision files a protest within 21 days of the
issuance of the proposed agency action. The docket should be closed upon
issuance of the Consummating Order.
4** Docket No. 20180118-TL – Implementation of the 689 area code overlay in the existing 407/321 area code.
|
Critical Date(s): |
None |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Brown |
||
|
Staff: |
IDM: Deas, Fogleman, Wendel APA: Casey GCL: Murphy |
||
Issue 1:
Should the Commission lift its suspension of the implementation plan for the 689 overlay of the 407/321 NPA?
Yes, Staff recommends that the Commission lift its suspension of the implementation plan for the 689 overlay of the 407/321 NPA. Staff also recommends that the Commission direct NANPA to notify the Commission of the proposed implementation date for the 689 overlay once it has been determined.
Issue 2:
Should this docket be closed?
No. This Docket should remain open for the Commission to acknowledge the implementation date for the 689 area code overlay.
4A Docket No. 20160251-EI – Petition for limited proceeding for recovery of incremental storm restoration costs related to Hurricane Matthew by Florida Power & Light Company.
|
Critical Date(s): |
None |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Brown |
||
|
Staff: |
AFD: Vogel, D. Buys, Mouring ECO: Draper ENG: P. Buys, Graves, King GCL: Brownless, Dziechciarz |
||
(Post-hearing -
Participation is limited to Commissioners and Commission staff.)
Consideration and decision regarding the May 14, 2018 Stipulation and Settlement Agreement as requested in the Joint Motion for Approval of Settlement Agreement.
5** Docket No. 20180084-EI – Petition for limited proceeding for approval to include in base rates the revenue requirement for the Citrus combined cycle project, by Duke Energy Florida, LLC.
|
Critical Date(s): |
12/2/18 (8-Month Effective Date) |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Fay |
||
|
Staff: |
ENG: Lee AFD: D. Smith ECO: Guffey GCL: Schrader, Crawford |
||
Issue 1:
Should the Commission approve DEF’s petition to include in base rates the revenue requirement for the Citrus Combined Cycle Project?
Yes. Consistent with the 2017 Settlement, DEF’s 2018 GBRA for the Citrus Combined Cycle Project reflects the costs pursuant to which the need determination was granted.
Issue 2:
Should the Commission approve DEF’s proposed tariffs and associated charges needed to implement the two phases of the Citrus Combined Cycle Project?
Yes. The Commission should give staff administrative authority to approve tariffs and associated charges that implement the Commission vote on Issue 1 regarding the Citrus Combined Cycle Project which will be placed in service in two phases. The tariffs and associated charges for Phase 1 should go into effect with the first billing cycle in October 2018, and the tariffs and associated charges for Phase 2 of the Citrus Combined Cycle Project should go into effect with the first billing cycle in December 2018. If the commercial in-service date of Phase 1 of the project is delayed, the tariff should become effective with the first billing cycle after Phase 1 is completed and placed in commercial service. If Phase 2 is delayed, the tariff should become effective with the first billing cycle after Phase 2 is completed and placed in commercial service. If the Commission order is protested, DEF should implement the rates subject to refund pending the results of any subsequent hearing.
Issue 3:
Should this docket be closed?
Yes. If Issues 1 and 2 are approved and no timely protest is filed, this docket should be closed upon the issuance of a consummating order. If a protest is filed within 21 days of the issuance of the order, the tariff should remain in effect, with any revenues held subject to refund, pending resolution of the protest.
6**PAA Docket No. 20170246-SU – Application for authority to transfer facilities and Certificate No. 515-S in Polk County from West Lakeland Wastewater, Inc. to West Lakeland Wastewater, LLC.
|
Critical Date(s): |
None |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Polmann |
||
|
Staff: |
ENG: Wooten, Watts AFD: Andrews, Fletcher, Norris ECO: Sibley GCL: Crawford, Janjic |
||
(Proposed Agency Action for Issues 2 and 3)
Issue 1:
Should the transfer of Certificate No. 515-S in Polk County from West Lakeland, Inc. to West Lakeland, LLC be approved?
Yes. The transfer of the wastewater system and Certificate No. 515-S is in the public interest and should be approved effective the date of the Commission vote. The resultant order should serve as the Buyer’s certificate and should be retained by the Buyer. The existing rates and charges should remain in effect until a change is authorized by the Commission in a subsequent proceeding. The tariffs reflecting the transfer should be effective for services rendered or connections made on or after the stamped approval date on the tariffs, pursuant to Rule 25-30.475, Florida Administrative Code (F.A.C.) West Lakeland, LLC should be responsible for filing the 2018 Annual Report, all future annual reports, and Regulatory Assessment Fees (RAFs) subsequent to the date of closing.
Issue 2:
What is the appropriate net book value for the West Lakeland Wastewater, LLC’s wastewater system for transfer purposes?
The net book value of the wastewater system for transfer purposes is negative $68,857, as established by Order No. PSC-13-0327-PAA-SU. An acquisition adjustment should not be included in rate base.
Issue 3:
Should the Utility’s service availability charges be discontinued?
Yes. WLWI’s service availability charges should be discontinued. West Lakeland, LLC should provide notice to customers who have requested service within 12 calendar months prior to the month the application was filed to the present pursuant to Rule 25-30.4345, F.A.C. In the event there is new development in the Utility’s service territory, the Utility should file an application for new service availability charges.
Issue 4:
Should this docket be closed?
If no protest to the proposed agency action is filed by a substantially affected person within 21 days of the date of the issuance of the order, a consummating order should be issued and the docket should be closed administratively upon Commission staff’s verification that the revised tariff sheets have been filed, the Buyer has notified the Commission in writing that it has adjusted its books in accordance with the Commission’s decision, and proof that appropriate noticing has been done pursuant to Rule 25-30.4345, F.A.C.
7**PAA Docket No. 20180092-EQ – Petition for approval of arrangement for totalized meter interconnection service, by Tampa Electric Company.
|
Critical Date(s): |
None |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Administrative |
||
|
Staff: |
ECO: Doherty, Draper ENG: Salvador GCL: Trierweiler |
||
Issue 1:
Should the Commission approve the proposed arrangement between TECO and MacDill, as shown in Attachment A of staff’s memorandum dated June 27, 2018, effective July 10, 2018?
Yes. The Commission should approve the proposed arrangement between TECO and MacDill, as shown in Attachment A of staff’s memorandum dated June 27, 2018, effective July 10, 2018
Issue 2:
Should this docket be closed?
Yes. If no protest is filed by a person whose substantial interests are affected within 21 days of the issuance of the Order, this docket should be closed upon the issuance of a Consummating Order.
8** Docket No. 20180123-EI – Petition for approval of modifications to Section No. IV, general rules and regulations governing electric service, Part VIII billing, residential and non-residential budget billing, by Duke Energy Florida, LLC.
|
Critical Date(s): |
07/23/18 (60-Day Suspension Date) |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Administrative |
||
|
Staff: |
ECO: Doherty GCL: Trierweiler |
||
Issue 1:
Should the Commission approve DEF’s petition for approval of budget billing for commercial customers?
Yes. The Commission should approve DEF’s petition for approval of budget billing for commercial customers. DEF’s proposed tariffs should become effective on July 10, 2018.
Issue 2:
Should this docket be closed?
Yes. If a protest is filed within 21 days of the issuance of the order, these tariffs should remain in effect with any increase 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.
9**PAA Docket No. 20170265-GU – Application for approval of new depreciation rates effective January 1, 2018, by St. Joe Natural Gas Company, Inc.
|
Critical Date(s): |
None |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Clark |
||
|
Staff: |
ECO: Higgins, Wu AFD: Cicchetti GCL: Schrader |
||
Issue 1:
Should the currently prescribed depreciation rates for St. Joe Natural Gas Company be revised?
Yes. The review of St. Joe’s plant and depreciation-related information indicates a need to revise the Company’s currently prescribed depreciation rates.
Issue 2:
What should be the implementation date for newly proposed depreciation rates?
If approved by the Commission, staff recommends January 1, 2018, for implementing the depreciation rates shown on Attachments A and B of staff’s memorandum dated June 27, 2018.
Issue 3:
What are the appropriate depreciation parameters and resulting rates?
Staff recommends the Commission approve the lives, reserve percentages, net salvage percentages, and resulting depreciation rates applicable to St. Joe’s investments that are shown on Attachment A of staff’s memorandum dated June 27, 2018. As shown on Attachment B of staff’s memorandum dated June 27, 2018, the corresponding depreciation expense effect of staff’s rate recommendations is a decrease of $41,258 annually, or approximately 14.4 percent, from current depreciation rate levels.
Issue 4:
Should the current amortization of investment tax credits (ITCs) and flow back of excess deferred income taxes (EDITs) be revised to reflect the approved depreciation rates and amortization schedules?
Yes. The current amortization of ITCs should be revised to match the actual recovery periods for the related property. The Company should file detailed calculations of the revised ITC amortization at the same time it files its earnings surveillance report covering the period ending December 31, 2018, as specified in Rule 27-7.1352, F.A.C.
Issue 5:
Should this docket be closed?
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, this docket should be closed upon the issuance of a consummating order.
10**PAA Docket No. 20170147-WS – Application for staff-assisted rate case in Levy County by FIMC Hideaway, Inc.
|
Critical Date(s): |
11/21/18 (15-Month Effective Date (SARC)) |
||
|
Commissioners Assigned: |
All Commissioners |
||
|
Prehearing Officer: |
Brown |
||
|
Staff: |
ECO: Sibley, Hudson AFD: Wilson, Brown ENG: Lewis GCL: DuVal |
||
(Proposed Agency Action - Except for Issue
Nos. 12, 13, and 14)
Is the quality of service provided by FIMC Hideaway, Inc. satisfactory?
Staff recommends that the overall quality of service for FIMC should be considered marginal until the utility can sufficiently demonstrate that it meets the Department of Environmental Protection’s (DEP) secondary water standards. Staff additionally recommends that the utility file the results of its next primary and secondary water standards tests with the Commission. Additional action, if any, should be considered after review of these test results.
What are the used and useful (U&U) percentages of FIMC’s WTP, WWTP, water distribution system, and wastewater collection system?
FIMC’s WTP, WWTP, water distribution system, and wastewater collection system should be considered 100 percent U&U. Staff additionally recommends that no adjustment be made to purchased power and chemical expenses for excessive unaccounted for water (EUW) or infiltration and inflow (I&I).
What is the appropriate average test year water and wastewater rate bases for FIMC Hideaway, Inc.?
The appropriate average test year water rate base for FIMC is $36,054 and the average test year wastewater rate base is $7,935.
What is the appropriate return on equity and overall rate of return for FIMC Hideaway, Inc.?
The appropriate return on equity (ROE) is 9.01 percent with a range of 8.01 percent to 10.01 percent. The appropriate overall rate of return is 9.33 percent.
What are the appropriate test year revenues for the water and wastewater systems of FIMC Hideaway, Inc.?
The appropriate test year revenues are $41,680 for the water system and $52,504 for the wastewater system.
What is the appropriate amount of operating expense for FIMC Hideaway, Inc.?
The appropriate amount of operating expense for the utility is $44,608 for water and $53,077 for wastewater.
Should the Commission utilize the operating ratio methodology as an alternative method for calculating the wastewater revenue requirement for FIMC Hideaway, Inc., and if so, what is the appropriate margin?
Yes. The Commission should utilize the operating ratio methodology for calculating the wastewater revenue requirement for FIMC. The margin should be 10 percent of O&M expense for wastewater.
What is the appropriate revenue requirement?
The appropriate revenue requirement is $47,972 for water and $57,646 for wastewater, resulting in an annual increase of $6,292 for water (15.10 percent) and $5,142 for wastewater (9.79 percent).
What are the appropriate rate structure and rates for FIMC Hideaway’s water and wastewater systems?
The recommended rate structures and monthly water and wastewater rates are shown on Schedule Nos. 4-A and 4-B of staff’s memorandum dated June 27, 2018. The utility should file revised tariff sheets and a proposed customer notice to reflect the Commission-approved rates. The approved rates should be effective for service rendered on or after the stamped approval date on the tariff sheet pursuant to Rule 25-30.475(1), F.A.C. In addition, the approved rates 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 this notice.
What are the appropriate initial customer deposits for FIMC’s water and wastewater systems?
The appropriate initial customer deposits should be $43 for the single family residential 5/8 inch x 3/4 inch meter size for water and $55 for the single family residential 5/8 inch x 3/4 inch meter size for wastewater. The initial customer deposits for all other residential meter sizes and all general service meter sizes should be two times the average estimated monthly bill. The approved initial customer deposits should be effective for services rendered or connections made on or after the stamped approval date on the tariff sheets pursuant to Rule 25-30.475, F.A.C. The utility should be required to collect the approved deposits until authorized to change them by the Commission in a subsequent proceeding.
Should FIMC Hideaway, Inc.’s existing service availability charges be revised, and if so, what are the appropriate charges?
Yes. Staff recommends that FIMC’s existing service
availability charges be revised. Staff recommends a meter installation charge
of $142.40 for a 5/8 inch x 3/4 inch meter and actual cost for all other meter
sizes. Staff recommends a uniform water main extension charge of $375 per ERC
(ERC = 350 gpd). All other service availability
charges should be discontinued. FIMC should provide notice to customers who
have requested service within 12 calendar months prior to the month the
application was filed to the present. The approved charges should be effective
for connections made on or after the stamped approval date on the tariff
sheets. The utility should provide proof of the date notice was given within 10
days of the date of the notice.
What is the appropriate amount by which rates should be reduced four years after the published effective date to reflect the removal of the amortized rate case expense?
FIMC’s water and wastewater rates should be reduced as shown on Schedule Nos. 4-A and 4-B of staff’s memorandum dated June 27, 2018, to remove rate case expense grossed-up for RAFs and amortized over a four-year period. The decrease in rates should become effective immediately following the expiration of the four-year rate case expense recovery period, pursuant to Section 367.081(8), F.S. The utility should be required to file revised tariff sheets and a proposed customer notice setting forth the lower rates and the reason for the reduction no later than one month prior to the actual date of the required rate reduction. If FIMC files this reduction in conjunction with a price index or pass-through rate adjustment, separate data should be filed for the price index and/or pass-through increase or decrease and the reduction in the rates due to the amortized rate case expense.
Should the recommended rates be approved for FIMC Hideaway, Inc. on a temporary basis, subject to refund with interest, in the event of a protest filed by a party other than the utility?
Yes. Pursuant to Section 367.0814(7), F.S., the recommended rates should be approved for the utility on a temporary basis, subject to refund with interest, in the event of a protest filed by a party other than the utility. The utility should file revised tariff sheets and a proposed customer notice to reflect the Commission-approved rates. The approved rates should be effective for service rendered on or after the stamped approval date on the tariff sheet, pursuant to Rule 25-30.475(1), F.A.C. In addition, the temporary rates should not be implemented until staff has approved the proposed notice, and the notice has been received by the customers. Prior to implementation of any temporary rates, the utility should provide appropriate security. If the recommended rates are approved on a temporary basis, the rates collected by the utility should be subject to the refund provisions discussed in the analysis portion of staff’s memorandum dated June 27, 2018. In addition, after the increased rates are in effect, pursuant to Rule 25-30.360(6), F.A.C., the utility should file reports with the Commission Clerk’s office no later than the 20th of every month indicating the monthly and total amount of money subject to refund at the end of the preceding month. The report filed should also indicate the status of the security being used to guarantee repayment of any potential refund.
Should the utility be required to notify the Commission, in writing, that it has adjusted its books in accordance with the Commission’s decision?
Yes. The utility should be required to notify the Commission, in
writing, that it has adjusted its books in accordance with the Commission’s
decision. FIMC should submit a letter within 90 days of the final order
in this docket, confirming that the adjustments to all the applicable National
Association of Regulatory Utility Commissioners (NARUC) Uniform System of
Accounts (USOA) primary accounts, as shown on Schedule Nos. 5-A and 5-B of
staff’s memorandum dated June 27, 2018, have been made to the utility’s books
and records. In the event the utility needs additional time to complete the
adjustments, notice should be provided not less than seven days prior to
the deadline. Upon providing good cause, staff should be given administrative
authority to grant an extension of up to 60 days.
Should this docket be closed?
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 notice have been filed by the utility and approved by staff, and the utility has provided staff with proof that the adjustments for all the applicable NARUC USOA primary accounts have been made. Once these actions are complete, this docket should be closed administratively.