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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
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TO: |
Office of Commission Clerk (Stauffer) |
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FROM: |
Division of Engineering (Wright, Ellis) Office of the General Counsel (Murphy) |
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RE: |
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AGENDA: |
12/11/18 – Regular Agenda – Interested Persons May Participate |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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Per Order No. PSC-2017-0383-PAA-SU, Beaches is required to file copies of the final invoices and cancelled checks for all Phase II pro forma O&M and plant items by December 27, 2018. |
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SPECIAL INSTRUCTIONS: |
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ESAD
Enterprises, Inc. d/b/a Beaches Sewer Systems, Inc. (Beaches or Utility) is a
Class C wastewater-only utility operating in Gulf County, Florida. Docket
records indicate the Utility serves approximately 316 residential and 4 general
service wastewater customers, in addition to 45 prepaid connections. However,
Beaches has recently communicated that approximately 76 homes within the
Utility’s service territory are uninhabitable and are not receiving wastewater
service due to storm damage from Hurricane Michael. Water service is provided
by the City of Port St. Joe.
Beaches
filed its application for a staff-assisted rate case on July 12, 2016. By Order
No. PSC-2017-0383-PAA-SU (the PAA Order) issued October 4, 2017, in this
docket, the Florida Public Service Commission (Commission) approved a Phase I
revenue requirement and rates.[1]
The PAA Order further provided that consideration of Phase II rates is
conditioned upon Beaches completing certain pro forma operation and maintenance
(O&M) and plant items within 12 months of the issuance of a Consummating Order
in this docket and submitting a copy of the final invoices and cancelled checks
for all of these projects within 60 days after this period. The Consummating
Order was issued on October 27, 2017.[2]
Therefore, the pro forma O&M and plant items were to be completed by October
27, 2018, with their associated documentation to be submitted by December 27,
2018.
The
pro forma O&M and plant items consisted of clearing vegetation from
retention ponds, purchasing a portable generator and installing electrical
hookups to supplement its operation, replacing two lift station pumps and a
control panel, purchasing a blower, removing sand and grit from the wastewater
treatment plant, and repairing the fencing surrounding the facility. The PAA
Order provided that if Beaches encountered any unforeseen events that would
impede the completion of the pro forma O&M and plant items, it should
immediately notify the Commission in writing.
On
October 31, 2018, Beaches notified staff that it would not be able to meet the
deadline for completing the Phase II pro forma O&M and plant items. The
Utility requested that it be granted an extension until December 26, 2018, to
complete the projects, and that it be granted an extension until January 26,
2019, to submit the associated documentation. The Commission has jurisdiction
pursuant to Sections 367.081, 367.0814, and 367.121, Florida Statutes.