Case Background
Pluris
Wedgefield, LLC (Pluris or utility) is a Class A utility providing water
service to 1,811 customers and wastewater service to 1,667 customers in Orange
County. Water and wastewater rates were last established for this utility in
2017. According to the utility’s 2018 Annual
Report, operating revenues were $1,507,075 for water and $982,652 for
wastewater and operating expenses were $1,454,960 for water and $970,507 for
wastewater.
On June 18,
2019, the utility applied for approval of an eight inch turbine general service
meter rate in Orange County for both its water and wastewater systems. Pluris
has added a general service customer that receives services through an eight
inch turbine meter. The utility’s existing water and wastewater general service
tariff sheets only provide base facility charges (BFCs) for meters sizes up to
six inches. This recommendation addresses the utility’s request to include in
its water and wastewater tariffs a BFC for an eight inch turbine meter. The
proposed tariffs are shown in Attachment A of the recommendation. The
Commission has jurisdiction pursuant to Sections 367.081 and 367.091, Florida
Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the utility's proposed tariffs
containing the eight inch turbine general service meter be approved?
Recommendation:
Yes. The utility’s proposed tariffs as shown in
Attachment A containing the eight inch turbine general service meter should be
approved as filed because it is consistent with Rule 25-30.437(6), Florida
Administrative Code (F.A.C.). The approved rates should be effective for
service rendered on or after the stamped approval date on the tariff sheets
pursuant to Rule 25-30.475(1), F.A.C. (Sibley)
Staff Analysis:
As stated in the case background, Pluris has added a
general service customer that receives services through an eight inch turbine
meter. The utility’s existing water and wastewater general service tariff
sheets only provide BFCs for meter sizes up to six inches.
The utility’s proposed water BFC of $2,509.20 and
wastewater BFC of $2,784.60 for the eight inch turbine meter is calculated by
using the utility’s existing BFC for the 5/8” x 3/4” meter size of $27.88 for
water and $30.94 for wastewater (Attachment A). This is done using the BFC as
the foundation and applying the American Water Works Association meter
equivalent factor as the usage characteristics onto the foundation (5/8” x 3/4”
meter BFC times 90). This is consistent with Rule 25-30.437(6), F.A.C., which
states that the rates are first established with the 5/8'' x 3/4'' meter as the
foundation and for meter sizes larger than 5/8'', the base facility charge
shall be based on the usage characteristics. The utility anticipates serving
the one water only customer, which provides additional revenues of
approximately $35,000. This represents an approximate revenue increase of 2.3
percent for water and will not have a material effect on the utility’s overall
rate of return.
It is incumbent on public utilities to charge only those
rates filed with and approved by the Commission pursuant to Section 367.081,
F.S. Staff notes that the rate is the appropriate amount for the eight inch
meter size. However, the utility should be cautioned to charge only those rates
reflected in its Commission-approved tariffs.
Based on the above, the utility's proposed tariffs
containing the eight inch turbine general service meter should be approved as
filed because it is consistent with Rule 25-30.437(6), F.A.C. The approved
rates should be effective for service rendered on or after the stamped approval
date on the tariff sheets pursuant to Rule 25-30.475(1), F.A.C.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If Issue
1 is approved, the tariff sheets should become effective on or after the
stamped approval date on the tariff sheets pursuant to Rule 25-30.475, F.A.C.
If a protest is filed within 21 days of the issuance of the Order, the tariff
should remain in effect with the revenues held subject to refund pending
resolution of the protest and the docket should remain open. If no timely protest is filed, the docket
should be closed upon the issuance of a Consummating Order. (Simmons)
Staff Analysis:
If Issue 1 is approved, the tariff sheets should
become effective on or after the stamped approval date on the tariff sheets
pursuant to Rule 25-30.475, F.A.C. If a protest is filed within 21 days of the
issuance date of the Order, the tariff should remain in effect with the revenues
held subject to refund pending resolution of the protest and the docket should
remain open. If no timely protest is filed, the docket should be closed upon
the issuance of a Consummating Order.
