State of Florida |
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 (Teitzman) |
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FROM: |
Division of Economics (Coston) Office of the General Counsel (Crawford) |
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RE: |
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AGENDA: |
05/05/20 – Regular Agenda – Tariff Filing – Interested Persons May Participate |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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SPECIAL INSTRUCTIONS: |
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On April 9, 2020,
Sebring Gas Systems, Inc. (Sebring or utility) petitioned for approval of an
emergency modification to its tariff sheet No. 48 which addresses delinquent
bills and late payment charges. On March 1, 2020, Governor Ron DeSantis
declared a public health emergency in Florida as a result of the outbreak of
the COVID-19 coronavirus and on March 9, 2020, the Governor declared a state of
emergency and implemented the state’s Emergency Management Plan. In addition,
the Governor has issued additional Executive Orders to address the current
emergency to include a statewide “Safer at Home” requirement. As a result of
this emergency, the utility recognizes the economic impact to some residential
and commercial customers. Many businesses are struggling financially and have instituted
lay-offs or limited their employees’ hours.
Sebring states
that during this public emergency, it does not plan to disconnect service to
customers for non-payment, as allowed under its current tariff. However, Sebring’s
current tariff does not provide the utility the ability to suspend late payment
charges during this, or similar, emergency
declarations. The proposed tariff modification would allow the utility
flexibility to waive late payment charges during emergency situations, such as
natural disasters and the current public health emergency.
Sebring’s revised
tariff sheet is Attachment 1 to this recommendation. The Commission has
jurisdiction over this matter pursuant to Sections 366.04, 366.05, 366.06,
Florida Statutes.
Issue 1: Should the
Commission approve Sebring’s proposed modifications to Tariff Sheet No. 48?
Recommendation: Yes,
the Commission should approve the modifications to Tariff Sheet No. 48,
effective May 5, 2020. (Coston)
Staff Analysis: Currently,
Sebring’s tariff does not provide the utility the ability to waive late payment
charges for any reason. This proposed modification would provide the utility
with the flexibility to waive late fees during natural disasters and declared public
emergencies issued by an authorized governmental body, including the current
public health emergency. The language in this modification is similar to tariff
language approved by the Commission for Florida Power & Light Company[1] and Duke Energy Florida, LLC.[2]
Staff believes the modifications will allow Sebring the
flexibility to mitigate customer impact during the current public health
emergency and the related Executive Orders issued by Governor DeSantis while still
reliably serving its customers. Therefore, staff recommends the Commission
should approve the modifications to Tariff Sheet No. 48, effective May 5, 2020.
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 tariff 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. (Crawford)
Staff Analysis:
If Issue 1 is approved and 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. If no timely protest is filed, this docket should be closed upon the issuance of a consummating order.
[1] Order No. PSC-92-0912A-FOF-EI, issued September 16, 1992, in Docket No. 920800-EI, In re: Petition by Florida Power & Light Company to Waive Certain Service Charges For Good-Paying Customers. See Tariff Sheet No. 4.020.
[2] Order No. PSC-2020-0096-TRF-EI, issued April 6, 2020, in Docket No. 2020095-EI, In re: Petition of approval of emergency modification to Duke Energy’s rate schedule SC-1, tariff sheet 6.110 by Duke Energy Florida, LLC..