Case Background
South Sumter Utility Company, LLC (SSU or Utility) is a Class C
utility which provides service in Sumter County to approximately 1,854 water
and wastewater customers. The Utility is in the Southwest Florida Management
District and is not in a water use caution area. In its 2018 Annual Report, the
Utility reported operating revenues of $3,220 for water and $4,136 for
wastewater, and a net operating loss of $218,749 for water and $226,407 for
wastewater.
On January
8, 2020, pursuant to Section 367.045, Florida Statutes (F.S.), the Utility
applied for an amendment to delete part of its service territory from
Certificate Nos. 669-W and 571-S. The Utility does not currently provide water
or wastewater service to this area. The Utility requested this territory be
deleted from the service area because of the separation by the Florida Turnpike
and the related difficulty in extending service to the area. For these reasons,
SSU believes it is not the best alternative for water and wastewater service to
the area. The Commission has jurisdiction pursuant to Section 367.045, F.S.
Discussion
of Issues
Issue 1:
Should the Commission approve SSU’s
application for amendment of Certificate Nos. 669-W and 571-S to delete
territory from its certificated service area in
Sumter County?
Recommendation:
Yes. The Commission should approve the application filed
by SSU to delete territory, as reflected on Attachment A, from its certificated
service area, effective the day of the Commission’s vote. The resultant order
should serve as SSU’s amended certificate and should be retained by the
Utility. (M. Watts)
Staff Analysis:
As stated, on January 8, 2020, SSU applied for an
amendment to delete a portion of its certificated area. The area proposed to be
deleted (deletion area) is currently undeveloped.
The deletion area is planned to
be developed to serve approximately 1,161 equivalent residential connections.
However, the deletion area is separated from adjacent SSU territory by
Florida’s Turnpike. SSU stated in its application that the reason for the
proposed deletion is the difficulty in extending service across Florida’s
Turnpike. In response to staff’s first data request, SSU stated that a newly
created water and wastewater service provider, Gibson Place Utility Company,
LLC (Gibson), is the best alternative to provide water and wastewater service
to the deletion area.
Staff has been advised that Gibson, which is affiliated with the Villages,
plans to file an application for original water and wastewater certificates to
serve territory that will include the territory being deleted from SSU’s
certificated territory.
An adequate service territory map and a territory
description have been provided as prescribed by Rule 25-30.036(4)(e) and (g),
Florida Administrative Code (F.A.C.). A description of the territory requested
to be deleted by the Utility is appended to this recommendation as Attachment
A. The Utility submitted an affidavit with its January 8, 2020, application
consistent with Rule 25-30.036(4)(k), F.A.C., stating that it has tariffs and
annual reports on file with the Commission. Within its application, the Utility indicated it had filed its 2018
Annual Report. The Utility has requested an additional extension through June
1, 2020, to file its 2019 Annual Report. In addition, the application
contains proof of compliance with the noticing provisions set forth in Rule
25-30.030, F.A.C. No objections to the application have been received and the
time for filing such has expired.
Staff recommends that it is in the public interest to
approve the application filed by SSU to amend its water certificate to delete
the territory shown on Attachment A from its certificated service area. The
resultant Commission order should serve as SSU’s amended certificate and should
be retained by the Utility.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If staff’s recommendation in Issue 1 is approved, no
further action is required, and the docket should be closed. (Lherisson)
Staff Analysis:
If Issue 1 is approved, no further action is required, and
the docket should be closed.
