Discussion
of Issues
Issue 1:
Should the Commission propose the amendment of Rule
25-30.335, F.A.C., Customer Billing?
Recommendation:
Yes, the Commission should propose the amendment of
Rule 25-30.335, F.A.C., as set forth in Attachment A. The Commission should
also certify Rule 25-30.335, F.A.C., as a minor violation rule. (Hudson, Bruce, Sibley, Guffey, Cowdery)
Staff Analysis:
The purpose of this
rulemaking is to update and clarify certain provisions in Rule 25-30.335,
F.A.C., Customer Billing, for water and wastewater utilities. Overall, minor
changes to the rule language have been made to update and clarify the
rule. For example, section (1) was
amended to delete the requirement that a bill show the applicable rate schedule
because, unlike electric companies, water and
wastewater utilities do not have multiple rate categories. However,
the primary reason for amending this rule is to update and clarify rule
requirements for billing seasonal customers when they are temporarily not in
residence and to bill customers with different rate structures consistently.
Subsection (3):
Consistency in prorating over a 30-day billing cycle
Under subsection (3) of the current
rule, when service is rendered for less than 50 percent of the normal billing
cycle, the utility must prorate the base facility charge as if the billing
cycle were 30 days. That same subsection states that for service taken under
flat rates, 50 percent of the normal charges may be applied. Subsection
(3) does not address customers paying rates that include minimum usage. Customers
paying rates that include minimum usage have a base facility charge and some
amount (“minimum usage”) of gallons included in their bill. If the customer
uses more than the minimum usage, they pay the gallonage rate on their tariff.
The draft amendments to subsection
(3) clarify that customers who pay for service under flat rates or rates that
include minimum usage will be treated the same as those who pay base facility
charges when service is rendered for less than 50 percent of the billing cycle.
In all cases, the utility must prorate the identified charges over a 30-day
billing cycle. This recommended amendment gives consistency in treatment to all
customers.
Subsection (4):
Consistency in billing out of residence customers who pay base facility
charges and flat or minimum tariff rates
New draft subsection (4) is also
intended to treat customers consistently. This subsection requires all
customers who request a temporary discontinuance of service or are out of
residence to pay the base facility charge or, if applicable, 40 percent of the
flat or minimum tariff rate. Out of residence
customers with a flat or minimum tariff rate structure are required to pay 40
percent of that rate because 40 percent represents the utility’s fixed costs.
It is the equivalent of a base facility charge.
New draft subsection (4) replaces current subsection (8), which requires
a utility to bill the customer the base facility charge regardless of whether
there is any usage, unless the utility has an authorized vacation rate. The reference to vacation rates is obsolete
because no Commission-regulated water or wastewater utility has “vacation rates.”
In addition, unlike new draft subsection
(4), current subsection (8) does not address customers who pay flat or minimum
tariff rates.
Subsection (5): Consistency in billing customers
who request temporary discontinuance of service and those who request permanent
termination of service for six months or less
Over the years, staff has become
aware that some of the Commission’s regulated water and wastewater utilities
have seasonal customers who terminate or disconnect service during the months
they are not in residence, as opposed to requesting a temporary discontinuance
of service. Some of these customers expect that they should not have to pay the
base facility charge or equivalent during the time they were temporarily not in
residence. The current rule does not
address these circumstances. Without clear guidance in the rule, utilities
cannot point to a specific rule provision requiring payment when service is
temporarily discontinued or the customer is out of residence. The recommended
amendments are intended to provide this clarity. The utility incurs fixed costs
in maintaining facilities and having water ready and available upon demand when
the customers return. Paying the base facility charge or, if applicable, 40
percent of the flat or minimum tariff rate by customers who have temporarily
discontinued service, or are out of residence, allows the utility to maintain
revenue stability and the facilities necessary to provide service upon demand.
New draft subsection (5) is added
to clarify that if a customer requests a permanent termination of service and
subsequently requests service at the same location within six months of the
termination, the utility must bill the customer the base facility charges or,
if appropriate, 40 percent of the flat rate or rates that include minimum usage
for the service termination period. Draft subsection (5) states that the
customer must pay these rates and charges to restore service. Six months is an
appropriate time to capture seasonal customers who might leave and return in a
short period of time.
New draft subsection (5)
recognizes that if a customer requests a permanent termination but reinstates
service within six months, that customer is, in effect, the same as a customer
who requests temporary discontinuance of service and is required to pay the
base facility charge or equivalent rate when out of residence. The recommended
amendments in subsection (5) would eliminate a false distinction between
temporary discontinuance of service and permanent termination of service that
is reinstated within six months of termination. In both cases, the utility will
bill the base facility charge or 40 percent of the flat or minimum tariff
rate.
Minor Violation
Rules Certification
Pursuant to Section 120.695, F.S., the agency head must
certify for each rule filed for adoption whether any part of the rule is
designated as a rule the violation of which would be a minor violation. Rule
25-30.335, F.A.C., is currently listed on the Commission’s website as a rule
for which a violation would be minor because violation of the rule would not
result in economic or physical harm to a person or have an adverse effect on
the public health, safety, or welfare or create a significant threat of such
harm. The amendments to the rule would not change its status as minor violation
rules. Thus, staff recommends that the Commission certify Rule 25-30.335,
F.A.C., as a minor violation rule.
Statement of
Estimated Regulatory Costs
Pursuant to Section 120.54(3)(b), F.S., agencies are
encouraged to prepare a statement of estimated regulatory costs (SERC) before
the adoption, amendment, or repeal of any rule. The SERC is appended as
Attachment B to this recommendation.
The SERC concludes that the rule
will not likely directly or indirectly increase regulatory costs in excess of
$200,000 in the aggregate in Florida within one year after implementation. Further, the SERC economic analysis concludes
that the rule will not likely have an adverse impact on economic growth,
private sector job creation or employment, private sector investment, business
competitiveness, productivity, or innovation in excess of $1 million in the
aggregate within five years of implementation. Thus, the rule does not require
legislative ratification pursuant to Section 120.541(3), F.S. In addition, the
SERC states that the rule will not have an adverse impact on small business and
will have no impact on small cities or counties. No regulatory alternatives
were submitted pursuant to paragraph 120.541(1)(a), F.S. None of the
impact/cost criteria established in paragraph 120.541(2)(a), F.S., will be
exceeded as a result of the recommended amendments to Rule 25-30.335, F.A.C.
Conclusion
Based on the foregoing, staff recommends that the Commission
should propose the amendment of Rule 25-30.335, F.A.C., as set forth in Attachment
A. The Commission should also certify Rule 25-30.335, F.A.C., as a minor
violation rule.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If no requests for hearing, information
regarding the SERC, proposals for a lower cost regulatory alternative, or JAPC
comments are filed, the rule should be filed with the Department of State, and
the docket should be closed. (Cowdery)
Staff Analysis:
If no requests for hearing, information regarding
the SERC, proposals for a lower cost regulatory alternative, or JAPC comments
are filed, the rule may be filed with the Department of State and the docket
should be closed.
25-30.335 Customer Billing.
(1)
Except as provided in this rule, a utility must shall render
bills to customers at regular intervals, and each bill must shall
indicate: the billing period covered; the applicable rate schedule;
beginning and ending meter reading; the amount of the bill; the delinquent date
or the date after which the bill becomes past due; and any authorized late
payment charge.
(2)
When a utility is unable to obtain an actual meter read, estimated bills may be
provided.
(a)
If the utility estimates a bill, the bill statement shall prominently show
the word “Estimated” must be prominently displayed on the face of the
bill.
(b)
The utility is obligated to timely correct any problems within the utility’s
control causing the need to estimate bills. In no event may shall
a utility provide an estimated bill to any one customer account more
than four times in any 12-month period due to circumstances that are within the
utility’s control and service obligations.
(c)
Upon issuance of a second estimated bill in a 6-month period, the
utility must shall provide the customer with an explicit written
explanation for the estimation, along with the utility contact information and
the Commission toll-free complaint number, 1(800) 342-3552.
(d)
The utility must shall maintain records, for a minimum of two
years, detailing the number, frequency, and causes of estimated bills, and
those records must which shall be made available upon request to the
Commission or to any party to a rate proceeding for the utility.
(3)
When service is rendered for less than 50 percent of the normal billing cycle,
the utility must shall prorate the base facility charges, flat
rates, or rates that include minimum usage as though the normal billing
cycle were 30 days., except that Tthe utility may
elect not to not issue an initial bill for service if the
service is rendered for during a time period which is
less than 50 percent of the normal billing cycle. Instead, the utility may
elect to issue a single bill combining combine the amount owed
for the service rendered during the initial time period with the amount owed
for the next billing cycle, and issue a single bill for the combined time
period. For service taken under flat rate schedules, 50 percent of the normal
charges may be applied.
(4)
If a customer requests a temporary discontinuance of service or is out of
residence:
(a)
Utilities that have the base facility charge rate structure must continue to
bill the base facility charge.
(b)
Utilities that have a flat rate or a rate that includes minimum usage must bill
the customer 40 percent of the flat or minimum rate contained on the applicable
tariff.
(5)
If a customer requests a permanent termination of service and the same customer
subsequently requests service at the same location within 6 months of the
termination, the utility must bill the customer the base facility charges or 40
percent of the flat rate or rates that include minimum usage for the service
termination period. The customer is responsible for payment of all outstanding
rates and charges for the termination period to restoration of service.
(6)
(4) A utility may not consider a customer delinquent in paying his or
her bill until the 21st day after the utility has mailed or presented the bill
for payment.
(7)
(5) A Each utility must shall establish each
point of delivery as an independent customer account and must shall
calculate the amount of the bill accordingly, except where physical conditions
make it necessary to use additional meters or points of delivery for one class
of service to a single customer on the same premises, or where such multiple
meters or delivery points are used for the convenience of the utility.
(8)
(6) A utility may not incorporate municipal or county franchise fees
into the amount indicated as the cost for service on the customer’s bill. Rather,
the utility must shall show any such franchise fee as a separate
item.
(9)
(7) The utility must shall maintain a record of each
customer’s account for the most current 2 years so as to permit reproduction of
the customer’s bills during the time that the utility provided service to that
customer.
(8)
If a utility utilizes the base facility and usage charge rate structure and
does not have a Commission authorized vacation rate, the utility shall bill the
customer the base facility charge regardless of whether there is any usage.
Rulemaking
Authority 350.127(2), 367.121 FS. Law Implemented 367.091, 367.121 FS.
History–New 9-14-74, Amended 6-21-79, Formerly 25-10.97, 25-10.097, Amended
11-10-86, 11-30-93, 6-17-13, ____________.
