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 rule requirements for billing customers when they are not in residence
and to bill customers with different rate structures consistently. Overall, staff
is recommending several non-substantive amendments to the rule to clarify rule
language. Staff is also recommending a number of substantive amendments to Rule
25-30.335, F.A.C., which are discussed in more detail below.
Subsection (3): Consistency in Prorating over a
30-day Billing Cycle
Draft subsection (3) concerns
prorating bills 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 applicable gallonage
tariff rate.
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): Temporary Discontinuance of
Service
Draft subsection (4) replaces existing subsection (8) that
requires a utility to bill customers 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 The reference to vacation rates is
obsolete because no Commission-regulated water or wastewater utility has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, current subsection (8) does not address
customers who pay flat or minimum tariff rates that do not include a specific
base facility charge. For these reasons, subsection (8) is deleted and replaced
by the language in draft subsection (4).
Draft subsection (4)
requires customers who request temporary discontinuance of service or are out
of residence to pay either the base facility charge or 40 percent of the flat
rate or rates that include minimum usage, whatever is the utility’s approved
tariff rate. 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 and is the equivalent of a base facility
charge.
Subsection (5): Permanent Termination of Service
As stated in the Case Background, this item was deferred
from the July 7, 2020 Commission Conference to allow staff time to explore
questions raised by the Commission concerning draft subsection (5). As part of
this effort, staff requested comments from water and wastewater utilities on
the draft rule amendments. As a result of its review, staff made one revision
to subsection (5) concerning requests for permanent termination of service,
changing a six month time period to twelve months.
Draft subsection (5) presented at the July 7, 2020
Commission Conference provided that if a customer requests a permanent termination
of service and subsequently requests service at the same location within six
months of termination, the utility must bill and the customer is responsible
for paying all outstanding rates and charges for that termination period. In
response to staff’s request for comments that was submitted to utilities
subsequent to the July 7, 2020 Commission Conference, Investor Owned Utilities
stated that the standard industry-wide practice for water and wastewater
utilities throughout Florida has been to require customers to pay base facility
charges for customers who are out of residence with discontinued service for 12
months or less. As an example, they provided an Aqua Utilities tariff sheet (no
longer in effect) that had included that requirement.
Investor Owned Utilities stated that to shorten the
12-month period to six months would be burdensome and could result in lost
revenues which would be borne by the remaining general body of ratepayers and
would be discriminatory toward full-time customers who do not leave the state
for part of the year.
Florida Utility Services 1, LLC, stated that it has not
had an issue with seasonal customers not paying base facility charges once it
is explained to them that there are no “vacation rates” in Florida. It did request that the rule provide that if
a customer requests a permanent termination of service and subsequently
requests service at the same location, the base facility charges apply if the
subsequent service is requested within 12 months of termination, instead of six
months, noting that some customers come to Florida for only two or three months
a year.
Pluris Wedgefield and UIF stated
that for the rule to codify existing policy, it should provide that if someone
moved back to the same residence within 12
months, they would have to pay the intervening months’ base facility charge.
They noted that a six-month time frame allows Canadian customers who can only reside
in Florida for six months to stay away an extra day and avoid the base facility
charges. It is their opinion that whether or not the intent of the rule is
to codify existing policy, the time should be changed to 12 months.
Based on industry responses, staff believes that draft
subsection (5) should provide that if a customer requests a permanent
termination of service and subsequently requests service at the same location
within 12 months of termination, the utility must bill and the customer is
responsible for paying all outstanding rates and charges for that termination
period.
Customer Responsibility for Paying Rates and
Charges Prior to Reconnection
As stated above, draft subsection (5) states that if a
customer requests permanent termination of service but requests reconnection
within 12 months, the customer is responsible for paying all outstanding rates
and charges for the service termination period in order for service to be
restored. The term “customer” as used in this rule is defined in Rule
25-30.210(1), F.A.C., to mean any person, firm, association, corporation,
governmental agency, or similar organization who has an agreement to receive
service from the utility.
There was a question raised at the July 7, 2020 Commission
Conference about whether there is a problem that the rule should address with
people representing they are permanently terminating service while they are
actually intending to be out-of-residence temporarily, and then subsequently
asking for service under a different family member’s name in order to avoid
paying the monthly base facility charges. Staff looked into this question, and
it appears that at this time utilities are not experiencing problems of this
nature. Thus, rulemaking to address this issue is not necessary at this time. However, if at any time in the future it does
appear that utilities are experiencing issues in this regard, staff can explore
this issue in a future rulemaking.
Military Service Members
At the July 7, 2020 Commission Conference, staff was asked
to explore whether other states have provisions for waiver or abatement of
water and wastewater charges and fees for deployed military Service Members.
Staff was unable to find any utility regulations in other states that
specifically address exemptions from paying water rates or charges for deployed
service members. However, the state of New Mexico enacted a statute in 2013
that provides that upon return from deployment or temporary duty assignment, a
resident who is a member of a branch of the U.S. armed forces, the reserves, or
the New Mexico National Guard shall be allowed to reconnect suspended public
utilities services without having to pay a reconnection fee. Florida does not have a similar statute that
would give the Commission authority to exempt deployed military Service Members
from paying base facility or reconnection charges as required by Rule
25-30.335, F.A.C.
Staff notes that there are federally sponsored programs
that give military Service Members
assistance with paying utility bills. The U.S. Department of Labor
sponsors a veteran and military transition center that offers federal
assistance from the Low Income Home Energy Assistance Program, a federally
funded program that helps low-income households with their home energy bills. In
addition, Army Emergency Relief is a nonprofit organization that helps soldiers
and their family members who experience financial emergencies, including paying
utilities.
Notice to Customers
of Rule Amendment
At the July 7, 2020 Commission Conference, staff was asked
to consider the issue of customers having notice of the draft changes to
subsection (5). Draft subsection (5), as explained above, requires customers to
be responsible for paying the monthly base facility charge if they request a
permanent termination of service but subsequently request service at the same
location within 12 months.
Staff considered various ways in which water and
wastewater utilities could provide notice of this rule requirement to
customers. The main concern was how small Class C utilities could provide such
notice. Staff considered utilities providing notice to individual customers who
were requesting temporary or permanent disconnection of service; requiring
utilities to send out an annual notice to all customers; or requiring utilities
to give notice on the utilities’ website.
Staff received comments from Class C utilities raising concerns with all
these approaches.
Although Investor Owned Utilities was not opposed to
providing customer notice, it stated that several of its member utilities are
very seasonal and may have up to 60 percent of their customers return to their
northern residences, which would make notifying individual customers who
request temporary discontinuance or permanent termination of service onerous. Investor
Owned Utilities suggested annual notification through bill inserts,
notification on the utility’s website, or messages periodically placed on
customers’ bills as possible alternatives.
Pluris Wedgefield and UIF had concerns with requiring
small utilities to give an annual notice, noting that most do not have websites
and the customer base of many of these small utilities do not have a seasonal
winter population to which the rule amendments are directed. They suggested
that perhaps a one-time notification when the amended rule becomes effective
would be sufficient. However, they
requested that no noticing be required, noting that there are many tariff rules
that are applicable and of interest to customers that rightfully have no annual
noticing requirement. Florida Utility Services 1, LLC also requested that no
noticing requirement be added to this rule.
After considering utility comments concerning adding a
noticing requirement to this rule, staff concludes that the burden and cost to
utilities outweighs any benefits to customers. Staff agrees that not all
utilities have a seasonal customer base and not all utilities have the means to
provide the notification in a less costly manner, such as displaying on a
website. Sending a utility-wide notice that does not impact the entire customer
base is not cost effective. In addition, staff agrees with utility comments
that there are rules that are applicable and of interest to customers that do
not have noticing requirements. Pursuant to Rule 25-30.325, F.A.C, a utility
may require a customer to give reasonable notice of his or her intention to
discontinue service. Staff believes if and when a customer requests temporary
discontinuance or permanent termination of service, the onus is on the utility
to communicate, at that time, the requirements of the rule. This would alleviate any undue cost burden of
noticing to the general body of ratepayers.
Landlord/Tenant Delinquent and Inactive Accounts
During the course of finalizing the draft rule, staff
requested additional comments from the participating water and wastewater
utilities and OPC. In its October 9, 2020 comments, Investor Owned Utilities
for the first time suggested additional amendments to the Customer Billing Rule
to address certain issues pertaining to landlord/tenants and vacant inactive
accounts. They suggested rule amendments that would:
1.
Prohibit a new account to be opened in a new property
owner’s name until the delinquent amount is paid;
2.
Hold the property owner (landlord) accountable for its
tenants’ unpaid balance;
3.
Revert the account back to the property owner after any
tenant leaves the premise; and
4.
Charge the base facility charge to all inactive
accounts where water/wastewater service is available.
Staff has considered these comments. The landlord/tenant
and inactive account issues raised by Investor Owned Utilities appear to be
beyond the scope of this rule. Section 120.54(1)(g), F.S., requires each rule
to contain only one subject. It is possible that some or all of these issues
could impact Rule 25-30.320, F.A.C., Refusal or Discontinuance of Service.
These issues appear to include some complex policy considerations that could be
of great interest to a number of persons not participating in this docket.
Staff believes it is the better course to finalize the draft customer billing
rule so that issues concerning temporary and permanent discontinuance of
service billing may be updated and clarified for utilities and customers. For these reasons, staff does not recommend
addressing the landlord/tenant and vacant inactive accounts issues raised by
Investor Owned Utilities in this rulemaking.
However, staff will continue to assess these issues and determine
whether rulemaking may be appropriate in the future.
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. Following the July 7, 2020
Commission Conference, receipt of responses to staff’s information request, and
revision of the draft rule, staff prepared a new SERC. 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 Joint
Administrative Procedure Committee 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 12 months of that 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 in order for service to be restored.
(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, ____________.
