Discussion
of Issues
Issue 1:
Should the Commission propose amendments to Rule
25-30.460, F.A.C., Application for Miscellaneous Service Charges?
Recommendation:
Yes, the Commission should propose amendments to
Rule 25-30.460, F.A.C., as set forth in Attachment A. The Commission should
certify Rule 25-30.460, F.A.C., as a minor violation rule. (DuVal, Bethea,
Sibley, Guffey, Hudson)
Staff Analysis:
Staff recommends several amendments to Rule
25-30.460, F.A.C., as set forth in Attachment A. These recommended amendments
will add clarity and specificity to the rule language. Additionally, they will
update the rule to define the various miscellaneous service charges for which
water and wastewater utilities may request the Commission’s approval. The draft
amendments to Rule 25-30.460, F.A.C., are discussed below.
Subsection (1): Utilities’ Assessment of
Miscellaneous Service Charges
Subsection (1) of the rule addresses the water and
wastewater utilities’ ability to request Commission approval of miscellaneous
service charges and sets forth parameters by which such charges may be levied.
The draft amendments to subsection (1) clarify that
utilities providing both water and wastewater services should assess only one
instance of a miscellaneous service charge for a single event. When
miscellaneous service charges are designed, they are for the utility as a
whole. The miscellaneous service charges appear in both the water and
wastewater tariffs. However, for utilities that offer both water and wastewater
services, miscellaneous service charges are not intended to be individual
system charges. The Commission-approved tariffs for miscellaneous service
charges currently contain language addressing the applicability of the charges;
explaining that only one instance of a charge is appropriate for a single event
when the utility provides both water and wastewater services. This recommended
amendment clarifies the rule language and adds consistency to utilities’
interpretation and application of the rule language.
The draft amendments to subsection (1) also remove
references to current miscellaneous service charges categories, as these are
revised with updated definitions in staff’s draft amendments to subsection (2).
Subsection (2): Definitions of Miscellaneous
Service Charges
Staff is recommending a new subsection (2) to the rule.
Draft subsection (2) updates the definitions of current miscellaneous service
charges to reflect the evolution of certain charges, to correct any lack of
consistency regarding costs and services included within the current charges,
and to resolve any ambiguity in the existing definitions. Draft subsection (2)
also includes additional miscellaneous service charges that the Commission
considers for approval.
Draft paragraphs (2)(a) and (b) provide updated
definitions for premises visit and violation reconnection charges to resolve
any inconsistency or ambiguity between the existing definitions of initial
connections, normal reconnections, violation reconnections, and premises visit
charges. Staff removed the definitions for initial connection charges and
normal reconnection charges because those services are reflected in the draft
definition of the premises visit charge.
Draft paragraph (2)(c) defines a convenience charge as a
charge that is levied when a customer pays a utility bill with a debit or
credit card. Draft paragraph (2)(d) defines an investigation of meter tampering
charge as a charge that is levied when an investigation reveals unauthorized
connection to, or tampering with, a utility’s meter or equipment, pursuant to
paragraph 25-30.320(2)(j), F.A.C. Draft paragraph (2)(e) defines a late payment
charge as a charge that is levied when a customer is delinquent in paying a
bill for service, pursuant to subsection 25-30.335(4), F.A.C. Draft paragraph
(2)(f) defines a non-sufficient funds charge as a charge that is levied when a
customer’s payment is refused by the drawee because of lack of funds, credit,
or an account, pursuant to Section 68.065, F.S.
Subsection (3): After Hours Charges
Draft subsection (3) is new to the rule and replaces the
language of current subsection (2) that addresses after hours charges. Staff’s
draft subsection (3) language simplifies the definition of the after hours
charge and removes any ambiguity in the existing definition.
Minor Violation Rules Certification
Pursuant to Section 120.695, F.S., for each rule filed for
adoption, the agency head must certify whether any part of the rule is
designated as a rule the violation of which would be a minor violation. Rule
25-30.460, 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 Rule 25-30.460, F.A.C., would not change
its status as a minor violation rule. Thus, staff recommends that the
Commission certify Rule 25-30.460, 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 amendments 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 amendments 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 rules do not require legislative ratification
pursuant to Section 120.541(3), F.S.
In addition, the SERC states that the rule amendments will
not have an adverse impact on small business and will have no impact on small
cities or counties. The SERC also concludes that the recommended amendments
will not result in increased transactional costs to utilities required to
comply with the rule, and, instead, will result in cost reductions and
administrative efficiencies. No regulatory alternatives were submitted pursuant
to Section 120.541(1)(a), F.S. None of the impact/cost criteria established in
Section 120.541(2)(a), F.S., will be exceeded as a result of the recommended
amendments to Rule 25-30.460, F.A.C.
Conclusion
Staff recommends that the Commission propose the amendment
of Rule 25-30.460, F.A.C., as set forth in Attachment A. Staff further
recommends that the Commission should certify Rule 25-30.460, F.A.C., as a
minor violation rule.
Staff notes that if and when the rule amendments go into
effect, there will not be an immediate impact on or change to water and wastewater
utilities’ existing tariffs. The existing tariffs will remain in effect, and
the tariffs would be reviewed on a prospective basis to ensure conformance with
the amended rule. Staff envisions that this tariff review would be conducted
when a company applies for a new miscellaneous service charge under the amended
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 Procedures Committee (JAPC) comments are filed, the rule should
be filed with the Department of State, and the docket should be closed. (DuVal)
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 should be filed with the Department of State, and the
docket should be closed.
25-30.460 Application for Miscellaneous
Service Charges.
(1)
All water and wastewater utilities may apply for miscellaneous service charges.
and tThese charges shall be included in each company’s tariff.
If a utility provides both water and wastewater services, only a single charge
shall be assessed for each of the miscellaneous service charges identified in
subsection (2). and include rates for initial connections, normal
reconnections, violation reconnections, and premises visit charges.
(2)
The following identifies and defines miscellaneous service charges:
(a)
A premises visit charge is levied when a service representative visits a premises
to discontinue service for nonpayment of a due and collectible bill and the
customer pays the service representative or otherwise makes satisfactory
arrangements to pay the bill and service is not discontinued. A premises visit
charge is also levied when a service representative visits a premises at the
customer’s request to (1) initiate service, (2) temporarily disconnect service,
(3) reconnect service after a temporary discontinuance, or (4) assess a service
issue and it is found to be the customer’s responsibility. Initial
connection charges are levied for service initiation at a location where
service did not exist previously.
(b)
Normal reconnection charges are levied for transfer of service to a new
customer account at a previously served location, or reconnection of service
subsequent to a customer requested disconnection.
(b)(c)
A vViolation reconnection is a charge that is
levied prior to reconnection of an existing customer after discontinuance of
service for cause according to subsection 25-30.320(2), F.A.C., including a
delinquency in bill payment. Violation reconnection charges are at the
tariffed rate for discontinuation of water service and actual
cost for discontinuation of wastewater service.
(c)(d)
A convenience charge is levied when a utility bill is paid by debit or
credit card. Premises Visit Charge is levied when a service
representative visits a premises at the customer’s request for complaint
resolution and the problem is found to be the customer’s responsibility.
(d)(e)
An investigation of meter tampering charge is levied when an investigation
reveals evidence of unauthorized connection to, or tampering with, the
utility’s meter or equipment, pursuant to paragraph 25-30.320(2)(j), F.A.C.
Premises Visit Charge (in lieu of disconnection) is levied when a service
representative visits a premises for the purpose of discontinuing service for
nonpayment of a due and collectible bill and does not discontinue service
because the customer pays the service representative or otherwise makes
satisfactory arrangements to pay the bill.
(e)
A late payment charge is levied when a customer is delinquent in paying a bill
for service, pursuant to subsection 25-30.335(4), F.A.C.
(f)
A non-sufficient funds charge is levied when a customer’s payment is refused by
the drawee because of lack of funds, lack of credit, or lack of an account,
pursuant to Section 68.065, F.S.
(2)
A utility may request an additional charge (“after hours charge”) for overtime
when the customer requests that the service be performed after normal hours.
The after hours charge may be at the same rate specified for the existing
charge during normal working hours. If the utility seeks a charge other than
the normal working hours charge, the utility must file cost support.
(3)
A utility may apply for after hours charges for a premises visit charge or
violation reconnection charge to account for the overtime when the customer
requests that the service be performed after normal business hours.
Rulemaking
Authority 350.127(2), 367.121 FS. Law Implemented 367.081, 367.121, 367.091
FS. History–New 11-30-93, Amended .
