Case Background
On June 2, 2021,
Utilities, Inc. of Florida filed an application with the Florida Public Service
Commission (Commission) to amend Certificate Nos. 496-W and 465-S, to add territory
in Lake County, and petition for partial variance or waiver of Rule
25-30.030(5)(b), Florida Administrative Code (F.A.C.). Certificate No. 496-W
was initially granted to Lake Utility Services, Inc. (LUSI) in 1987, and was subsequently amended four times to
add territory in 1990, 1991, and 1992. Certificate No. 465-S was initially
granted to Lake Groves Utilities, Inc. (Lake Groves) in 1990, and was subsequently amended four times to
add territory in 1992, 1993, 1999, and 2000.
In 2002, LUSI
and Lake Groves were merged. Certificate No. 496-W was amended to
include Lake Groves’ water service territory, and Lake Groves’ water
certificate was cancelled. Certificate No. 465-S was amended to reflect the
merger of Lake Groves into LUSI. Following the merger, Certificate Nos. 496-W
and 465-S were amended three times to add territory, as well as to transfer assets from an
exempt entity and amend Certificate No. 465-S to add the affected territory. In 2015, the Commission approved the
corporate reorganization of several utilities, including LUSI, and the
utilities’ certified names were changed to Utilities, Inc. of Florida (UIF or
Utility).
UIF currently
serves the Orlando Recreational Vehicle (RV) Resort Thousand Trails, consisting
of 846 RV lots and ancillary buildings. The proposed service area is adjacent
to UIF’s current service territory and will include 92 RV lots that will be
added as a second phase of the Orlando RV Resort Thousand Trails.
This
recommendation addresses the Utility’s request to extend its water and
wastewater service territory. The Commission has jurisdiction pursuant to
Section 367.045, Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve UIF’s application for
amendment of Certificate Nos. 496-W and 465-S to extend its water and wastewater
territory in Lake County?
Recommendation:
Yes. The Commission should amend Certificate
Nos. 496-W and 465-S to include the territory as described in Attachment A,
effective the date of the Commission’s vote. The resultant order should serve as
UIF’s amended certificate and should be retained by the Utility. The Utility
should charge future customers in the territory added herein the rates and
charges contained in its current tariffs until a change is authorized by the
Commission in a subsequent proceeding. (M. Watts, Knoblauch, Bethea)
Staff Analysis:
The
Utility’s application to amend its authorized service territory is in
compliance with the governing statute, Section 367.045, F.S., and Rule
25-30.036, F.A.C. UIF provided notice of the application pursuant to Section
367.071, F.S. and Rule 25-30.030(5)(b), F.A.C., however Rule 25-30.030(5)(b),
F.A.C., was partially waived by the Commission regarding the requirement that
the notice be provided to all customers and property owners within its existing
service area.[14] In lieu
of noticing all of its customers by mail, UIF was ordered to place a
staff-approved notice of its application on its website for 30 days, which UIF
has satisfied. This notice also provided
30 days for customers to file an objection to the transfer. No
objections to the application have been received and the time for filing such
has expired.
UIF provided
sufficient service territory maps and territory descriptions to the Commission.
According to the application, the provision of water and wastewater services in
the proposed service territory is consistent with the Lake County Comprehensive
Plan.
The Utility
was granted a rate increase in 2021.[15]
At that time, the Commission found the overall quality of service of the
Utility to be satisfactory, and there currently appears to be no outstanding
Consent Orders or Notices of Violation from the Department of Environmental
Protection. The Utility has filed its 2020 Annual Report and is current with
the payment of its 2020 and 2021 Regulatory Assessment Fees.
The Utility
stated in its application that the proposed service territory will be served by
its existing 6.00 million gallon per day (MGD) water treatment plant (WTP) and
its 0.99 MGD wastewater treatment plant (WWTP). UIF stated that the capacity of
both its existing WTP and WWTP are sufficient to serve both its existing and
proposed service territories.
UIF stated in its application that the water and
wastewater service to the proposed service territory will be master metered, and
that the owner of the RV lots will pay for the construction of the
interconnection and donate them to UIF. As such, it anticipates that there will
be no material impact on the Utility’s capital structure. Additionally, since
UIF has more than 60,000 customers, the addition of 92 RV lots will have an
immaterial impact on its monthly rates or service availability charges. Based
on the foregoing analysis, staff recommends that UIF has the technical and financial
ability to service the amended territory.
Conclusion
Based on the information above,
staff recommends that the Commission should amend Certificate Nos. 496-W and 465-S
to include the territory as described in Attachment A, effective the date of
the Commission’s vote. The resultant order should serve as UIF’s amended
certificate and should be retained by the Utility. The Utility should charge
future customers in the territory added herein the rates and charges contained
in its current tariffs until a change is authorized by the Commission in a
subsequent proceeding.
Issue 2:
Should this docket be closed?
Recommendation:
If the Commission approves staff’s recommendation,
no further action will be necessary, and this docket should be closed upon
issuance of the order. (Trierweiler)
Staff Analysis:
If the Commission approves staff’s recommendation,
no further action will be necessary, and this docket should be closed upon
issuance of the order.
