Case Background
Lake Talquin Waterworks (Lake Talquin or
utility) is a class C utility providing water service to approximately 237
residential customers, in single family and mobile homes, located next to Lake
Talquin in southwest Leon County. Wastewater service is provided by septic
tank. The Utility’s service area is located in the Northwest Florida Water
Management District. According to Lake Talquin’s 2021 Annual Report, total
gross water revenue was $136,342 and total water operating expense was
$107,669. Lake Talquin was granted its grandfather water certificate in 2021
and the Commission at the time approved the utility’s existing rates and
charges.
On June 9, 2022,
Lake Talquin filed a request to add additional base facility charges (BFC) to
its tariff for larger meter sizes for the residential and general service
classes. Currently, the utility only has Commission-approved residential and
general service BFCs for the 5/8” x 3/4” meter size. This recommendation
addresses the utility’s request to add the additional BFCs for larger meter
sizes to its tariff. The Commission has
jurisdiction pursuant to Section 367.091(4), Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the utility’s proposed tariffs containing the
BFCs for additional meter sizes for the residential and general service classes
be approved?
Recommendation:
Yes, the utility’s proposed tariffs containing the
BFCs for additional meter sizes for the residential and general service classes
should be approved. The utility should file a proposed customer notice to
reflect the Commission-approved rates. Lake Talquin’s Second Revised Sheet No.
12.0 and Second Revised Sheet No. 13.0 should be approved as filed. The approved rates should be effective for
service rendered on or after the stamped approval date of the tariffs pursuant
to Rule 25-30.475(1), Florida Administrative Code (F.A.C.), provided that the
notice of the tariff has been received by the two general service customers
impacted. The utility should provide proof of the date notice was given within
10 days of the date of the notice. (Hudson)
Staff Analysis:
The
utility explained that it has two general service customers with larger meter
sizes of 1-inch and 1-1/2 inch. Currently, Lake Talquin’s tariff only has a BFC
for a 5/8 inch x 3/4 inch meter size. The utility’s proposed BFCs for the
additional meter sizes are calculated by using the utility’s existing BFC of
$36.60 for the 5/8 inch x 3/4 inch size meter as a foundation, and then
applying the American Water Works Association’s (AWWA’s) meter equivalent
factor. The AWWA meter equivalent factors are contained in Rule 25-30.055,
F.A.C. Lake Talquin’s existing BFC for the 5/8 inch x 3/4 inch meter size and
the BFCs for the proposed additional meters based on the AWWA meter equivalents
are shown in Table 1-1.
Table 1-1
Utility’s Existing and Proposed BFC
Charges
|
Meter Size
|
AWWA Meter
Factor
|
BFC
|
|
5/8" X 3/4"
|
1
|
$36.60
|
|
3/4"
|
1.5
|
$54.90
|
|
1"
|
2.5
|
$91.50
|
|
1-1/2"
|
5
|
$183.00
|
|
2"
|
8
|
$292.80
|
|
3"
|
16
|
$585.60
|
|
4"
|
25
|
$915.00
|
Source: Utility’s filing.
The utility has been charging the
general service customers the only BFC it currently has in place. The gallonage
charge is $3.23 per 1,000 gallons for all meter sizes. The utility will charge
the two general service customers the appropriate BFC based on the customers’
meter size once authorized by the Commission.
Conclusion
The utility’s proposed tariffs containing the BFCs for
additional meter sizes for the residential and general service classes should
be approved. The utility should file a proposed customer notice to reflect the
Commission-approved rates. Lake Talquin’s Second Revised Sheet No. 12.0 and
Second Revised Sheet No. 13.0 should be approved as filed. The approved rates should be effective for
service rendered on or after the stamped approval date of the tariffs pursuant
to Rule 25-30.475(1), F.A.C., provided that the notice of the tariff has been
received by the two general service customers impacted. The utility should
provide proof of the date notice was given within 10 days of the date of the
notice.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If Issue 1 is approved, the tariff sheets
should become effective on or after the stamped approval date on the tariff
sheets pursuant to Rule 25-30.475, F.A.C. If a protest is filed within 21 days
of the issuance of the Order, the tariff should remain in effect with the
revenues held subject to refund pending resolution of the protest, and the
docket should remain open. If no timely protest is filed, the docket should be
closed upon the issuance of a Consummating Order. (Crawford)
Staff Analysis:
If Issue 1 is approved, the tariff sheets should
become effective on or after the stamped approval date on the tariff sheets
pursuant to Rule 25-30.475, F.A.C. If a protest is filed within 21 days of the
issuance date of the Order, the tariff should remain in effect with revenues
subject to refund pending resolution of the protest, and the docket should
remain open. If no timely protest is
filed, the docket should be closed upon the issuance of a Consummating Order.
