Case Background
On November 18,
2022, C.F.A.T. H2O, Inc. (CFAT or Utility) filed an application with the
Florida Public Service Commission (Commission) for a quick-take amendment to
Certificate No. 481-S to add wastewater territory in Marion County. During
staff’s review of the application, staff discovered that: (1) the Utility would
need to delete some territory as well as add territory, disqualifying it from
the quick-take amendment process; and (2) the amendments affected both the
water and wastewater certificates. Accordingly, the docket title was changed to
reflect the addition of the water certificate and the change from a quick-take
amendment to a regular amendment. In addition, CFAT remitted the additional
filing fee and additional documentation required.
The territory
currently served by the CFAT water and wastewater systems (the CFAT territory) was
originally added to the territory served by Tradewinds Utilities, Inc.
(Tradewinds) through an amendment to Tradewinds’ water and wastewater
certificates in 1988. The CFAT territory was some distance away
from the Tradewinds service territory, and was served by a separate water and
wastewater system. Due to a foreclosure on the bank that held the title to the
utility assets serving the CFAT territory, the Resolution Trust Corporation
(RTC) was appointed its receiver in 1991. Subsequently, the Commission granted
a joint application by RTC and Tradewinds to delete the CFAT territory from
Tradewinds’ certificated service territory and to grant RTC water and
wastewater Certificate Nos. 552-W and 481-S. On November 8, 1993, CFAT filed an
application for transfer of Certificate Nos. 552-W and 481-S from RTC to CFAT. Since that time, CFAT has undergone one
transfer of majority organizational control.
When the CFAT
territory was originally added to Tradewinds’ certificated service territory in
1988, the portion of the territory in Section 16, Township 14 South, Range 22
East, Marion County, was erroneously described as being in the East half of the
Northeast quarter of Section 16. However, the customers being served by
the CFAT system were located in the East half of the Northwest quarter
of Section 16. This appears to have been an error that has carried forward in
subsequent iterations of CFAT’s certificated area. The error was discovered
during the processing of the application to transfer CFAT to CSWR-Florida
Utility Operating Company, LLC (CSWR) in Docket No. 20220062-WS. To ensure that
the service territory being conveyed in the sale and noticed pursuant to Rule
25-30.030, F.A.C., was accurate, the amendment sought in the instant docket should
be addressed before the transfer request in Docket No. 20220062-WS is granted. Therefore,
CFAT is requesting that the currently certificated area in Section 16 be
deleted and the territory pertaining to Section 16 be added.
This
recommendation addresses the Utility’s request to extend its water and
wastewater service territory and to delete a portion of 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 C.F.A.T. H2O, Inc.’s
application for amendment of Certificate Nos. 552-W and 481-S to add and delete
territory from its certificated water and wastewater service territory in
Marion County?
Recommendation:
Yes. The Commission should amend Certificate Nos.
552-W and 481-S to include the territory as described in Attachment A,
effective the date of the Commission’s vote. The resultant order should serve
as CFAT’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, Bruce)
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, Florida Administrative Code (F.A.C.). The application
contains proof of compliance with the noticing provisions set forth in Rule
25-30.030, F.A.C. On April 14, 2023, Marion County Utilities (County) timely
filed an objection to the application and requested a hearing. Staff contacted
the County to clarify its specific objections, as well as to describe for the
County the Commission’s hearing process. CFAT contacted the County as well for
clarification of the County’s concerns. After reviewing the information
received during these discussions, on June 8, 2023, the County withdrew its
objection to the territory amendment.
CFAT provided adequate service territory maps and
territory descriptions to the Commission. A description of the territory
requested to be deleted and added by the Utility, as well as the resulting
service territory description, is appended to this recommendation as Attachment
A. The Utility submitted an affidavit with its November 18, 2022, application
consistent with Rule 25-30.036(2)(q), F.A.C., stating that it has tariffs and
annual reports on file with the Commission.
Pursuant to the transfer from The Resolution Trust
Corporation to the Utility, the Commission established rate base for transfer
purposes and set rates and charges on June 8, 1994.[6]
As explained in the Case Background, the owner of both CFAT and Tradewinds has
been serving the customers included in the request for extension of service
territory in the instant docket since 1988, when the CFAT territory was added
to Tradewinds. Therefore, no additional facilities will be needed to serve
these customers. Given the long history of service to these customers, staff
believes CFAT’s financial ability to serve the proposed territory to be
adequate.
There are currently no outstanding Consent Orders or
Notices of Violation from the Florida Department of Environmental Protection.
The Utility has filed its 2022 Annual Report and has paid its 2022 Regulatory
Assessment Fees. Based on the foregoing analysis, staff recommends that CFAT
has the financial and technical ability to serve the amended territory.
Conclusion
Based on the information above, staff recommends that the
Commission should amend Certificate Nos. 552-W and 481-S to include the
territory as described in Attachment A, effective the date of the Commission’s
vote. The resultant order should serve as CFAT’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. (Thompson)
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.
C.F.A.T. H2O,
Inc.
MARION
COUNTY
Legal
Description of the Extension Territory
A parcel of land being part of the NE 1/4 of NW 1/4
and the SE 1/4 of NW 1/4 of Section 21, Township 14 South, Range 22 East,
Marion County, Florida and being more particularly described as follows:
Beginning at the NE corner of the NW 1/4 of said
Section 21, thence run South 00°12’41” West along the east line of the West 1/2
of said Section 21 for 2555.69 feet to the northern right-of-way of NW 70th
Street; thence run North 89°36’04” West for 674.92 feet to the western
right-of-way of Jacksonville Road; thence run North 13°51’04” East along said
right-of-way for 611.53 feet; thence run North 76°23’09” West for 450.97 feet;
thence run North 13°36’58” East for 899.69 feet; thence run South 76°33’41”
East for 453.52 feet back to said western right-of-way of Jacksonville Road;
thence run North 13°46’51” East along said right-of-way for 1114.14 feet to the
north line of said NE 1/4 of NW 1/4 of Section 21; thence run East along the
north line of said Section 21 for 57.94 feet back to the Point of Beginning.
Containing 30.8 acres, more or less.
Legal
Description of the Territory Deleted
All of the East 1/2 of the NE 1/4 of Section 21,
Township 14 South, Range 22 East, Marion County, Florida. Containing 80 acres,
more or less.
C.F.A.T.
H2O, Inc.
MARION
COUNTY
WATER AND
WASTEWATER SERVICE TERRITORY
A parcel of land being part of the SE 1/4 of SE 1/4,
the SW 1/4 of SE 1/4, and the NE 1/4 of SE 1/4 of Section 16; and the NE 1/4 of
NW 1/4 and the SE 1/4 of NW 1/4 of Section 21, all in Township 14 South, Range
22 East, Marion County, Florida and being more particularly described as
follows:
Beginning at the SE corner of said Section 16, thence
run West along the south line of said Section 16 for 2640.00 feet to the NE
corner of the NE 1/4 of NW 1/4 of Section 21; thence run South 00°12’41” West
along the east line of the W ½ of said Section 21 for 2555.69 feet to the
northern right-of-way of NW 70th Street; thence run North 89°36’04” West for 674.92
feet to the western right-of-way of Jacksonville Road; thence run North
13°51’04” East along said right-of-way for 611.53 feet; thence run North
76°23’09” West for 450.97 feet; thence run North 13°36’58” East for 899.69
feet; thence run South 76°33’41” East for 453.52 feet back to said western
right-of-way of Jacksonville Road; thence run North 13°46’51” East along said
right-of-way for 1114.14 feet to the north line of said NE 1/4 of NW 1/4 of
Section 21; thence run East along the north line of said Section 21 for 57.94
feet to the SW corner of the SW 1/4 of SE 1/4 of Section 16; thence run North
along the west line of said SW 1/4 of SE 1/4 for 849.32 feet; thence run East
for 1320.00 feet; thence run North for 671.05 feet; thence run East for 1320.00
feet to the east line of Section 16; thence run South along the east line of
said Section 16 for 1520.37 feet back to the Point of Beginning. Containing
102.6 acres, more or less.
FLORIDA PUBLIC SERVICE COMMISSION
authorizes
C.F.A.T. H2O, Inc.
pursuant to
Certificate Number 552-W
to provide water service in Marion
County in accordance with the provisions of Chapter 367, Florida Statutes,
and the Rules, Regulations, and Orders of this Commission in the territory
described by the Orders of this Commission.
This authorization shall remain in force and effect until superseded,
suspended, cancelled or revoked by Order of this Commission.
Order Number Date
Issued Docket Number Filing Type
PSC-93-0368-FOF-WS 03/09/93 19921260-WS Transfer
PSC-94-0701-FOF-WS 06/08/94 19931080-WS Transfer
PSC-06-0593-FOF-WS 07/07/06 20060028-WS TMOC
PSC-97-0206A-FOF-WS 03/05/97 19960095-WS Amendatory Order
* * 20220203-WS Amendment
*Order Number and
date to be provided at time of issuance
FLORIDA PUBLIC SERVICE COMMISSION
authorizes
C.F.A.T. H2O, Inc.
pursuant to
Certificate Number 481-S
to provide wastewater service in Marion
County in accordance with the provisions of Chapter 367, Florida Statutes,
and the Rules, Regulations, and Orders of this Commission in the territory
described by the Orders of this Commission. This authorization shall remain in
force and effect until superseded, suspended, cancelled or revoked by Order of
this Commission.
Order Number Date
Issued Docket Number Filing Type
PSC-93-0368-FOF-WS 03/09/93 19921260-WS Transfer
PSC-94-0701-FOF-WS 06/08/94 19931080-WS Transfer
PSC-06-0593-FOF-WS 07/07/06 20060028-WS TMOC
PSC-97-0206A-FOF-WS 03/05/97 19960095-WS Amendatory Order
* * 20220203-WS Amendment
*Order Number and date to be provided at
time of issuance
