Discussion
of Issues
Issue 1:
Should Tarawood Utilities, LLC’s application for
grandfather water and wastewater certificates in Citrus County be acknowledged?
Recommendation:
Yes. Tarawood’s application should be approved and
the Utility should be issued Certificate Nos. 685-W and 584-S, effective May
28, 2024, to serve the territory described in Attachment A. The resultant order
should serve as Tarawood’s certificate and should be retained by the Utility. (Ramirez-Abundez,
Bardin)
Staff Analysis:
The Utility’s application
for certificate under grandfather rights to provide water and wastewater
service in Citrus County is in compliance with Section 367.171(2)(b), F.S., and
Rule 25-30.035, F.A.C. An adequate service territory description and system
maps were provided. As the Utility has its own treatment facilities, the
application contains a warranty deed as proof of ownership of the land on which
the Utility’s facilities are located as required by Rule 25-30.035(11), F.A.C.
A description of the Utility’s territory is described in Attachment A.
As stated in the case background, Tarawood has been in
existence since 2008 and currently serves 90 residential and 1 general service
customer. The Utility does not currently have any outstanding
citations, violations, or consent orders on file with the Florida Department of
Environmental Protection.
The Utility is aware of its obligation
to submit its 2024 Annual Report pursuant to Rule 25-30.110, F.A.C., and is
also aware of its obligation to pay regulatory assessment fees pursuant to Rule
25-30.120, F.A.C. In addition, the Utility is aware that it must maintain its
books and records according to the National Association of Regulatory Utility
Commissioners’ Uniform System of Accounts.
Based on the above, staff recommends that Tarawood be
granted Certificate Nos. 685-W and 584-S to serve the territory described in
Attachment A. The resultant order should serve as Tarawood’s certificate and
should be retained by the Utility.
Issue 2:
What rates, charges, and deposits should be approved
for Tarawood Utilities, LLC?
Recommendation:
Of the Utility’s rates, charges, and deposits for
water and wastewater service that were in effect when Citrus County transferred
jurisdiction to the Commission, only the rates, charges, and initial customer
deposits shown in Schedule Nos. 1 and 2, are appropriate and should be
approved. The rates, charges, and initial customer deposits shown in Schedule
Nos. 1 and 2 should be effective for services rendered or connections made on
or after the stamped approval date on the tariff sheets. The Utility should be
required to charge the approved rates, charges, and initial customer deposit
shown in Schedule Nos. 1 and 2 until authorized to change them by the Commission
in a subsequent proceeding. (Chambliss)
Staff Analysis:
Citrus County Water and
Wastewater Authority approved the Utility’s current monthly water and
wastewater rates by Final Order No. 24-03 on February 29, 2024. The monthly
water rates consist of a base facility charge (BFC) and gallonage charge per
1,000 gallons. The wastewater rates consist of a BFC for all meter sizes and a
gallonage charge with a 6,000 gallonage cap. The Utility’s current bulk rate
was approved by Final Order 18-05 on November 20, 2018. The bulk rate includes
a gallonage charge per 1,000 gallons.
The Utility’s water and
wastewater charges consist of miscellaneous service charges and service
availability charges, which include a service availability policy. The
Utility’s current water service availability charges were approved by Final
Order No. 23-05. The miscellaneous service charges and wastewater service
availability charges were put in place under the prior owner. In addition,
there are meter test deposits for the water service which were also put in
place under the prior owner.
Staff believes that the Utility’s
current rates and the service availability charges are reasonable for both
water and wastewater with the exceptions of the meter test deposits,
miscellaneous service charges other than late payment and premises visit
charges, and the Utility’s readiness to serve charge. Staff’s recommendation
regarding the meter test deposits are discussed in Issue 4. The miscellaneous service charges other
than the late payment and premises visit charges are not consistent with the
Florida Statutes or Commission Rules and are discussed in Issue 5. In Issue 6,
staff addresses the Utility’s readiness to serve charge.
Staff recommends, of the Utility’s rates, charges, and
deposits for water and wastewater service that were in effect when Citrus
County transferred jurisdiction to the Commission, only the rates, charges, and
initial customer deposits shown in Schedule Nos. 1 and 2, are appropriate and
should be approved. The rates, charges, and initial customer deposits shown in
Schedule Nos. 1 and 2 should be effective for services rendered or connections
made on or after the stamped approval date on the tariff sheets. The Utility
should be required to charge the approved rates, charges, and initial customer
deposit shown in Schedule Nos. 1 and 2 until authorized to change them by the
Commission in a subsequent proceeding.
Issue 3:
Should the Utility’s current terms of payment be
revised to conform to Rule 25-30.335(6), F.A.C.?
Recommendation:
Yes. The Utility’s current terms of payment should
be revised to conform to Rule 25-30.335(6), F.A.C. The Utility should file
revised tariff sheets to reflect the appropriate terms of payment pursuant to
Rule 25-30.335(6), F.A.C. The approved tariffs should be effective for service
rendered or connections made on or after the stamped approval date on the
tariff sheets pursuant to Rule 25-30.475, F.A.C. In addition, the tariff sheets
will be approved upon staff’s verification that the tariffs are consistent with
the Commission’s decision and that the proposed customer notice is adequate.
(Chambliss)
Staff Analysis:
The Utility’s current water and wastewater tariff
indicates that a customer residing in Florida will become delinquent if their
bill is not paid within 16 days while a non-Florida resident has 21 days to pay
their bill before becoming delinquent. However, Rule 25-30.335(6), F.A.C.,
states that 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.
Based on the above, staff recommends that the Utility’s
methodology of billing a customer should be revised to conform to Rule
25-30.335(6), F.A.C. The Utility should file revised tariff sheets to reflect
the appropriate terms of payment pursuant to Rule 25-30.335(6), F.A.C. The
approved tariffs should be effective for service rendered or connections made on
or after the stamped approval date on the tariff sheets pursuant to Rule
25-30.475, F.A.C. In addition, the tariff sheets will be approved upon staff’s
verification that the tariffs are consistent with the Commission’s decision and
that the proposed customer notice is adequate.
Issue 4:
What are the appropriate meter test deposit charges
for Tarawood Utilities, LLC?
Recommendation:
Staff recommends that the appropriate meter test
deposits be revised to conform to Rule 25-30.266(2)(a), F.A.C. The Utility
should file a revised tariff sheet to reflect the appropriate meter test
deposits pursuant to Rule 25-30.335(6), F.A.C. The approved tariff should be
effective for service rendered or connections made on or after the stamped
approval date on the tariff sheets pursuant to Rule 25-30.475, F.A.C. In
addition, the tariff sheet will be approved upon staff’s verification that the
tariffs are consistent with the Commission’s decision and that the proposed
customer notice is adequate. (Chambliss)
Staff Analysis:
According to the Utility’s
current water tariff, Sheet No. 15, indicates meter test deposits of $25 for
field test and $25 plus cost for a certified test for the 5/8 inch x 3/4 inch
meter size. However, the Utility may not exceed meter test deposits pursuant to
Rule 25-30.266(2)(a), F.A.C., shown below on Table 4-1.
Table 4-1
Meter Test Deposits
|
Meter
Size
|
Fee
|
|
5/8” x 3/4”
|
$20.00
|
|
1 1/2”
|
$25.00
|
|
2” and over
|
Actual Cost of Test
|
Therefore, staff recommends that the appropriate meter
test deposits be revised pursuant to Rule 25-30.266(2)(a), F.A.C. The Utility
should file a revised tariff sheet to reflect the appropriate meter test
deposits pursuant to Rule 25-30.335(6), F.A.C. The approved tariff should be
effective for service rendered or connections made on or after the stamped
approval date on the tariff sheets pursuant to Rule 25-30.475, F.A.C. In
addition, the tariff sheet will be approved upon staff’s verification that the
tariffs are consistent with the Commission’s decision and that the proposed
customer notice is adequate.
Issue 5:
What are the appropriate water and wastewater
miscellaneous service charges for Tarawood Utilities, LLC?
Recommendation:
The appropriate water and wastewater miscellaneous
service charges are shown on Table 5-2. The Utility should be required to file
a proposed customer notice to reflect the Commission-approved charges. The
approved charges should be effective for service rendered or connections made on
or after the stamped approval date on the tariff sheet pursuant to Rule
25-30.475, F.A.C. In addition, the tariff sheets will be approved upon staff’s
verification that the tariffs are consistent with the Commission’s decision and
that the proposed customer notice is adequate. (Chambliss)
Staff Analysis:
The Utility did not request
to revise its existing miscellaneous service charges. Section
367.091, F.S., authorizes the Commission to establish, increase, or change a
rate or charge other than monthly rates or service availability charges. Staff
believes that some of the Utility’s existing charges should be revised to
conform to the Florida Statutes or Commission’s Rules. The Utility’s current
miscellaneous service charges for water and wastewater consist of various
charges and are shown on Table 5-1. Staff’s recommended miscellaneous service
charges are shown on Table 5-2.
Table 5-1
Tarawood
Utilities, LLC Existing Miscellaneous Service Charges
|
|
Existing Water
|
Existing Wastewater
|
|
Service Initial Fee and
Reconnection Charge
|
$20.00
|
$20.00
|
|
Premise Visit Fee – Outside of
Business Hours
|
$40.00
|
$40.00
|
|
Meter Replacement Fee – Customer Requested
|
$55.00
|
N/A
|
|
Utility
Locate at Customer Request Charge
|
$40.00
|
$40.00
|
|
Meter Re-read Charge
|
$20.00
|
N/A
|
|
Tampering or Prohibited Connection
or Use Chg.
|
$300.00
|
$300.00
|
|
Late Payment Charge
|
$5.00
|
$5.00
|
|
NSF Check Charge
|
$30.00
|
$30.00
|
Source: Utility’s current tariff and
response to staff’s deficiencies
Service Initial, Reconnection Charge, Premises
Visit, and Meter Re-Read
As shown on Table 5-1, the
Utility has a service initial fee and reconnection charge of $20 for water and
wastewater, which account for the transfer and turn on of a customer’s account,
as well as a premises visit charge of $40. Additionally, the Utility assesses a
meter re-read charge of $20. However, pursuant to Rule 25-30.460, F.A.C.,
initial and reconnection charges as well as meter re-read charges are subsumed
in the definition of the premises visit charge. The Utility currently defines
its premises visit as a customer requested visit due to no fault of the
Utility. The definition for the premises visit charge should be
updated to comply with Rule 25-30.460, F.A.C.
The Utility does not have a
violation reconnection charge. The violation reconnection charge accounts for
the discontinuance of service and the subsequent reconnection of service. Staff
believes the existing service initial fee and reconnection charge of $20 is
representative of the Utility’s cost to either turn off service or reconnect
service. As a result, staff believes a
violation reconnection charge of $40 ($20 x 2) is appropriate for water. For
wastewater, the violation reconnection should be at actual cost pursuant to
Rule 25-30.460, F.A.C. Based on the
above, staff recommends the violation reconnection charges of $40 for water and
actual cost for wastewater.
Locate at Customer Request
As shown on Table 5-1, the
Utility currently has a locate at customer request charge of $40 for water and
wastewater. However, the Utility recently indicated that the charge is
obsolete. Therefore, staff recommends the locate at customer request charge of
$40 be removed.
NSF Check Charge
The Utility currently has a
returned check charge of $30.00 for water and wastewater. However, staff
recommends that the Utility’s returned check charges should comply with Section
68.065, F.S., which allows for the assessment of charges for the collection of
worthless checks, drafts, or orders of payment. As currently set forth in
Section 68.065(2), F.S., the following NSF charges may be assessed:
1)
$25, if the face value does not exceed $50
2)
$30, if the face value exceeds $50 but does not exceed
$300
3)
$40, if the face value exceeds $300
4)
or 5 percent of the face amount of the check, whichever
is greater
Tampering or Prohibited
Connection or Use Charge
As shown on Table 5-1, the
Utility has a tampering or prohibited connection or use charge of $300 to
actual costs for water and wastewater. Rule 25-30.320(2)(j), F.A.C., provides
that a utility may refuse or discontinue service without notice in the event of
unauthorized or fraudulent use of service. Whenever service is discontinued for
fraudulent use of such service, the Utility, before restoring service, may
require the customer to make at his own expense all changes in piping or
equipment necessary to eliminate illegal use and to pay an amount reasonably
estimated as the deficiency in revenue resulting from the customer’s fraudulent
use before restoring service. Based on the above, staff recommends that the
Utility’s tampering or prohibited charge of $300 to actual costs be discontinued,
and modified to be approved solely at actual cost.
Meter Replacement Charge
As shown on Table 5-1 for water,
the Utility has a meter replacement charge of $55. However, the Utility has a
meter installation charge that includes its cost for replacing a meter.
Therefore, staff recommends the meter replacement charge of $55 be removed.
Table 5-2
Staff Recommended
Miscellaneous Service Charges
|
|
All Hours
|
|
Premises Visit
|
$40
|
|
Violation Reconnection Charge
(Water)
|
$40
|
|
Violation Reconnection Charge
(Wastewater)
|
Actual Cost
|
|
Tampering or Prohibited
Connection or Use Charge
|
Actual Cost
|
|
NSF Check Charge (Water and
Wastewater)
|
Pursuant to Section
68.065, F.S.
|
|
Late Payment Charge
|
$5.00
|
Conclusion
Based on the above, the appropriate water and wastewater
miscellaneous service charges shown on Table 5-2 should be approved. The
Utility should be required to file a proposed customer notice to reflect the Commission-approved
charges. The approved charges should be effective for service rendered or
connections made on or after the stamped approval date on the tariff sheet
pursuant to Rule 25-30.475(2), F.A.C. In addition, the tariff sheets should be
approved upon staff’s verification that the tariffs are consistent with the
Commission’s decision and that the proposed customer notice is adequate.
Issue 6:
Should Tarawood Utilities, LLC’s water and wastewater
charge for readiness to serve be classified as guaranteed revenue charges?
Recommendation:
The Utility’s water and wastewater charge for
readiness to serve should be classified as guaranteed revenue charges. The
charges should be effective for service rendered or connections made on or
after the stamped approval date on the tariff sheets, provided customers have
received notice pursuant to Rule 25-30.475, F.A.C. In addition, the tariff
sheets should be approved upon staff’s verification that the tariffs are
consistent with the Commission’s decision and that the proposed customer notice
is adequate. (Chambliss)
Staff Analysis:
The Utility’s current
service availability charges consist of an availability charge for readiness to
serve as shown on water tariff Sheet No. 17 and wastewater tariff Sheet No. 18.
According to the Utility, the readiness charge to serve of $2.49 for water and
$11.56 for wastewater is charged on a monthly basis to the developers, who are
the lot owners, and reserved service for all the undeveloped lots in Tarawood
Utilities’ service area. Staff believes that the Utility’s charge is consistent
with the Commission’s guaranteed revenue charge. The guaranteed revenue charge
is designed to help the Utility recover a portion of its cost from the time
capacity is reserved until a customer begins to pay monthly service charges.
Based on the above, the Utility’s water and wastewater
charge for readiness to serve should be classified as guaranteed revenue
charges. The charges should be effective for service rendered or connections
made on or after the stamped approval date on the tariff sheets provided
customers have received notice pursuant to Rule 25-30.475, F.A.C. In addition,
the tariff sheets should be approved upon staff’s verification that the tariffs
are consistent with the Commission’s decision and that the proposed customer
notice is adequate.
Issue 7:
Should this docket be closed?
Recommendation:
No. If no person whose substantial interests are
affected by the proposed agency action portion of this recommendation files a
protest within 21 days of the issuance of the order, a consummating order
should be issued. The docket should remain open for staff’s verification that
the revised tariff sheets and customer notice have been filed by the Utility
and approved by staff. Once this action is complete, this docket should be
closed administratively. (Dose)
Staff Analysis:
No. If no person whose substantial interests are
affected by the proposed agency action portion of this recommendation files a
protest within 21 days of the issuance of the order, a consummating order
should be issued. The docket should remain open for staff’s verification that
the revised tariff sheets and customer notice have been filed by the Utility
and approved by staff. Once this action is complete, this docket should be
closed administratively.
