Discussion
of Issues
Issue 1:
Should CSWR-Florida Utility Operating Company, LLC’s
application for grandfather water and wastewater certificates in Citrus County
be acknowledged?
Recommendation:
Yes. CSWR’s statutory right should be
acknowledged and the Utility should be granted Certificate Nos. 694-W, and
587-S, effective May 28, 2024, to serve the territory described in Attachment
A. The resultant order should serve as CSWR’s certificate and should be
retained by the Utility. (Lewis, Bardin)
Staff Analysis:
The Utility’s application for certificates
under grandfather rights to provide water and wastewater services 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, CSWR
serves approximately 6,629 water and 5,474 wastewater customers. 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.
Conclusion
Based on the above, staff recommends
that CSWR be granted Certificate No. 694-W and 587–S to serve the territory
described in Attachment A. The resultant order should serve as CSWR’s
certificates and should be retained by the Utility.
Issue 2:
What rates and charges should be approved for
CSWR-Florida Utility Operating Company, LLC?
Recommendation:
Of the Utility’s rates, charges, and deposits for
water and wastewater services that were approved by Citrus County and in effect
when Citrus County transferred jurisdiction to the Commission, the rates and
charges shown on Schedule Nos. 1A and 1B, should be approved. In addition, the
Utility’s existing violation reconnection charge for water should be approved.
This charge, as well as the rates and charges shown in Schedule Nos. 1A and 1B,
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 violation reconnection charge for water as well as the
rates and charges shown in Schedule Nos. 1A and 1B, until authorized to change
them by the Commission in a subsequent proceeding. (Bruce)
Staff Analysis:
Citrus County Water and
Wastewater Authority approved the Utility’s current monthly water and
wastewater rates by Final Order No. 22-06 on October 10, 2022. The monthly
water rates consist of a base facility charge (BFC) and a five-tier inclining
block rate structure per meter size. The wastewater rates consist of a BFC and
a gallonage charge, including a 6,000 gallonage cap.
The Utility’s water and
wastewater charges consist of miscellaneous service charges and service
availability charges. The miscellaneous service charges and the service
availability charges were established under the prior owner; however, some of
the miscellaneous service charges are not consistent with the Florida Statutes
or Commission Rules. Staff recommends they be modified in Issue 6. The
Utility’s existing violation reconnection charge for water should remain
unchanged and should be approved.
Staff recommends that the Utility’s rates, charges, and
deposits for water and wastewater services that were approved by Citrus County
and in effect when Citrus County transferred jurisdiction to the Commission,
shown on Schedule Nos. 1A and 1B, should be approved. In addition, the Utility’s
existing violation reconnection charges for water should be approved. This
charge, as well as the rates and charges shown in Schedule Nos. 1A and 1B,
should be effective for services rendered or connections made on or after the
stamped approval date on the tariff sheets. The Utility should charge the
approved violation reconnection charge for water, as well as the rates and
charges shown in Schedule Nos. 1A and 1B, 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. (Bruce)
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. Therefore, 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.
Issue 4:
What are the appropriate initial customer deposits
for CSWR?
Recommendation:
The appropriate initial customer deposit should be $40
for the residential 5/8 inch x 3/4 inch meter sizes for water and $60 for
wastewater. The initial customer deposits for all other residential meter sizes
and all general service meter sizes should be two times the average estimated
bill for water and wastewater. Staff recommends that the residential rental
deposit of $60 for water and $75 for wastewater be removed. The approved
initial customer deposits should be effective for services rendered or
connections made on or after the stamped approval date on the tariff sheets
pursuant to Rule 25-30.475, F.A.C. The Utility should be required to collect
the approved deposits until authorized to change them by the Commission in a
subsequent proceeding. (Bruce)
Staff Analysis:
Rule 25-30.311, F.A.C., provides the criteria for
collecting, administering, and refunding customer deposits. Customer deposits
are designed to minimize the exposure of bad debt expense for the Utility and,
ultimately, the general body of ratepayers. An initial customer deposit ensures
that the cost of providing service is recovered from the cost causer.
Historically, the Commission has set initial customer deposits equal to two
times the average estimated bill.
As shown
in the Utility’s tariff, the initial customer deposits for the water
residential 5/8 inch x 3/4 inch meter size is $40 and $50 for general service.
The general service consists of deposit amounts for each meter size up to 12
inches. For wastewater, the initial customer deposits for the wastewater
residential 5/8 inch x 3/4 inch meter size is $60. The wastewater general
service also consists of deposit amounts for each meter size up to 12 inches.
Furthermore, the Utility’s tariff indicates a residential rental deposit of $60
for water and $75 for wastewater. However, Rule 25-30.311, F.A.C., does not
state that a residential homeowner in the service area can be charged a
different deposit amount nor is it Commission practice. Therefore, staff
recommends that the residential rental deposit of $60 for water and $75 for
wastewater be removed.
The
Commission’s practice has been to set initial customer deposits equal to two
billing periods based on the average consumption for a 12-month period for each
class of customers. However,
the Utility did not provide billing data or the average consumption for its
customer base to determine the appropriate customer deposit for its water and
wastewater customers. Therefore, staff recommends that the initial customer
deposit for the water residential remain at $40 for the residential 5/8 inch x
3/4 inch meter size. All other residential meter sizes as well as all general
service meter sizes should be charged two times the average estimated bill for
water pursuant to the Rule 25-30.311, F.A.C. For wastewater, staff also
recommends that the initial customer deposit remain at $60 for the residential
5/8 inch x 3/4 inch meter size. All other residential meter sizes and all
general service meter sizes should be charged two times the average estimated
bill for wastewater pursuant to the rule.
Conclusion
Staff recommends that the appropriate initial customer
deposit should be $40 for the residential 5/8 inch x 3/4 inch meter sizes for
water and $60 for wastewater. The initial customer deposits for all other
residential meter sizes and all general service meter sizes should be two times
the average estimated bill for water and wastewater. Staff recommends that the
residential rental deposit of $60 for water and $75 for wastewater be removed. The
approved initial customer deposits should be effective for services rendered or
connections made on or after the stamped approval date on the tariff sheets
pursuant to Rule 25-30.475, F.A.C. The Utility should be required to collect
the approved deposits until authorized to change them by the Commission in a
subsequent proceeding.
Issue 5:
What are the appropriate meter test deposit charges
for CSWR?
Recommendation:
Staff recommends that the appropriate meter test
deposits be revised to conform to Rule 25-30.266(2)(a), F.A.C. (Bruce)
Staff Analysis:
The Utility’s current water
tariff, Second Revised Sheet No. 15.1, indicates meter test deposits for
various meter sizes as shown in Table 5-1 below. However, pursuant to Rule
25-30.266(2)(a), F.A.C., the Utility may not exceed meter test deposits, shown
below in Table 5-2.
Table 5-1
Utility’s Current Meter
Test Deposits
|
Meter
Size
|
Fee
|
|
5/8” x 3/4”
|
$81.20
|
|
3/4”
|
$86.30
|
|
1”
|
$96.45
|
|
1 1/2”
|
$101.50
|
|
2” and over
|
Actual Cost
|
Table 5-2
Staff Recommended Meter
Test Deposits
|
Meter
Size
|
Fee
|
|
5/8” and 3/4”
|
$20.00
|
|
1” and 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, to the
amounts shown on Table 5-2.
Issue 6:
What are the appropriate water and wastewater
miscellaneous service charges for CSWR?
Recommendation:
With the exception of the Utility’s existing
violation reconnection charge for water (which is discussed in Issue 2), the
appropriate miscellaneous service charges shown on Table 6-2 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, 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. (Bruce)
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 the Commission’s rules. However, as
discussed in Issue 2, staff recommends that the Utility’s violation
reconnection charge for water remain unchanged. The Utility’s current
miscellaneous service charges for water and wastewater are shown below on Table
6-1. Staff’s recommended miscellaneous service charges are shown on Table 6-2.
Table 6-1
CSWR-Florida
Utility Operating Company, LLC
Existing
Miscellaneous Service Charges
|
|
Existing Water
|
Existing Wastewater
|
|
Initial Connection Fee
|
$50.75
|
$50.75
|
|
Normal Reconnection Fee
|
$50.75
|
$50.75
|
|
Violation Reconnection Fee
|
$50.75
|
$50.75
|
|
Premise
Visit Fee – (In Lieu of Disconnection)
|
$50.75
|
$50.75
|
|
Late Payment Charge
|
$5.10
|
$5.10
|
|
|
or 1.5 percent
|
or
3 percent
|
|
Tampering/Unauthorized Use Charges
|
|
|
|
5/8 x 3/4"
|
$152.25
|
$152.25
|
|
1”
|
$172.55
|
$172.55
|
|
1 1/2”
|
$192.85
|
$192.85
|
|
2”
|
$253.75
|
$253.75
|
|
All Others
|
$253.75 plus cost
|
$253.75 plus cost
|
|
Developer Changing Meter Location
|
$147.20
|
N/A
|
|
Tampering with Backflow Device
|
$147.20
|
N/A
|
|
Meter Re-read Fee
|
$40.60
|
N/A
|
|
Adjustment of Meter Box
|
|
|
|
5/8 x 3/4"
|
$50.75
|
N/A
|
|
All Others
|
Actual Cost
|
N/A
|
|
Testing of Backflow Prevention
Device
|
$101.50
|
N/A
|
|
|
|
|
|
Source: Utility’s current tariff
Initial, Reconnection Charge, Premises
Visit, Violation Reconnection (Wastewater), and Meter Re-Read
As shown on Table 6-1, the
Utility currently has an initial connection charge, reconnection charge, a
violation reconnection charge, and a premises visit charge (in lieu of
disconnection) of $50.75 for water and wastewater. However, pursuant to Rule
25-30.460(2)(a), F.A.C., initial and reconnection charges are subsumed within
the definition of the premises visit charge. Therefore, staff recommends that the
initial and normal reconnection charges be removed. For wastewater, the
violation reconnection should be at actual cost pursuant to Rule 25-30.460,
F.A.C. The Utility has a meter re-read charge of $40.60 in place. This charge
was put in place under the prior owner and according to the Utility this charge
has not been assessed. Although the Utility has not assessed a meter re-read
charge, if a customer requests a meter re-read it is covered as a premises
visit charge under the Commission’s rules. Therefore, staff recommends that the
Utility’s meter re-read charge should be removed.
Late Payment Charge
As shown on Table 6-1, the Utility’s
tariff states that a customer will be charged a late payment charge of $5.10 or
1.5 percent of the payment due for water and 3 percent for wastewater,
whichever is greater. This charge is levied when a customer’s billing account
is not paid within 16 days for a Florida resident. As discussed in Issue 3,
staff is recommending that the Utility’s terms of payment be conformed to Rule
25-30.335(6), F.A.C. Furthermore, staff does not believe that a
percentage of the bill due is appropriate for a late payment charge because it
is a cost-based charge that the Commission has approved for other water
utilities, historically.
Therefore, staff recommends that the 1.5 percent and 3 percent be removed and
the late payment charge be a single charge of $5.10.
Adjustment of Meter Box
As shown on Table 6-1, the
Utility currently has an adjustment of meter box charge of $50.75 for the 5/8 x
3/4" meter size and actual cost for all other meter sizes for water
service. The Utility indicated that this charge was put in place under the
prior owner and has never been assessed. The Utility does not plan to assess an
adjustment of meter box charge. Therefore, staff recommends this charge be
removed.
Testing of Backflow
Prevention Device Charge and Tampering with Backflow Device
As shown on Table 6-1, the
Utility has a testing of backflow prevention device charge of $101.50 for water,
as well as a tampering with backflow device charge of $147.20. The Utility
representative indicated that these charges were put in place under the prior
owner and have never been assessed. However, it is the responsibility of the
customer to annually test their backflow prevention assembly. The proper
functioning of backflow devices are essential to the integrity of the entire
water system. Staff believes that if a customer does not perform its testing, the
Utility should assess the charge if it has to undertake the testing of the
backflow prevention device. Staff believes the testing charge is appropriate.
For the tampering with backflow device, if the Utility has any occurrences, it
can assess actual cost as recommended below for the tampering charge. Therefore, the tampering with backflow device
charge should be removed.
Developer Changing Meter
Location
As shown on Table 6-1, the
Utility has a developer changing meter location charge, which is assessed if a
developer changes a meter location and the move requires the company to adjust
the meter, change the meter in any way in order to either provide continuing
service, or to read the meter. However, the Utility also indicated that this
charge was put in place under the prior owner and has not been assessed because
all of the Utility’s meters are stable and the Utility does not plan to assess
the developer changing meter location in the future. Therefore, staff
recommends that the developer changing meter location charge be removed.
Tampering/Unauthorized
Use Charge
As shown on Table 6-2, the
Utility has tampering/unauthorized use charges of various amounts per meter
size plus actual cost for all meter sizes over 2 inches for water and
wastewater. However, 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 connection or use charges be approved based on actual
cost.
Landlord Service
The Utility’s tariff shows a
landlord service notification, which states that the homeowner is responsible
for the water and wastewater service at the time a renter terminates their
service. If a renter notifies the Utility that they are terminating service,
the responsibility for the water bill will be automatically transferred to the
homeowner on the date that the renter’s service has terminated. There are no
subsections in Rule 25-30, F.A.C., which indicates that a landlord is
responsible if service is terminated by a renter. Only the customer of record
who applied for service is responsible. A homeowner is not required to have
water and wastewater service when a renter terminates service or during periods
of vacancy of the property. Therefore, this provision in the Utility’s existing
tariff should be removed.
Damage to the Utility
Property
The Utility’s tariff states that
a person who causes damage to the Utility’s property will be responsible for
payment of the total cost, plus any taxes, of the repair of the property
whether the repair is completed by an independent contractor or the Utility’s
employees. If the Utility experiences any damage to its property, staff
believes that it is not within the Commission’s authority to implement a charge
or any costs associated with property damage. Therefore, staff recommends that
the damage to utility property be removed.
Conclusion
Based on the above, with the exception of the Utility’s
existing violation reconnection charge for water (which is discussed in Issue
2), the appropriate miscellaneous service charges shown on Table 6-2 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, 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.
Table 6-2
Staff Recommended
Miscellaneous Service Charges
|
|
All Hours
|
|
Premises Visit
|
$50.75
|
|
Violation Reconnection Charge
(Water)
|
$50.75
|
|
Violation Reconnection Charge
(Wastewater)
|
Actual Cost
|
|
Tampering or Prohibited
Connection or Use Charge
|
Actual Cost
|
|
Late Payment Charge
|
$5.10
|
Issue 7:
Should the Commission approve the removal of the
CIAC Tax Impact charge from the Utility’s current tariff?
Recommendation:
Yes. Staff recommends that the Commission approve
the removal of the Utility’s CIAC Tax Impact charge from its current tariff.
(Bruce)
Staff Analysis:
The Utility’s tariff indicates a tax gross-up of CIAC.
Due to changes in Federal Tax Law, the Commission no
longer requires CIAC tax gross ups. Therefore, staff recommends that the
Commission approve the removal of the Utility's CIAC Tax Impact charge from its
current tariff.
Issue 8:
Should this docket be closed?
Recommendation:
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 have been
filed by the Utility and approved by staff. Once this action is complete, this
docket should be closed administratively if no timely protest has been filed.
(Brownless)
Staff Analysis:
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 have been
filed by the Utility and approved by staff. Once this action is complete, this
docket should be closed administratively if no timely protest has been filed.
SERVICE
AREA LEGAL DESCRIPTION
ROLLING OAKS
A parcel of land
being located in Sections 1, 2, 11, 12, 13, 14 ,15 and 22 of Township 18 South,
Range 18 East, and Sections 6, 7 and 8 of Township 18 South, Range 19 East, and
in Section 36 of Township 17 South, Range 18 East, all in Citrus County,
Florida, and being more particularly described as follows:
Beginning at the
SE corner of said Section 13, Township 18 South, Range 18 East, thence run
along the south lines of said Sections 13 and 14 (also being the south lines of
Beverly Hills subdivision) the following calls: run South 89° 50' 33" West
for 2,592.330 feet; run South 89° 45' 05" West for 4,063.93 feet; thence
run South 89° 32' 46"West for 647.17 feet; thence run South 89° 35'
21" West for 1,037.92 feet; thence run South 89° 36' 28" West for
1,395.00 feet; thence run South 89° 36' 28" West for 721.80 feet to the NE
corner of Section 22; thence run South 00° 09' 21" East for 1,269.01 feet;
thence run North 89° 42' 21" West for 962.01 feet; thence run South 00° 18'
00" West for 690.65 feet; thence run South 89° 48' 45" West for
395.97 feet; thence run North 00° 34' 14" West for 694.06 feet; thence run
North 89° 54' 42" West for 2,194.73 feet to the eastern right-of-way of N.
Lecanto Highway 491; thence run in a northerly direction along said
right-of-way the following calls: run North 23° 28' 45" East for 1,567.82
feet; thence run North 23° 35' 44" East for 1,518.340 feet; thence run
along a curve to the right for 686.89 feet, said curve having a radius of
2,988.609 feet and a chord of North 30° 24' 41" East for 685.37 feet;
thence run North 39° 09' 53" East for 767.89 feet; thence run South 53°
55' 21" East for 24.76 feet; thence run North 40° 01' 51" East for
239.12 feet; thence run North 50° 44' 06" West for 29.99 feet; thence run
North 39° 01' 54" East for 207.11 feet; thence run South 50° 55' 25"
East for 30.09 feet; thence run North 38° 40' 08" East for 592.82 feet;
thence run North 51° 38' 37" West for 29.99 feet; thence run North 38° 40'
44" East for 729.39 feet; thence run North 40° 02' 02" East for
1,507.23 feet; thence run North 02° 06' 46" West for 32.94 feet; thence
run North 39° 03' 13" East for 879.32 feet; thence run North 38° 55'
57" East for 700.68 feet; thence run North 39° 00' 00" East for
2,500.00 feet; thence run North 39° 00' 00" East for 300.00 feet; thence
run North 39° 00' 00" East for 350.00 feet; thence run North 44° 53'
47" East for 96.96 feet; thence run North 38° 54' 49" East for
4,000.55 feet; thence run along a curve to the left for 1,680.13 feet, said
curve having a radius of 7,383.57 feet and a chord of North 32° 14' 47"
East for 1,676.51 feet; thence run North 25° 04' 23" East for 1,601.41
feet; thence run North 88° 25' 28" East for 404.43 feet; thence run South
00° 32' 20" West for 931.21 feet; thence run North 88° 25' 04" East
for 1,376.98 feet; thence run North 00° 31' 56" West for 1,696.23 feet;
thence run South 88° 17' 21" West for 942.97 feet; thence run North 25°
00' 37" East for 1,512.58 feet; thence run along a curve to the right for
1,134.33 feet said curve having a radius of 2,415.11 feet and a chord of North
38° 28' 04" East for 1,123.93 feet; thence run North 52° 27' 46" East
for 75.00 feet; thence run North 52° 35' 09" East for 697.31 feet to the
east line of said Section 36, Township 17 South, Range 18 East; thence leaving
said highway right-of-way run South 00° 18' 15" West for 2,662.29 feet to
the NW corner of Section 6, Township 18 South, Range 19 East; thence run North
89° 25' 26" East for 2,670.32 feet; thence run North 89° 44' 51" East
for 2,615.94 feet to the NE corner of said Section 6; thence run South 00° 09'
35" East for 2,656.03 feet; thence run South 89° 31' 11" West for
2,637.06 feet; thence run South 00° 26' 40" East for 2,648.82 feet to the
north line of Section 7; thence run North 89° 57' 14" East for 5,278.23
feet; thence run South 00° 09' 43" East for 2,670.04 feet; thence run
North 89° 37' 03" West for 5,306.56 feet; thence run South 00° 08'
13" East for 2,657.88 feet to the north line of Section 18; thence run
North 89° 32' 18" West for 2,650.16 feet to the NW corner of said section
18, said point also being the NE corner of Beverly Hills Unit 8 subdivision;
thence run South 00° 05' 30" West for 3,456.35 feet; thence run South 00°
22' 11" West for 1,830.61 feet back to the Point of Beginning. Said parcel
contains 4,089 acres, more or less.
