Discussion
of Issues
Issue 1:
Should Indian Springs Utilities, Inc.’s application
for a grandfather wastewater certificate in Citrus County be acknowledged?
Recommendation:
Yes. Indian Springs’ application should
be acknowledged and the Utility should be granted Certificate No 588-S,
effective May 28, 2024, to serve the territory described in Attachment A. The
resultant order should serve as Indian Springs’
certificate and should be retained by the Utility. (Lewis, Bardin,
Farooqi)
Staff Analysis:
Legal Standard
Under
Section 367.171(2)(b), F.S., on the day a county declares it is subject to the
provisions of Chapter 367, any utility engaged in the operation or construction
of a non-exempt water or wastewater system shall be entitled to receive a
certificate for the area served by the utility. Within 90 days after the day
this chapter becomes applicable to it, the utility shall make application for a
grandfather certificate. The filing requirements for a grandfather application
are set forth in Rule 25-30.035, F.A.C.
Analysis
The Utility’s application for a certificate
under grandfather rights to provide 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. The Utility has its own treatment facilities, and
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 provided in Attachment A.
As stated in the case background, Indian
Springs serves approximately 185 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 2025 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 Indian Springs be granted Certificate No. 588–S to
serve the territory described in Attachment A. The resultant order should serve
as Indian Springs’ certificate and should be retained by
the Utility.
Issue 2:
What rates, charges, and deposits should be approved
for Indian Springs?
Recommendation:
Of the Utility’s rates, charges, and deposits that
were in effect when Citrus County transferred jurisdiction to the Commission,
only the rates, charges, and initial customer deposits shown in Schedule No. 1
are appropriate and should be approved. In addition, the Utility’s existing
premises visit, late payment, and NSF charges should be approved. These
charges, as well as the rates and initial customer deposit shown in Schedule
No. 1, 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 deposits until authorized to
change them by this Commission in a subsequent proceeding. (Bethea)
Staff Analysis:
Citrus County Water and Wastewater Authority approved the Utility’s
current monthly water and wastewater rates by Final Order No. 23-04 on August
14, 2023. The county-approved final order and existing tariff sheets were
provided in support of the Utility’s authorized rates. The wastewater rates
include a base facility charge and per 1,000 gallonage charge with a 6,000
gallonage cap. Additionally, the Utility’s rates also include a fixed bulk rate
for multi-residential service. The Utility’s charges have been in effect since
the Utility was acquired by the existing owner. Indian Springs’ charges consist
of miscellaneous service and service availability charges, which include a
service availability policy. In addition, the Utility has customer deposits.
Staff believes that the Utility’s current rates and the service availability
charges are reasonable, with the exceptions of the miscellaneous service
charges. The miscellaneous service charges are not consistent with Commission
rules and staff recommends they be modified in Issue 4.
Staff recommends that of the Utility’s rates, charges, and
deposits that were in effect when Citrus County transferred jurisdiction to the
Commission, only the rates, charges, and initial customer deposits shown in
Schedule No. 1, are appropriate and should be approved. In addition, the
Utility’s existing premises visit, late payment, and NSF charges should be
approved. These charges, as well as the rates, and initial customer deposit
shown in Schedule No. 1, 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 charge the approved
rates, charges and deposits until authorized to change them by this 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
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. (Bethea)
Staff Analysis:
The Utility’s current
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 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 Utility should be required to file a proposed customer
notice to reflect the revised terms of payment. 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 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 4:
What are the appropriate miscellaneous service
charges for Indian Springs Utilities, Inc.?
Recommendation:
With the exception of the Utility’s existing premises
visit, late payment, and NSF charges (which are recommended for approval in
Issue 2), the appropriate miscellaneous service charges shown on Table 4-2 and
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. (Bethea)
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
recommends that some of the Utility’s existing charges that are set forth in
Table 4-1, be revised to conform to Rule 25-30.460, F.A.C. As discussed in
Issue 2, the Utility’s existing premises visit, late payment, and NSF charges
should be approved without modification, but are shown below for illustrative
purposes. The Utility’s current miscellaneous service charges consist of
various charges and are shown on Table 4-1.
Table 4-1
Indian
Springs Utilities, Inc.
Existing
Miscellaneous Service Charges
|
|
Existing Wastewater
|
|
Initial Connection Fee
|
$15.00
|
|
Normal
Reconnection Fee
|
$45.00
|
|
Violation Reconnection Fee
|
$45.00
|
|
Premises Visit Fee
|
$45.00
|
|
Late Payment Fee
|
$5.00
|
|
NSF/Returned Check Fee
|
Pursuant to Section 68.065(2), F.S.
|
Source: Utility’s current tariff and
response to staff’s deficiencies.
Premises Visit and Violation Reconnection Charge
As shown on Table 4-1, the Utility’s existing miscellaneous service
charges consists of two charges which are obsolete. Rule 25-30.460,
F.A.C., does not allow for initial connection and normal reconnection charges.[3] The
initial connection and normal reconnection tasks are subsumed within the
definition of the premises visit charge. In addition, pursuant to Commission
rule, violation reconnection charges are at actual cost for wastewater. As a
result, 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 charge at actual cost for wastewater.
Table 4-2
Indian Springs Utilities, Inc.
Staff Recommended
Miscellaneous Service Charges
|
|
All Hours
|
|
Premises Visit
|
$45
|
|
Violation Reconnection Charge
|
Actual Cost
|
|
NSF Check Charge (Wastewater)
|
Pursuant to Section
68.065, F.S.
|
|
Late Payment Charge
|
$5.00
|
Conclusion
Based on the above, the Utility’s existing premises visit,
late payment, and NSF charges remain unchanged and are recommended for approval
in Issue 2, and are shown above for illustrative purposes. 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 5:
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 staff-approved notice has been
provided to customers and 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. (Farooqi)
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 staff-approved notice has been
provided to customers and 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.
