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State of Florida
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Public Service Commission
Capital Circle Office Center ● 2540 Shumard
Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
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DATE:
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March 26, 2026
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TO:
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Office of Commission Clerk (Teitzman)
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FROM:
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Division of Engineering (Lewis, King,
Ramos, Thompson)
Division of Economics
(Bruce, Chambliss, Hudson)
Office of the General
Counsel (Farooqi, Crawford)
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RE:
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Docket No. 20250140-WU – Application for
amendment of Certificate No. 684-W to add territory in Citrus County, by
Citrus Waterworks, Inc.
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AGENDA:
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04/07/26 – Regular Agenda – Interested Persons May Participate
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COMMISSIONERS ASSIGNED:
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All Commissioners
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PREHEARING OFFICER:
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Administrative
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CRITICAL DATES:
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None
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SPECIAL INSTRUCTIONS:
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Schedule immediately before Docket No. 20250075-WU.
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Case Background
On February 6, 2025, the Florida Public
Service Commission (Commission) granted Citrus Waterworks, Inc. (Citrus or
Utility) a grandfather certificate to operate as a water utility in Citrus
County. Citrus is a Class C water utility
providing service to approximately 154 residential customers and one general
service customer. The Utility is in the Southwest Florida Water Management
District.
On April 30, 2025, Citrus filed an
application for a staff-assisted rate case (SARC) that is being reviewed in
Docket No. 20250075-WU. During staff’s review of the application,
supporting documentation, and the legal description of the territory, staff
discovered that Citrus is serving 40 residential customers and one general
service customer outside of, and adjacent to, the Utility’s certificated
territory.
As a result, on November 18, 2025, Citrus
filed an application to amend Certificate No. 684-W, to expand its existing
territory. In its application, the Utility stated that the customers were being
served when Citrus acquired the Utility. The amendment application was
initially found to be deficient and staff issued a deficiency letter on December
16, 2025. The application was deemed complete on January 30, 2026, which is
considered the official filing date.
This
recommendation addresses the Utility’s request to extend its water service
territory, and the Utility’s apparent violation of Commission statutes for
serving customers outside of its certificated territory. The Commission has
jurisdiction pursuant to Section 367.045, Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission initiate a show cause
proceeding against Citrus for an apparent violation of Section 367.045, F.S.?
Recommendation:
No. A show cause proceeding should not be initiated.
(Farooqi)
Staff Analysis:
Legal Standard
Section 367.045(2), F.S., states that a utility may not
extend its service outside the area described in its certificate of
authorization until the Commission approves an amended certificate of
authorization to include the new area. Section 367.161(1), F.S., authorizes the
Commission to assess a penalty of not more than $5,000 for each offense if a
utility is found to have willfully violated any provision of Chapter 367, F.S.
Analysis
As indicated in the case background, during staff’s
evaluation of Citrus’ legal territory description in its staff-assisted rate
case, Docket No. 20250075-WU, Commission staff notified the Utility that it was
serving customers outside of its certificated territory. The provision of
service outside of its approved territorial boundary is an apparent violation
of Section 367.045(2), F.S. Nevertheless, staff does not believe this apparent
violation rises to the level of a show cause action. The service of
extra-territorial customers took place before the current owner acquired the
system. Once the apparent violation was identified, Citrus immediately filed an
application requesting the territory be added to come into compliance with the
statutory requirement. Further, Citrus has filed annual reports and paid
regulatory assessment fees based on the total number of customers it serves,
including those inadvertently outside of its certificated area.
Conclusion
For the reasons discussed above, staff recommends that the
Commission not initiate a show cause proceeding for the apparent violation of
Section 367.045(2), F.S.
Issue 2:
Should the Commission approve Citrus Waterworks,
Inc.’s application to amend Certificate No. 684-W to extend its service
territory in Citrus County?
Recommendation:
Yes. The Commission should amend Certificate No. 684-W
to include the territory described in Attachment A, effective the date of the
Commission’s vote. The resultant order should serve as Citrus’ amended
certificate and should be retained by the Utility. Citrus should continue to charge
customers in the amended service territory the rates and charges contained in the
Utility’s current tariff until a change is authorized by the Commission in a
subsequent proceeding. (Lewis, Chambliss)
Staff Analysis:
Legal Standard
Applications
for amendments of service territory are governed by Section 367.045, F.S, and
Rule 25-30.036, Florida Administrative Code (F.A.C.). The statute provides that
the Commission may grant, amend, or deny a certificate in whole or in part or
with modifications in the public interest. The rule provides all of the
requirements the applicant must provide in an application for amendment to a
certificate of authorization to extend or delete service area. In granting or
amending a certificate, the Commission does not need to consider any local
comprehensive plan unless an objection is timely made. No such objection has
been made in this proceeding.
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, F.A.C. The appropriate filing fee,
as required by Section 367.145(2), F.S., was received by the Commission on
November 25, 2025. Citrus provided notice of the application pursuant to
Section 367.045, F.S., and Rule 25-30.030(5), F.A.C. The notice provided 30
days for customers to file an objection to the amendment. No objection was
received and the time for filing such has expired.
Citrus provided an adequate legal
description and service territory map as prescribed by Rules 25-30.036(2)(f)
and (h), F.A.C. The legal description is appended to this recommendation as
Attachment A. The Utility also submitted an affidavit, consistent with Rule 25-30.036(2)(q),
F.A.C., stating that it has tariffs and annual reports on file with the
Commission. Citrus verified that the affected customers are being charged the
rates in its current tariff; however, the Utility should revise Original Sheet
No. 3.1 in its tariff to reflect the correct legal description of its service
territory.
The Utility has satisfied all of
the conditions required by Rule 25-30.036(2), F.A.C. Therefore, staff
recommends that the Commission approve Citrus’ request to amend Certificate No.
684-W to expand its service territory.
Conclusion
Based on the above information,
the Commission should amend Certificate No. 684-W to include the territory
described in Attachment A, effective the date of the Commission’s vote. The
resultant order should serve as Citrus’ amended certificate and should be
retained by the Utility. Citrus should continue to charge customers in the amended
service territory the rates and charges contained in the Utility’s current
tariffs until a change is authorized by the Commission in a subsequent
proceeding.
Issue 3:
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. (Farooqi)
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.
Citrus Waterworks, Inc.
Citrus County
In Section 06, Township 17 North, Range 18 East, Citrus
County, Florida
Citrus Waterworks,
North Service Territory
Commence at the Southwest corner
of Section 06, Township 17 North, Range 18 East, Citrus County, Florida, the
Point of Beginning; thence run North 63“43' 06.27" West 823.766 feet,
North 19°43' 18.34" West 97.222 feet, thence North 86°09’ 09.90" West
614.071 feet, thence South 2°44' 11.00" East 482.164 feet; thence South
0°18' 05.53" East 561.552 feet, thence run North 89°37' 49.55" East
1358.116 feet, thence run North 0°00' 17.14" East 536.924 feet, to the
Point of Beginning.
Citrus Waterworks,
South Service Territory
Commence at the Southwest comer of Section 06, Township 17
North, Range 18 East, Citrus County, Florida, thence run South 01° 02' 38.27”
West 1241.582 feet to the Point of Beginning; thence run North 88° 21 51.33”
West 1344.191 feet, thence North 0° 00' 38.89 ” East 640.824 feet, thence South
71° 33'30.90” West 218.838 feet, thence South 55° 38' 06.38” West 2674.271
feet, thence run South 00° 04' 47.57” East 1474.357 feet, thence South 89° 59 ’
18.68" East 3778.532 feet, thence North 00° 30’ 47.90" West 245 1.505
feet to the Point of Beginning.
FLORIDA PUBLIC SERVICE COMMISSION
Authorizes
Citrus
Waterworks, Inc.
Pursuant
to
Certificate
Number 684-W
to provide water service in Citrus 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-2025-0041-PAA-WU 02/06/2025 20240111-WU Grandfather Certificate
* * 20250140-WU Certificate Amendment
*Order
Number and date to be provided at time of issuance.