Case Background
First Coast
Regional Utilities, Inc. (FCRU or Utility) is a Class C water and wastewater
utility in Duval, Baker, and Nassau Counties. In 2022, the Florida Public
Service Commission (Commission) granted the Utility’s original certificates and
approved the Utility’s current service availability charges. The approved service availability charges were
based on preliminary construction plans. Currently, there are no existing
facilities. FCRU indicated that it was in the final phase of design and construction
cost components have considerably changed. The Utility stated that revisions to
the service availability charges are necessary in order to remain in compliance
with Commission rules and ensure the appropriate cost are recovered through the
charges. On January 6, 2026, the Utility filed an application to revise its
water and wastewater main extension charge, plant capacity charge, and service
availability policy to account for the changes in cost.
By Order No. PSC-2026-0077-PCO-WS,
the Commission suspended the Utility’s proposed tariffs to allow staff
sufficient time to review the Utility’s petition and gather all pertinent
information in order to present an informed recommendation. On
March 4, 2026, the Utility provided responses to staff’s first data request. On
July 17, 2026, the Utility provided certain corrections to the proposed service
availability policy contained in the tariff.
The Commission has jurisdiction in this case pursuant to
Sections 367.091, 367.101, and 367.121(1)(a), Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should FCRU's existing water and wastewater service
availability charges and policy be revised, and if so, what are the appropriate
charges?
Recommendation:
Yes. FCRU’s existing water
and wastewater service availability charges and policy should be revised. Staff
recommends that the Utility’s requested main extension charges of $759 for
water and $994 for wastewater and plant capacity charges of $1,766 for water
and $9,281 for wastewater should be approved because it is reasonable and
within the guidelines of Rule 25-30.580, Florida Administrative Code (F.A.C.). The
approved charges and policy should be effective for connections made on or
after the stamped approval date on the tariff sheets pursuant to Rule
25-30.475, F.A.C. FCRU should be required to collect its approved service
availability charges until authorized to change them by the Commission in a
subsequent proceeding.
Staff Analysis:
Pursuant to Section 367.101, F.S., the Commission
shall set just and reasonable charges and conditions for service availability. Service
availability charges are one-time charges applicable to new connections, which
allow customers to pay their pro rata share of the facilities and plant costs. Rule
25-30.580, F.A.C., establishes guidelines for designing service availability
charges. Pursuant to Rule 25-30.580(1), F.A.C., the maximum amount of CIAC, net
of amortization, should not exceed 75 percent of the total original cost, net
of depreciation, of the Utility’s facilities and plant when the facilities and
plant are at their designed capacity. Rule 25-30.580(2), F.A.C., provides that
the minimum amount of CIAC should not be less than the percentage of such
facilities and plant that is represented by water transmission and distribution
and sewage collection systems.
FCRU’s existing water service availability charges consist
of $3,158 for the main extension, $752 for plant capacity, $285 for meter
installation, and $610 for service installation. For wastewater service availability,
the charges consist of $4,833 for main extension, $1,250 for plant capacity,
and actual costs for lateral installation. The existing policy for both water
and wastewater address only the applicability of the service availability
charges. The Utility is not requesting any changes to its meter installation
and service/lateral installation charges.
Main Extension Charge and Plant Capacity
Charge
FCRU requested revised main extension charges of $759 for
water and $994 for wastewater to recover a portion of the cost of the Utility’s
transmission and distribution and collection system from future customers. The main
extension charges decreased as a result of the Utility planning to install
fewer lines than originally projected. FCRU proposed plant capacity charges of
$1,766 for water and $9,281 for wastewater to allow the Utility to recover all
or part of its capital costs associated with the construction or expansion of
treatment facilities. As mentioned in the case background, the initial charges were
based on preliminary construction plans. FCRU is in the final stages of design
and has updated costs for its planned facilities. Although the Utility’s plant
in service decreased for both water and wastewater, the capacity of the
treatment facility decreased for wastewater, resulting in increased plant
capacity charges for the wastewater system. Capacity determines how many equivalent
residential connections can be served by the treatment facility.
FCRU’s revised service availability charges result in contribution
levels of 69.66 percent for water and 65.61 percent for wastewater. FCRU’s revised
service availability charges are reasonable and result in contribution levels
that are within the guidelines established in Rule 25-30.580, F.A.C. However,
the Utility anticipates receiving future contributions of facilities from
developers and staff recognizes that these contributions could cause FCRU to
exceed the guidelines established by rule. Through the Commission’s earnings
surveillance process, staff can monitor the contribution levels and the service
availability charges can be revisited if and when the Utility exceeds the
guidelines of the rule. Therefore, staff recommends the requested service availability
charges should be approved. The revised service availability policy is more
comprehensive than the existing policy and aligns with the rules pertaining to
service availability. Within its service availability policy, FCRU indicated
that it would assess actual costs for inspections and plan reviews, which staff
believes is reasonable. As result, staff recommends that the revised service
availability policy should be approved.
Conclusion
FCRU’s existing water and wastewater service
availability charges and policy should be revised. Staff recommends that the
Utility’s requested main extension charges of $759 for water and $994 for
wastewater and plant capacity charges of $1,766 for water and $9,281 for
wastewater should be approved. The revised service availability policy complies
with Commission rules and should be approved. The approved charges and policy
should be effective for connections made on or after the stamped approval date
on the tariff sheets pursuant to Rule 25-30.475, F.A.C. FCRU should be required
to collect its approved service availability charges until authorized to change
them by the Commission in a subsequent proceeding.
Issue 2:
Should this docket be closed?
Recommendation:
If a protest is filed within 21 days of the issuance
date of the Order, the tariff should remain in effect with the charge held
subject to refund pending resolution of the protest. If no timely protest is
filed, a consummating order should be issued and, once staff verifies that the
revised tariff sheet has been filed and the notice of the charge has been
approved by staff and provided to property owners, the docket should be
administratively closed. (Farooqi)
Staff Analysis:
If a protest is filed within 21 days of the issuance
date of the Order, the tariff should remain in effect with the charge held
subject to refund pending resolution of the protest. If no timely protest is
filed, a consummating order should be issued and, once staff verifies that the revised
tariff sheet has been filed and the notice of the charge has been approved by
staff and provided to property owners, the docket should be administratively
closed.
