Table of Contents Commission Conference Agenda September 15, 2015

Table of Contents Commission Conference Agenda September 15, 2015
Table of Contents
Commission Conference Agenda
September 15, 2015
1**
Consent Agenda .................................................................................................... 1
2**
Docket No. 150022-WU – Initiation of show cause proceedings against
Wildwood Water Company in St. Johns County for violations of Sections
350.113, 367.121, 367.145 and 367.161, F.S., and Rules 25-30.120 and 2530.110, F.A.C. ......................................................................................................... 2
3**PAA
Docket No. 150151-TL – Petition for approval of implementation of 1+10-digit
dialing for Walnut Hill and Molino, Florida exchanges, by Frontier
Communications of the South, LLC. ...................................................................... 3
4**
Docket No. 150148-EI – Petition for approval to include in base rates the revenue
requirement for the CR3 regulatory asset, by Duke Energy Florida, Inc.
Docket No. 150171-EI – Petition for issuance of nuclear asset-recovery financing
order, by Duke Energy Florida, Inc. d/b/a Duke Energy. ....................................... 4
5**PAA
Docket No. 140174-WU – Application for approval of transfer of Certificate No.
117-W from Crestridge Utility Corporation to Crestridge Utilities, LLC, in Pasco
County. .................................................................................................................... 5
6**PAA
Docket No. 140176-WU – Application for approval of transfer of Certificate No.
116-W from Holiday Gardens Utilities, Inc. to Holiday Gardens Utilities, LLC, in
Pasco County. ......................................................................................................... 7
7**
Docket No. 150113-WS – Application for transfer of majority organizational
control of Orange Blossom Utilities, Inc., holder of Certificate Nos. 639-W and
548-S in Sumter County, from Nancy Steinmetz Roach to Jonathan S. Dean. ...... 9
8**
Docket No. 150159-EI – Petition for approval of tariff revisions to implement
customer relationship management (CRM) project, by Tampa Electric Company.
............................................................................................................................... 10
9**
Docket No. 150160-GU – Petition for approval of tariff revisions to implement
customer relationship management (CRM) project, by Peoples Gas System. ..... 11
10**PAA
Docket No. 150177-EI – Joint petition by Tampa Electric Company, Duke
Energy Florida, and Mosaic Fertilizer, LLC, for approval of intermittent electric
standby power agreement. .................................................................................... 12
11
Docket No. 150178-EI – Petition for approval of tariff rate changes to implement
approved step increase by Tampa Electric Company. .......................................... 13
-i-
Item 1
FILED SEP 03, 2015
DOCUMENT NO. 05517-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
Capital Circle Office Center • 2540 Siiumard Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
DATE:
September 3, 2015
TO:
Office of Commission Clerk (Stauffer)
FROM:
Office ofTelecommunications (C. Williams, Cy^ara)
Office of the General Counsel (S.
Application for Certificate of Authority to Provid: Telecommunications
RE:
Service
9/15/2015 - Consent Agenda - Proposed Agency Action - Interested
AGENDA:
Persons May Participate
None
SPECIAL INSTRUCTIONS:
Please place the following
Applications for Certificate of Authority to Provide
Telecommunications Service on the consent agenda for approval.
CERT.
DOCKET
COMPANY NAME
NO.
NO.
150119-TX
Pro-Net, Inc.
8878
150161-TX
Kuhl Group Inc.
8875
The Commission is vested with jurisdiction in this matter pursuant to Section 364.335, Florida
Statutes. The Certificates of Authority authorize Pro-Net, Inc. and Kuhl Group Inc. to provide
Telecommunications Services in the State of Florida as a Telecommunications Company as
defined by Section 364.02(13), Florida Statutes. Pursuant to Section 364.336, Florida Statutes,
certificate holders must pay a minimum annual Regulatory Assessment Fee if the certificate is
active during any portion of the calendar year. A Regulatory Assessment Fee Return Notice will
be mailed each December to the entity listed above for payment by January 30.
Item 2
FILED SEP 03, 2015
DOCUMENT NO. 05534-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
CA PITAL C IRCLE OFFICE CE TER • 2540 SH UM A RD OAK BOULEVARD
TALLA HASSEE, FLORIDA 32399-0850
-M-E-M -0-R-A-N-D-U -M -
DATE :
September 3, 2015
TO:
OITice of Comm ission Clerk (Stauffer)
FROM:
Office of the General Counsel (Corbari,
Di vision of Accounting and Fi nance (Bulecza-Banks, Fletcher,
Division of Administrative and IT Serv ic~s J~e l cher) k~
Division of Eco nomics (Earnhart) c} S V..JYfi4/
RE :
Docket No. 150022-WU - Initi ation of show cause proceedings agai nst Wildwood
Water Company in St. Johns County fo r violations of Sections 350. 113, 367. 12 1,
367.145 and 367.16 1, F.S., and Rules 25 -30. 120 and 25-30.110, F.A.C.
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AGENDA: 09/ 15/ 15 - Regular Agenda- Interested Persons May Participate
COMMISSIONERS ASSIGNED:
All Commissioners
PREHEARING OFFICER:
Brise
CRITICAL DATES:
None
SPECIAL INSTRUCTIONS :
None
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Case Background
On January 6, 20 15, staff opened the instant docket to initiate a show cause proceeding against
W ild wood Water Company (Wildwood) for apparent violatio ns of Florida Statutes and
Commi ssion rules and regul atio ns in fa iling to submit, o r timely submit, its Annual Reports fo r
the years 2009, 20 I 0, 20 II , 20 12, and 20 13, as well as failing to remit payment of its annual
Regulatory Assessment Fees (RAFs) fo r the years 2009,2010, 20 11 , 20 12,20 13, and 2014.
Docket No. 150022-WU
Date: September 3, 2015
Wildwood is a Class C water utility providing service to approximately 397 residential and
commercial customers in St. Johns County. Wildwood is located in the St. John's River Water
Management District, but outside the water resource caution area. The following information
provides a historical overview of the Commission's activities related to Wildwood.
Wildwood has been in existence since 1979. Between 1985 and 1989, Wildwood was regulated
by the Commission until the Board of County Commissioners of St. Johns County adopted
Resolution Num_ber 89-214, rescinding the Commission's jurisdiction over private water and
wastewater utilities in St. Johns County. On December 20, 1989, the Commission acknowledged
1
the St. Johns County Resolution. In December 2008, the Board of County Commissioners of St.
Johns County passed Ordinance No. 2008-57, which transferred jurisdiction over privatelyowned water and wastewater utilities in St. Johns County to the Commission, effective January
16, 2009. The Commission acknowledged the St. Johns County Ordinance on February 12,
2009. 2
Pursuant to Section 367.171(2)(b), Florida Statutes (F.S.), each utility engaged in the operation
or construction of a system is entitled to receive a grandfather certificate for the area served by
the utility on the day the Chapter becomes applicable to it. In 2010, Wildwood filed an
application with the Commission requesting a grandfather certificate of authority to provide
water service in St. Johns County. The Commission granted Wildwood Water Certificate No.
3
648-W, effective January 16,2009, pursuant to Order No, PSC-10-0367-PAA-WU.
Since coming back under the Commission's jurisdiction in 2009, Wildwood has failed to remit
payment of its RAFs and, with the exception of2014, has failed to timely file its Annual Reports.
Prior to the issuance of the Order granting Wildwood's certificate, Wildwood was advised that
4
its 2009 Annual Report and RAFs were due by March 31, 2010. Wildwood requested and was
5
granted an extension of time, until April 30, 201 0, to file its 2009 Annual Report and RAFs,
which it failed to do. The Commission noted in Order No. PSC-10-0367-PAA-WU, that
Wildwood's Annual Report and RAFs for the period it became subject to the Commission's
jurisdiction (January 16 - December 21, 2009) remained delinquent and that Wildwood was
6
subject to associated penalties and interest for failing to timely file its RAFs and Annual Report.
1
Order No. 22330, issued December 20, 1989, in Docket No. 891162-WS, In re: Request for acknowledgement of
resolution rescinding Florida Public Service Commission jurisdiction over private water and sewer utilities in St.
Johns Countv.
2
Order No. PSC-09-0092-FOF-WS, issued February 12, 2009, in Docket No. 090029-WS, In re: Ordinance by
Board of County Commissioners of St. Johns County relating to regulation of water and wastewater utilities within
the unincorporated areas of St. Johns County.
3
Order No. PSC-10-0367-PAA-WU, issued June 7, 20IO, in Docket No. 100011-WU, In re: Application for
grandfather certificate to operate water utility in St. Johns County by Wildwood Water Company.
4
Id., at p. 2.
5
Id.
6
Id.
-2-
Docket No. 150022-WU
Date: September 3, 2015
Four years after the Commission granted Wildwood its certificate, Wildwood still had not
remitted payment of its 2009 or subsequent years RAFs, nor had it filed its Annual Reports for
2009, 2010, 2011, 2012, and 2013. In May 2014, Commission staff attempted to contact
Wildwood with regard to its delinquent RAFs and Annual Reports. In June 2014, the President
and Owner of Wildwood, Mrs. Diane Mills, contacted Commission staff and requested a
payment plan for resolving its delinquent RAFs. Staff attempted to wotk with Mrs. Mills in
order to resolve Wildwood's delinquent status and bring Wildwood back into compliance. Mrs.
Mills agreed to staffs request that Wildwood submit its Annual Reports and RAF Returns for
the years 2009 through 2013, and make an initial payment toward its delinquent RAFs by June
30, 2014. In exchange for Wildwood submitting a RAF payment, its RAF Returns, and Annual
Reports, staff would continue to assist Wildwood to further resolve its compliance delinquencies
and Wildwood's RAF account would not be sent to collections or an enforcement proceeding.
Despite staffs numerous efforts, Mrs. Mills refused to fully cooperate with staff to resolve
Wildwood's RAF and Annual Report delinquencies. Wildwood never made any payment toward
its delinquent RAF balance. In May 2014, Mrs. Mills dropped off copies of Wildwood's RAF
Returns for the years 201 0, 2011, 2012, and 2013 to the Commission in person. The RAF
Returns Mrs. Mills provided, however, were not signed by a representative of the Utility and
were therefore incomplete. On July 25, 2014, Wildwood submitted its Annual Reports and RAF
Returns for the years 2011, 2012, and 2013, along with signed RAF Returns for 20 11, 2012, and
2013. Although Mrs. Mills submitted signed RAF Returns along with Wildwood's Annual
Reports for 2011,201,2 and 2013, Mrs. Mills refused to submit Wildwood's Annual Reports for
2009 or 2010, a RAF Return for 2009, or a signed RAF Return for 201 0. In addition, Staff
attempted to complete a formal audit of the Utility, however, Mrs. Mills refused to provide any
of Wildwood's billing records to Commission staff.
The Commission notified Wildwood of its non-compliance status numerous times, with no
response. 7 In certified letters, dated October 23, 2014 and November 21,2014, the Commission's
Office of the General Counsel notified Wildwood of its apparent violations of Sections 350.113,
367.145 and 367.161, F.S., and Rules 25-30.120 and 25-30.110, Florida Administrative Code
7
Document No. 00118-15, in Docket No. 150022-WU, Commission Correspondence to Wildwood Water
Company regarding apparent violations of Sections 350.113,367.145, and 367.161, F.S., and Rules 25-30.120 and
25-30.110, F.A.C., attached to Staffs Request to Establish Docket Initiation of show cause proceedings against
Wildwood Water Company dated January 6, 2015:
- Letter from Office of the General Counsel, dated April 20, 2011, re: notification of failure to submit 20 I 0
RAFs and demand for payment within 15 days.
- Letter from Office of the General Counsel, dated April 23, 2012, re: notification of failure to submit 20 II
RAFs and demand for payment within 15 days.
- Letter from Office of the General Counsel, dated April 22, 2013, re: notification of failure to submit 2012
RAFs and demand for payment within 15 days.
- Letter from the Office of General Counsel, dated April 21, 2014, re: notification of failure to submit 2013
RAFs and demand for payment within 15 days.
- Letter dated October 23,2014, re: apparent violations of sections 350.113,367.145, and 367.161, F.S., and
Rules 25-30.120 and 25-30.110, F.A.C., and possible initiation of show cause proceedings.
- Letter dated November 21, 2014, re: re: apparent violations of sections 350.113, 367.145, and 367.161, f;S.,
and Rules 25-30.120 and 25-30.110, F.A.C., and possible initiation of show cause proceedings.
- 3-
Docket No. 150022-WU
Date: September 3, 2015
8
(F.A.C.), and demanded Wildwood submit its delinquent RAFs and Annual Reports. Both
notices advised Wildwood that, should it fail to remit payment of its 2009-2013 RAFs, plus
penalties and interest, to remit payment of penalties for its late and unfiled Annual Reports,
and/or to file its Annual Reports for 2009 and 2010, Commission staff would open a docket to
initiate a show cause proceeding. In addition, the notices advised Wildwood that, should it be
found to have violated Commission rules, it could be subject to additional penalties of up to
9
$5,000 per day, pursuant to Section 367.161, F.S. Wildwood did not respond to any of staffs
notices, nor did it remit any RAF payments, file its outstanding annual reports, or attempt to
contact Commission staff.
After receiving no response from Wildwood, the Commission's Office of General Counsel
established the instant docket and notified Wildwood that a show cause proceeding had been
10
opened for its apparent violations of Commission rules and statutes. The notice of show cause
proceeding also advised Wildwood that it was required to submit its 2014 Annual Report and
RAFs by March 31, 2015} 1
In March 2015, staff counsel was contacted by Mr. Deterding, who informed staff that he had
been retained by Mr. Gregory Mills, the son of Mrs. Mills and the Vice-President of Wildwood,
to represent Wildwood in this matter. Mr. Deterding advised staff that, until recently, Mr. Mills
oversaw the plant operation of the Utility, while his mother, Mrs. Mills, handled the
administrative aspects of the Utility's operations. Wildwood Counsel advised staff that Mr. Mills
was just beginning to assume the administrative duties from his mother due to Mrs. Mills'
deteriorating health and that, until Staff initiated the show cause proceeding, Mr. Mills was
unaware of Wildwood's compliance issues with the Commission. Counsel for Wildwood then
requested that Wildwood be given an extension of time to file its 2014 RAF Return and Annual
Report.
On March 26, 2015, Wildwood was granted an extension, until April 30, 2015, to file its 2014
Annual Report} 2 On March 31, 2015, Wildwood filed its Annual Reports for 2009 and 2010,
and its RAF Return for 2014. On April 3, 2015, Wildwood filed its RAF Returns for 2009 and
2010. On April 30,2015, Wildwood requested an additional extension of time, until May 31,
2015, to file its 2014 Annual Report, which was granted. On May 29, 2015, Wildwood filed its
2014 Annual Report, along with a revised RAF Return for 2014.
8
Document No. 05990-14, in .Docket No. 140000, Staffs demand for payment of past due RAFs and Annual
Reports, dated October 23, 2014; and Document No. 06425-14, in Docket No. 140000, Staffs demand for payment
ofpast due RAFs and Annual Reports, dated November21, 2014.
9
Id.
10
See. Document 00158-15, in Docket No. 150022-WU, Letter notifying utility of establishment of a docket to
initiate show cause proceeding, dated January 8, 2015; and Document No. 00597-15, in Docket No.l50022-WU,
Certified Return Receipt signed by Gerald Mills on January 26, 2015, evidencing receipt by Wildwood of staffs
·
certified letter of January 8, 2015.
II ld.
12
Wildwood did not file an extension of time to file its 2014 RAF Return because the deadline for requesting an
extension had passed. Rule 25-30.120(6)(a), F.A.C., provides that requests for extensions must be received "at least
2 weeks before the due date."
-4-
Docket No. 150022-WU
Date: September 3, 2015
Settlement Discussions
On May 7, 2015, staff participated in an informal meeting with Wildwood to discuss a possible
settlement. Although a settlement was not reached on that date, the parties agreed to continue
settlement discussions, during which staff and Wildwood counsel exchanged drafts of a proposed
settlement agreement. On August 18, 2015, Wildwood filed a letter requesting the Commission
approve its proposed Settlement Agreement, which is attached hereto as Attachment "A."
As of September 15, 2015, the amounts owed by Wildwood for delinquent RAFs, plus statutory
penalties and interest, are as follows:
WILDWOOD OUTSTANDING RAF AMOUNTS
YEAR
REVENUES
2014
2013
2012
2011
2010
2009
$177,341.00
$172,676.00
$161,630.00
$162,446.00
$147,232.00
$161,931.00
$983,256.00
TOTALS
RAFS
(4.5%)
PENALTY
(25%)
$7,980.34
$7,770.42
$7,273.35
$7,310.07
$6,625.44
$7,286.90
$44,246.52
INTEREST
(1%)
(As OF 09/15/15)
$1,995.09
$1,942.61
$1,818.34
$1,827.52
$1,656.36
$1,821.73
$11,061.65
PAYMENTS
$478.92
$1,398.68
$2,182.01
$3,143.33
$3,643.99
$4,882.22
$15,729.15
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
TOTALS
DUE
(AS OF 09/15/15)
$10,454.35
$11,111.71
$11,273.70
$12,280.92
$11,925.79
$13,990.85
$71,037.32
As of September 15, 2015, the penalty amounts owed by Wildwood for delinquent Annual
Reports, are as follows:
WILDWOOD ANNUAL REPORT PENALTY AMOUNTS
YEAR
2014
2013
2012
2011
2010
2009
DATE DUE
05/31/2015
03/31/2014
03/31/2013
03/31/2012
04/30/2011
06/01/2010
DATE FILED
DAYS LATE
(As OF 09/15/15)
0
116
481
846
1,431
1,764
4,638
05/29/15
07/25/2014
07/25/2014
07/25/2014
03/3112015
03/3112015
TOTALS
PENALTY
($3PERDAY)
$0.00
$348.00
$1,443.00
$2,538.00
$4,293.00
$5,292.00
$13,914.00
TOTAL
PENALTY
(As OF 09/15/15)
$0.00
$348.00
$1,443.00
$2,538.00
$4,293.00
$5,292.00
$13,914.00
The Commission has jurisdiction pursuant to Sections 120.57, 350.113, 367.121, 367.145,
367.161, F.S., and Rules 25-30.110 and 25-30.120, F.A.C.
-5-
Issue 1
Docket No. 150022-WU
Date: September 3, 2015
Discussion of Issues
Issue 1: Should the Commission accept the Settlement Agreement proposed by Wildwood
Water Company, to resolve the apparent violations of Sections 350.113, 367.121, 367.145 and
367.161, F.S., and Rules 25-30.120 and 25-30.110, F.A.C.?
Recommendation: Yes. The Commission should accept the Settlement Agreement proposed
by Wildwood Water Company, to resolve the apparent violations of Sections 350.113, 367.121,
367.145 and 367.161, F.S., and Rules 25-30.120 and 25-30.110, F.A.C., and to pay its delinquent
Regulatory Assessment Fees, plus statutory penalties and interest, for the years 2009, 2010,
2011, 2012, 2013, and 2014, as well as pay a $2,500 penalty for its delinquent Annual Reports
for the years 2009, 2010, 2011, 2012, and 2013. The Settlement Agreement provides a
reasonable resolution of the outstanding issues in the docket, appears to be in the public interest,
and promotes administrative efficiency. (Corbari, Ames, Earnhart)
Staff Analysis:
On August 18, 2015, Wildwood filed a letter with a proposed Settlement Agreement, in an effort
to fully resolve its apparent violations of Sections 350.113, 367.121, 367.145 and 367.161, F.S.,
and Rules 25-30.120 and 25-30.110, F.A.C. A copy of the Settlement Agreement is attached
hereto as Attachment "A."
The goal of any show cause proceeding is to ensure compliance with Florida law and the
Commission's rules and orders. Staff believes the Settlement Agreement accomplishes this goal,
as well as provides a remedy for apparent past violations, and, therefore, recommends that the
Commission approve the proposed Settlement Agreement, in full, as attached hereto. Highlights
of specific provisions of the settlement offer are as follows:
•
Wildwood acknowledges its obligation, pursuant to Sections 367.145 and 350.113, F.S.,
and Rule 25-30.120, F.A.C., to remit payment of its RAFs, plus statutory penalties and
interest, for the years 2009, 2010,2011, 2012, 2013, and 2014.
•
Wildwood acknowledges its obligation, pursuant to Section 367.121, F.S., and Rule 2530.110, F .A. C., to remit payment for penalties associated with the delinquent filing of its
Annual Reports for the years 2009,2010, 2011, 2012, and 2013.
•
Beginning in October 2015, Wildwood will begin making monthly payments, by the
twentieth of each month, in the amount of $1,000, in an effort to pay off the balance of its
2011, 2012, 2013 and 2014 RAFs, as well as penalties and interest for 2009, 2010, 2011,
2012, 2013, and 2014.
•
Beginning in October 2015, Wildwood will begin making monthly payments, by the
twentieth of each month, in the amount of $250, in an effort to pay off the $2,500 penalty
for the delinquent filing of its Annual Reports for the years 2009, 201 0, 2011, 2012, and
2013.
- 6-
Issue 1
Docket No. 150022-WU
Date: September 3, 2015
•
Wildwood will submit payment of its 2015 and future RAFs to the Commission, timely
and in full.
•
Wildwood will submit its 2015 and all future Annual Reports to the Commission in a
timely manner.
•
Wildwood agrees to waive its right to an administrative formal hearing pursuant to
Sections 120.569 and 120.57, F.S.
•
In consideration of Wildwood's complete and timely performance of all the obligations
agreed to in this Settlement Agreement, the Commission conditionally agrees to:
o reduce the amount of the penalties owed by Wildwood for failing to timely remit
its Annual Reports for the years 2009, 2010, 2011, 2012, and 2013 to $2,500
($500 per year), as set out in Exhibit B of the Settlement Agreement attached
hereto; and
o waive its right to seek civil remedies against Wildwood for failing to remit
payment of its RAFs, penalties and interest, and failing to timely file its Annual
Reports provided that Wildwood complies with all of the terms of this Settlement
Agreement and any final Commission order approving the agreement.
•
Wildwood will notify the Commission prior to any sale, conveyance, or abandonment of
the utility or the property it is located upon, and/or the initiation of any bankruptcy
proceedings involving the utility or its property. In addition, Wildwood will provide a
copy of the Settlement Agreement and Commission order approving the agreement to any
purchaser, operator, or person assuming control of Wildwood and/or any court presiding
over any abandonment or bankruptcy proceeding involving Wildwood.
•
The agreement does not prevent a Party from filing suit to specifically enforce any of the
terms of the agreement; and the Commission reserves the right to initiate appropriate
legal action to address any violations of Commission rules or statutes that are not
specifically related to the agreement.
•
Should Wildwood fail to comply with any of the terms of the proposed Settlement
Agreement, such failure would be considered a breach of the agreement and
automatically accelerate the balance of any unpaid RAFs, penalties and interest, which
would then become immediately due, and void the Annual Report penalty reduction,
reinstating the original penalty amount of $13,914, the unpaid balance of which will
become immediately due. In addition, the Commission would seek to enforce the terms
of the Settlement Agreement and pursue all reasonable means necessary to collect the
amounts owed, including, but not limited to, initiating an action in circuit court and
placing a lien on the real and personal property of Wildwood.
- 7-
Issue 1
Docket No. 150022-WU
Date: September 3, 2015
Staff believes that, taken in its entirety, the Settlement Agreement provides a reasonable
resolution of the outstanding issues in Docket No. 150022-WU. Staff further believes that the
Commission's approval of the Settlement Agreement would be in the public interest, as it
provides for future compliance with Florida Statutes and Commission Rules. Finally, staff
believes that Commission approval of the Settlement Agreement will promote administrative
efficiency and will avoid the time and expense of a hearing. Therefore, Staff recommends the
Commission approve the proposed Settlement Agreement submitted by Wildwood.
-8-
Issue 2
Docket No. 150022-WU
Date: September~' 2015
Issue 2: Should this Docket be closed?
Recommendation: No. If Issue 1 is approved, the Settlement Agreement would resolve all
matters in Docket No. 150022-WU, in accordance with Section 120.57(4), F.S. Staff
recommends the docket remain open to process the settlement payments and to monitor ongoing
compliance with the terms of this Settlement Agreement. Once all the terms of the Settlement
Agreement and all outstanding amounts owed have been satisfied, the docket may be
administratively closed. Should Wildwood fail to comply with any of the terms of the proposed
Settlement Agreement, staff requests the Commission authorize the Office of the General
Counsel to pursue all reasonable means necessary to enforce the terms of the Settlement
Agreement, including any Commission Order approving same, and to collect the amounts owed
by Wildwood, pursuant to Sections 120.69 and 367.121(1)(g) and G), F.S., including, but not
limited to, initiating an action in circuit court and seeking the placement of a lien on the real and
personal property of Wildwood. (Corbari, Ames)
Staff Analysis: If Issue 1 is approved, the Settlement Agreement would resolve all matters in
Docket No. 150022-WU, in accordance with Section 120.57(4), F.S. Staff recommends the
docket remain open to process the settlement payments and to monitor ongoing compliance with
the terms of this Settlement Agreement. Once all the terms of the Settlement Agreement and all
outstanding amounts owed have been satisfied, the docket may be administratively closed.
Should Wildwood fail to comply with any of the terms of the proposed Settlement Agreement,
staff requests the Commission authorize the Office of the General Counsel to pursue all
reasonable means necessary to enforce the terms of the Settlement Agreement, including any
Commission Order approving same, and to collect the amounts owed by Wildwood, pursuant to
Sections 120.69 and 367.121(1)(g) and G), F.S., including, but not limited to, initiating an action
in circuit court and seeking the placement of a lien on the real and personal property of
Wildwood.
- 9-
Attachment A
Docket No. 150022-WU
Date: September 3, 20 15
FILED AUG 18. 2015
DOCUM ENT NO. 05154-15
FPSC - COMMISSION CLERK
25.Jli BI.J\IRSTO:-;F. 1'1 ' F.S DR!\1!
SUNDSTROM
& MINDLIN, LLP
Ti\UAIIASSEE , Fl.QRJ[)A 32301
J'H ONE (R'\0) !177-(,'\'\'\
FAX (ll'iO) 6'\(H02')
August 18, ::!015
VIA
E~1A i l.
Carlotta Stauffer. Clerk
Florida Public Ser.ice Commission
2540 Shumard Oak Boulevard
Tallahassee, F1orida 32;~99-0850
Re:
Wildwood Water Company, Inc.
Docket No. 150022-\'\'U; Initiation of Show Cause Proceeding Against Wildwood
Water Company in St. Johns County for Violations of Sections 350.113, 367.121,
367.145, and 367.161, Florida Statutes, and Rules 25-30.120 and 25-30. 110,
Florida Admini~trativc Code
Dear M.s. Stauffer.
J il m attaching hereto an offer of settlement presented by me on behnlf of
Wildwood Water Company for sett lement of the issues outlined in the above-referenced
docket. We have worked \\itlllhe staff in order to reach this settlement and arc hopeful
that \\ith t he fully executed Settlement Agreement this matter e<tn come to an
c>rpcditious close.
If you have any quest ions or need any fu rther information from me, please do not
hesitate to contact me.
;?:
Si n~.eh"
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(_ ....- _. F. Marshall Deterding Of Counsel
FMDjbrf
Enclosure
cc:
Mr. G. Gregory Mills, Vi<:e President
Kelley Corbari, Esquire (Office of Gener<~l Counsel)
Leslie Ames, Esquire (Office of General Counsel)
Cheryl Bulec.za-Banks (Division of Accounting & Finance)
Ja mes Polk (Division of Accounting & Finance)
Stephen Fletcher (Di\'lsion of Accoun ting & Finance)
Karen Belcher (Administration)
Toni Earnhan (Di\ision of Economics)
Lynn Deamer (Office of Auditing & Performance Analysis)
- I0 -
/
Attachment A
Docket No. 150022-WU
Date: September 3, 2015
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Initiation of show cause proceedings against
Wildwood Water Company in St. Johns County for
violations of Sec Lions 350.113. 367.121, 367.145
and 367.161, Florida Statutes, and Rules 25-30.120
and 25-30.110, Florida Adm.inistrative Code
SETILI~MENT
DOCKET NO. 150022-WU
A(;REEMENT
Pursuant to Section 120.57(4), Florida Statutes (F.S.), Wildwood \Vater Company (Wildwood)
hereby tiles this Settlement Agreement to effect an informal disposition and binding resolution of any
and all matters and issues that were, or might have been, addressed by the Florida Public Service
Commission (Commission) in Docket No. 150022-\VU. This Settlement Agreement is intended to
avoid the
time~
expense and uncertainty associated with adversaria] litigation. The tenns of this
Settlement Agreement are as follows:
1.
Wildwood acknowledges its
obligation~
pursuant to Sections 367.145 and 350.113. F.S., and
Rule 25-30.120, Florida Administrative Code (F.A.C.), to remit payment of iL'i Regulatory
Assessment Fees (RAFs), plus statutory penalties and interest, for the years 2009, 20 I0, 2011.
2012. 2013. and 2014, as set out in Exhibit A attached hereto.
2.
Wildwood acknowledges its obligation. pursuant to Section 367.121, F.S.t and Rule 25-30.110.
f.A.C., to remit payment for penalties associated with iLs delinquent Annual Reports for the
years 2009. 2010, 2011,2012, and 2013, as set oul in Exhibit B attached hereto.
3.
In cDnsideration of Wildwood s complete and timely perfonnance of all Lhe obligations agreed
1
to in this Settlement Agreement~ the Commission conditionally agrees to:
a. reduce the amount of the penalties owed by \Vildwood for failing to timely remit its
Annual Reports for the years 2009, 2010, 2011, 2012, and 2013 to $2,500.00 ($500.00
per year). as set out in Exhibit B attached hereto; and
- 11 -
Attachment A
Docket No. 150022-WU
Date: September 3, 2015
Docket No. 150022-\VU
\Vildwood Settlement Agreement
b. waive its right to seek civil remedies against Wildwood for:
(i) tailing to remit payment of IW:-s, penalties and interest for the years 2009, 2010,
2011.2012, 2013, and 2014, pursuant to Sections 367.145 and 350.113, F.S., and
Rule 25-30.120, F.A.C.; and
(ii) failing to timely file Annual Rcpons and to remit penalties related thereto filr the
years 2009, 2010, 2011, 2012, and 2013, pursuant to Section 367.121, F.S., and
Rule 25-30.110, F.A.C.
The penalty reduction and/or civil action waiver is c.onditioncd upon \VHdwood's complete
compliance with all of the terms of this Settlement Agreement nnd any final Commission order
approving this agreement.
4.
In lieu of the Commission pursuing all reasonable means necessary to collect the amuunts owed
by Wildwood. including, but not limited to, initiating an action in circuit court, Wildwood will
pertbnn the following:
a.
Submit payment to the Commission in the amount of $13,912.34, by September 20,
2015. satisfying the principal balance of the RAFs owed by Wildwood for the years
2009 and 20 I 0:
b.
Submit a monthly payment of ~I ,000.00 tor outstanding RAFs. penalties and interest.
to the Commission, by the 20111 of every month, beginning on October 15, 2015, and
continuing until the balance of any outstanding RAFs, penalties and interest has been
satisfied;
c.
Submit a monthly p~~mcnt of $250.00 to the Commission for delinquent Annual Report
penalties • by the 20 1 of every month. beginning on October 15, 2015, and continuing
until the total Annual Report penalty of $2,500.00 has been satisfied;
d.
Submit payment of its 2015 and all future RAFs to the Commission, timely and in full;
and
c.
Submit its 2015 and all future Annual Reports to the Commission in a timely manner.
2
- 12-
Attachment A
Docket No. 150022-WU
Date: September 3, 2015
Docket No. 150022-WU
5.
Wi1dwood Settlement Agreement
The Commission shall apply all payments made by \Vildwood under this Settlement Agreement
in the following manner:
6.
a.
To the principal balance of any unpaid year's RAFs, beginning with the oLdest year to
the most recent year. until the principal balance of any year's unpaid RAFs has been
satisfied; and
b.
To the penalty and interest balance assessed to L-ach year of delinquent RAFs, beginning
with the oldest year to the most recent year, until the penalty and interest balance of
each year's delinquent RAfs has been satisJicd.
Failure by Wildwood (i) to submit its initial pa)'mcnt of$13,912.34 payment by September 20,
2015; (ii) to timely submit two (2) consecutive $1,000.00 RAF installment payments outlined
above; (iii) to timely submit two (2) consecutive $250.00 Annual Report installment payments
outlined above; or (iv) to abide by any of the other tenns contained herein, shall be considered
a breach of this Settlement Agreement.
7.
Failure to pcrfonn any of the terms contained in this Settlement Agreement or a breach of this
Settlement Agreement, shall automatically (i) accelerate the balance of any unpaid
RAFs~
penalties and interest, which v.-ill then become immediately due: and (ii) void the Annual
Report penalty reduction, reinstating lhc original penalty amount of $13.914.00, the unpaid
balance of which will be immediately due.
8.
Additional Payment Terms:
a.
All payments shall be made payable to the "Florida Public Service Commission,"
include Docltet No. 150022-WU on the memo line. and be sent to "F1orida Public
Service Commission. 2540 Shumard Oak Boulevard, Tallahassee, FL 32399-0850,
ATTENTION: Fiscal Services;"
b.
Payment is considered '"timely" if properly addressed, mailed with sufficient postage
and postmarked no later than the due date;
c.
Pa)nlent is considered Hpaid'' on the date it is received and logged in by the
Commission!s Division of Administrative and Jn.fonnation Technology Services in
Tallahassee, Florida, or on the date the payment is postmarked by the United States
Postal Service;
3
- 13 -
Attachment A
Docket No. 150022-WU
Date: September 3, 2015
Wildwood Settlement Agreement
Docket No. 150022-WU
8.
d.
Payment that is returned by a financial institution f.br insufficient funds, or any other
reason, is a failure to submit timely payment. Pursuant to Section 21 5.34(2). a service
fee of $15.00 or five percent (5%) of the amount of the payment returne~ whichever is
greater. shall be . assessed to any payment returned by a financial institution for
insufficient funds, or for any other reason. Two (2) returned payments shall be
considered a breach of this Settlement Agreement, automatically accelerating the
balance of any unpaid RAFs~ penalties and interest, which will then become
immediately due; and
e.
There shall be no prepayment penalty for early payment or any of the amounl'i agreed
upon herein.
In the event
Wildwood~
including the property upon which Wildwood is located, becomes the
subject of a sale, conveyance, abandonment, or bankruptcy and all of the terms of this
Settlement Agreement have not been fully satisfied, Wildwood shall:
a.
b.
Notify the Commission at least sixty (60) days prior to the sale, conveyance,
abandonment or initiating bankruptcy proceedings;
Provide the Commission with the name and address of the
purchaser~
operator, or person
assuming control of Wildwood;
9.
c.
Provide a copy of this Settlement Agreement and final Commission order approving the
Settlement Agreement, as \\o'ell as any attachments to same~ to any purchaser~ operator, or
·
person assuming control of \Vildwood; and
d.
17ovidc a copy of this Settlement Agreement and final Commission order approving the
Settlement Agreement, as well as any attachments to same, to the court presiding over
any abandonment or bankruptcy proceeding involving Wildwood.
The submission of this Settlement Agreement by \Vildwood is in the nature of an offer to settle.
This Settlement Agreement is contingent on the Commission accepting the entire Settlement
Agreement. Consequently, if this Settlement Agreement is not accepted and approved without
moditication, then the settlement proposal is rejected and the Settlement Agreement shall be
considered null and void and of no further force or eflect.
I0.
This Sclllcment Agreement will take effect the day it is approved by the Commission. In
addition, \Vildwood understands that the Commission's decision wil1 be rctl(."Ct<.-d in a final
order.
4
- 14-
Attachment A
Docket No. 150022-WU
Date: September 3,2015
Wildwood Settlement Agreement
Docket No. 150022-WU
11.
Neither Party to this Settlement Agreement will request, support, or seek to impose a change in
the application of any provision of this Settlement Agreement. Provided the Commission
approves the Settlement Agreement, Wildwood waives it right to request further administrative
or judicial proceedings conceming any of the matters, which were, or might have been,
addressed by the Commission in resolving Docket No. 150022- WU~ except proceedings to
enforce this Settlement Agreement. This waiver of the right to further administrative or judicial
proceedings shall include, but not be limited to (i) a petition for a fonnal proceeding in the form
provided by Rule 28-106.201 or 28-106.2015. f.A.C.; (ii) a motion for reconsideration of the
decision in this matter in the fonn prescribed by Rule 25-22.060, F.A.C.; (iii) or a notice of
appeal to initiate judicial re\>iew by the Florida First District Court of Appeal pursuant to Fla.
R. App. P. 9.1 10. in the form specified in Fla. R. App. P. 9.900(a).
12.
Nothing in this Settlement Agreement shall prevent the Parties from tiling an action to
specifically enforce any of the tcm1s of this Settlement Agreement. The Commission reserves
the right to initiate appropriate legal action to address any violations of rules or statutes
administered by the Commission that are not specifically re1at~"Ci to or resolved by this
Settlement Agreement.
13.
In consideration for entering into this agreement, Wildwood acknowledges, agrees, and waives
its right to an administrative formal hearing pursuant to Sections 120.569 and 120.57. F.S.
Wildwood further acknowledges, agrees. and waives its right to appeal the tina) order on this
matter.
14.
This Settlement Agreement resolves all matters in Docket No. 150022-\VU in accordance with
Section 120.57(4), F.S. Docket No. 150022-WU will continue to remain open until all the
terms of this Settlement Agreement have been satisfied by Wildwood.
5
- 15-
Attachment A
Docket No. 150022-WU
Date: September 3, 2015
REDACTED
Wildwood Settlement Agreement
Docket No. 150022-WU
15.
This Settlement Agreement constitutes a single, integrated written contract expressing the
entire agreement between the Partie.'i and superseding all other agreements, represe~ations, and
undel'standings on the subject matter herein. There is no other
agreemen~
oral or
writtc~
expressed or implied, between the Parties with respect to the subject-matter herein, except this
Settlement Agreement.
Signed this _!1__ day of.
t14j usf
WITNF..SSES:
BY:
, 2015.
G~!~ ~:~esldent
Wn.owooo WATER Co.
610 Fairway Drive, #206
St. Augustine, FL 32084
<~i~Nrun~~---------------------
Telephone: (904) 829-3400
(Print Name)__
I HEREBY CERTlFY
authorized to
Email:
appeared before me, an officer duly
that on this date ~~~~in;~~~-i:~~~~:a~~
me and/or who has produced a valid
who
~
Driver's Liceust
information is true
purposes expressed therein.
Sworn to und subscribed before me this
to
as identification, and who swears and affirms the enclosed
her knowledge and is the person that executed U1is lt.."lter for the
lrfth day of tlt-~vst, 2015.
No&ary Public. State of Florida
(typed. printed, or stamped)
My Commission Expires:
6
- 16-
9~1
Attachment A
Docket No. 150022-WU
Date: September 3, 20 15
Settle ment Agreement - Ex hibit A
Docket 'o. 150022-\VU
WILDWOOD WATER COMPANY (wu937)
RAFs. P ENALTY & INTEREST OWED
REVENUES
YEAR
2014
2013
I
r
'
RAFs
II
(4.5% )
$177,341.00 I
$7,980.34
l
$7,770.42
$172,676.00
1-
-
$7,273.35
I
·
P ENALTY
(25% )
$10,454.35
$11,111.71
-t-
$0.00
$1,818.34
$2,182.0 1
$0.00
$1,827.52
$3,143.33
2011
S162.146.oo
I
$7,310.07
2010
$147,232.00 I
$6,625.44
I
$1,656.36
2009
$ 161,93 1.00
$7.286.90 I
$44,24 6.52
---
(As OF 9/15/1 5)
so.oo
$1 ,398.68 !
$161,630.00
$983,256.00
-
$478.92
$1,942.61
2012
T OTALS
DUE
(TIIIW 9/15/15)
$1,995.09
TOTAL
PAYMENTS
INTEREST
(1%)
.
$11,273.70
$0.00
$12,280.92
$3,643.99
$0.00
$11,925.79
$1,821.73
$4,882.22
SO.OO
$11,061.65
$15,729.15
-
~
- 17 -
1
I
$0.00 '
$ 13,990.85
~7t,037.3Z
Attachment A
Docket No. 150022- WU
Date: September 3, 2015
Settlement Agreement - Exhibit B
Docket ~o . t 50022-W
WILDWOOD WATER COMPANY ( wu9 37)
ANNUAL REPORT PENALTI ES
I
DAYS LATE
PENALTY
(ASOf 9/15/15 )
($3 PER 01\Y)
l
I
I
(ASOf 9 / 15/15)
.'
2014
I
2013
I
I
2012
!
DATE FILED
DATE DUE
YEAR
2011
t
I
-··
05/3 1/2015*""1< I 05/29/15.
07/25/2011
03/31/20 14
03/31/2013
03/31/2012
I
I
07/ 25/20 14
07/25/2014
0
11 6
I
ssoo.oo'
$500.00
846
$2,s3a.oo j
$500.00
$4,293.00 :
..,
$5,292.00 :
03/31/20 15
2009
06/01 /2 01 0**
03/ 31/2 015
1,764
TOTALS
----------
4,638
- 18 -
1
1
04/30/2011 **
_.. Utility Granted Extens ion to File Annu.-.1 Report
s348.oo
$0.00
$1,443.oo
2010
I
1
REDUCTION
481
1,43 1
----------
$o.oo
PENALTY
-I
-,
$13,914.00
$500.00
$500.00
$2,SOO.OQ
-
Item 3
FILED SEP 03, 2015
DOCUMENT NO. 05523-15
FPSC - COMMISSION CLERK
State of Florida
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-
DATE:
September 3,2015
TO:
Office of Commission Clerk (Stauffer)
FROM:
Office of Telecommunications (Beard, Casey)
Office of the General Counsel (Murphy) Cai
RE:
Docket No. 150151-TL - Petition for approval of Vplementation of 1+10-digit
dialing for Walnut Hill and Molino, Florida exchanges, by Frontier
Communications of the South, LLC.
AGENDA: 09/15/15 - Regular Agenda - Proposed Agency Action - Interested Persons May
Participate
COMMISSIONERS ASSIGNED:
All Commissioners
PREHEARING OFFICER:
Brown
CRITICAL DATES:
None
SPECIAL INSTRUCTIONS:
None
Case Background
On May 26, 2015, Frontier Communications of the South, LLC. (Frontier) filed a Petition for
Approval of Mandatory 1+10 Digit Dialing for the Walnut Hill and Molino Exchanges. Frontier
is
a
Florida
Public
Service
Commission
(Commission)
certificated
local
exchange
telecommunications company which serves the Walnut Hill and Molino Exchanges in Escambia
County.
On June 10, 2015, staff sent a data request to Frontier seeking additional information on
Frontier's proposal. Frontier provided responses to the data request on June 25, 2015.
On August 5, 2015, staff sent an e-mail Notice to all potentially affected communication carriers
in the Frontier service area. The Notice described Frontier's proposal, provided a link to the
Docket No. 150151-TL
Date: September 3, 2015
proposal on the Commission website, and advised that any written comments should be
submitted to the Commission by August 14, 2015. In addition, on August 6, 2015, a Florida
Administrative Register (FAR) Notice was published seeking information on how Frontier's
dialing proposal may affect other Florida communication carriers and customers, if at all. The
FAR notice also stated that written comments should be submitted to the Commission by August
14,2015.
On August 14, 2015, BellSouth Telecommunications, LLC d^/a AT&T Florida (AT&T), filed
comments addressing Frontier's proposed dialing pattern change. On August 21, 2015, Frontier
filed a letter amending its original Petition to request mandatory 10-digit dialing instead of
mandatory 1+10 digit dialing.
The Commission has jurisdictionto address these issues pursuantto Section 364.16(7), F.S., and
47 C.F.R, §52.19.
-2-
Docket No. 150151-XL
Date: September 3, 2015
Discussion of Issues
Issue 1: Should the Commission approve 10-digit Mandatory Dialing for the Walnut Hill and
Molino exchanges?
Recommendation: Yes, staff recommends that the Commission approve 10-digit Mandatory
Dialing for the Walnut Hill and Molino exchanges. (Beard, Casey)
Staff Analysis: Frontier currently serves certain exchanges in northwest Florida, including the
Molino exchange, which is in Escambia County, as well as the Walnut Hill exchange, which is
just north of the Molino exchange.
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PENSACOLA LATA
At present, both Pensacola, Florida and McCullough, Alabama are included in the local calling
area for Frontier's customers in the Walnut Hill, Florida exchange. As such, customers in the
Walnut Hill exchange utilize 7-digit dialing when making calls to both Pensacola and
McCullough.
North American Numbering Plan' numbers are ten-digit numbers consisting of a three-digit
Numbering Plan Area (NPA) code, commonly called an area code, followed by a seven-digit
local number. The format is usually represented as:
NXX-NXX-XXXX
' The North American Numbering Plan (NANP) is an integrated telephone numbering plan serving 20 North
American countries that share its resources. AT&T developed the North American Numbering Plan in 1947 to
simplify and facilitate direct dialing of long distance calls. Implementation of the plan began in 1951.
Docket No. 150151-TL
Issue 1
Date: September 3,2015
where N is any digit from 2 through 9 and X is any digit from 0 through 9.
Frontier has learned that a wireless communication carrier recently opened the codes 251-261 in
McCullough, Alabama and 850-261 in Pensacola, Florida. Frontier believes that when the
wireless commimication carrier actually begins offering service, 261 numbers in either the 850
area code or the 251 area code, calls from Frontier customers in Walnut Hill may not properly
translate.
As an example, a customer in Walnut Hill, FL (850-327) may attempt to reach a business in
McCullough, AL by dialing a 7-digit number as the customer has in the past. If the business has
been assigned a number, such as 261-1234, that call to the business in McCullough may not
complete, or it may be sent to a potentially identical number in Pensacola, FL, because 261-1234
also belongs to a customer in Pensacola, FL. Since Walnut Hill currently has 7-digit dialing into
both McCullough and Pensacola, this is a very likely scenario due to the wireless communication
carrier opening 261 number blocks in both areas. The same would be true if a customer in
Walnut Hill (850-327) is contacting a friend or family member in Pensacola, FL and dials 2617890. Because Pensacola is included in the customer's local calling area, along with
McCullough, AL, the call may not be completed or may be switched to McCullough, AL, to a
customer with that number. If, however, the customer were required to also dial the area code
when placing a call, the call would properly translate to the appropriate switch and ultimate
destination.
Frontier anticipates imminent problems with call routing in this area, as well as associated
customer confusion and frustration. Therefore, Frontier asks in its Amended Petition to
Implement 10-digit Mandatory Dialing in the Walnut Hill exchange. Because of the close
proximity and community of interest between Molino and Walnut Hill, Frontier anticipates that
applying the dialing requirement to both exchanges will reduce confusion that could otherwise
arise because of notifications to just one of these exchanges. Customers in the Walnut Hill and
Molino exchanges would not incur any change in calling rates.
Frontier proposes to provide customer awareness, notificationand education by following similar
requirements as with an area code split or overlay. The proposed notification would include, but
not be limited to, the following:
• Newspaper release advising of the upcoming requirement
• Bill Inserts or direct mail to all existing customers in Walnut Hill and Molino,
Florida
• 30-day permissive period before mandatory 1 + 1 0-digit dialing
• At end of the permissive period, customers will be routed to a recording stating
they must dial a "1 +the area code" when making local calls outside the state of
Florida.
The Commission anticipated potential dialing problems in this area during the area code 904
relief addressed in Docket No. 961153-TL. By Order No. PSC-97-0138-FOF-TL, issued
February 10,1997, the Commission stated the following:
-4-
Docket No. 150151 -TL
Date: September 3,2015
Issue 1
We have considered whether there would be a need to change interNPA dialing
patterns. If the newNPA code results in routes with interNPA seven-digit dialing,
a change to ten-digit dialing may be necessary on those routes.
On August 14, 2015, BellSouth Telecommunications, LLC d/b/a AT&T Florida (AT&T), filed
conmients addressing Frontier's proposed dialing pattern change. AT&T stated that it is unaware
of any technical issues with implementing 1+10-digit dialing for inter-NPA calling from these
exchanges. However, AT&T noted that implementation of 1+10-digit dialing is inconsistent with
the Commission's previously established dialing plan developed by industry and the
Conmiission. Historically, in the state of Florida, 1+10 digit dialing has been earmarked to
indicate to consumers they are making a toll call. By Order No. PSC-96-0558-FOF-TP, issued
April 25,1996, in Docket No. 960090-TP, the Conmiissionset the following dialing patterns,
Intra Exchange Local
10-digits
Inter and Intra NPA EAS
10-digits
Inter and Intra NPA ECS or alternative toll plan
1 + 10 digits
Inter and Intra NPA toll
1 + 10 digits
In staffs June 10, 2015 data request, staff advised Frontier that historically in Florida, 1+10
dialing has been reserved for calls which incur toll charges, and asked why Frontier believes it
should use 1+10 dialing instead ofjust 10-digit dialing. Frontier responded that it is not opposed
to the implementation of 10-digit dialing, as opposed to 1+10 digit dialing. On August 21, 2015,
Frontier, afterengaging in discussions with AT&T regarding its comments, amended its original
Petition. The Amended Petition confirms Frontier's willingness to implement 10-digit dialing for
the Walnut Hill and Molino exchanges, as opposed to 1+10 digit dialing as originally requested.
In addition. Frontier represents that AT&T does not oppose Frontier's amended request to
implement 10-digit dialing.
AT&T was the only communication carrier which submitted conmients in this docket. No public
comments from consumers were received. It appears that a change in the dialing pattern to 10digit mandatory dialing in the Walnut Hill and Molino exchanges will not have any significant
effect on either providers or consumers. Therefore, staff recommends that the Commission
approve Frontier's Amended Petition for 10-digit Mandatory Dialing for the Walnut Hill and
Molino exchanges.
-5-
Docket No. 150151 -TL
Issue 2
Date: September 3,2015
Issue 2: Should this docket be closed?
Recommendation: If no person whose substantial interests are affected by the proposed
agency action files a protest within 21 days of the issuance of the order, this docket should be
closed upon the issuance of a consummating order. (Murphy, Casey)
Staff Analysis: If no person whose substantial interests are affected by the proposed agency
action files a protest within 21 days of the issuance of the order, this docket should be closed
uponthe issuance of a consummating order. At the conclusion of the protest period, if no protest
is filed this docket should be closed upon the issuance of a consummating order.
-6-
Item 4
FILED SEP 03, 2015
DOCUMENT NO. 05541-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
CAPITAL CIRCLE OFFICE CENTER ● 2540 SHUMARD OAK BOULEVARD
TALLAHASSEE, FLORIDA 32399-0850
-M-E-M-O-R-A-N-D-U-MDATE:
September 3, 2015
TO:
Office of Commission Clerk (Stauffer)
FROM:
Division of Accounting and Finance (Cicchetti, Archer, Bulecza-Banks, Buys,
Cornelius, Fletcher, Maurey, Mouring, Slemkewicz)
Office of Auditing and Performance Analysis (Deamer, Hill)
Division of Economics (Draper, Higgins, McNulty, Shafer)
Division of Engineering (Matthews)
Office of the General Counsel (Gervasi, Ames, Corbari, Tan, Young)
Office of Industry Development and Market Analysis (Laux)
RE:
Docket No. 150148-EI – Petition for approval to include in base rates the revenue
requirement for the CR3 regulatory asset, by Duke Energy Florida, Inc.
Docket No. 150171-EI – Petition for issuance of nuclear asset-recovery financing
order, by Duke Energy Florida, Inc. d/b/a Duke Energy.
AGENDA: 09/15/15 – Regular Agenda – Motion to Approve Stipulation in Docket No.
150148-EI prior to hearing - Parties May Participate
COMMISSIONERS ASSIGNED: All Commissioners
PREHEARING OFFICER:
Brisé
CRITICAL DATES:
None
SPECIAL INSTRUCTIONS:
None
THIS ITEM WILL BE PRESENTED ORALLY
Item 5
FILED SEP 03, 2015
DOCUMENT NO. 05509-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
Capital Circle Ofuce Center • 2540 Shu>urd Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
DATE:
September 3, 2015
TO:
Office of Commission Clerk (Stauffer)
FROM:
Division ofEngineering (Ellis)^^^ Pl/ /l^
Division of Accounting and Finance fT. Brovm,^ofri
AiM
Division of Economics (Thompson)
Office of the General Counsel (Brovmless)
RE:
Docket No. 140174-WU - Application for approval of transfer of Certificate No.
117-W from Crestridge Utility Corporation to Crestridge Utilities, LLC, in Pasco
County.
AGENDA: 09/15/15 - Regular Agenda - Proposed Agency Action for Issue 2 only Interested Persons May Participate
COMMISSIONERS ASSIGNED:
All Commissioners
PREHEARING OFFICER:
Brise
CRITICAL DATES:
None
SPECIAL INSTRUCTIONS:
Staff recommends
the
Commission
simultaneously
consider Dockets Nos. 140174-WU and 140176-WU.
Case Background
Crestridge Utility Corporation (Crestridge or Utility) is a Class C water utility located in Pasco
County, serving approximately 616 residential customers. Crestridge is located in the Southwest
Florida Water Management District (SWFWMD). Based on the Utility's 2014 Annual Report,
Crestridge reported a total gross revenue of $100,689.
Docket No. 140174-WU
Date: September 3,2015
The Utility has provided water service since at least 1967. In 1973, Crestridge was issued
Certificate No. 117-W.' Certificate No. 117-W has not been amended to include additional
territory. Rate base was last established for Crestridge by Order No. PSC-93-0012-FOF-WU.^
Crestridge is owned by Holiday-Gulf Homes, Inc. (Seller) Both business entities are active
corporations registered with the Florida Department of State, Division of Corporations. In
addition to water service, Crestridge provides garbage collection and street lighting services in its
service territory.
On September 10, 2014, an application was filed by Michael Smallridge (Smalhidge or Buyer)
for the transfer of Crestridge and Certificate No. 117-W, to Crestridge Utilities, LLC (Crestridge
LLC) pursuant to Rule 25-30.037, Florida Administrative Code (F.A.C.). Crestridge LLC was
registered with the Florida Department of State, Division of Corporations on April 11, 2014.^
Simultaneous with the filing of the transfer docket, an application for a staff-assisted rate case
(SARC) for the LLC was also filed byMr. Smallridge.'^
An informal meeting was held on February 26, 2015, regarding both the transfer and SARC for
Crestridge. At this meeting, it was clarified that staff would only process the SARC upon
completion of the transfer.
On April 23, 2015, staff filed a recommendation that the Commission deny the request for
transfer for Crestridge. The primary issues identified in staffs recommendation addressed
failures to respond to data requests, conflicting information, and delays in filing customer
notices. On April 27, 2015, Mr. Smallridge, through his legal counsel, filed a request for deferral
from the agenda ofthe May 15,2015, Commission Conference.
This recommendation addresses the transfer of the water system. The Commission has
jurisdiction pursuant to Section 367.071, Florida Statutes (F.S.).
' Order No. 5674, issued March 8, 1973, in Docket No. 72589-W, In re: Application ofCrestridge Utilities, Inc. for
a certificate to operate a water utility in Pasco County.
^ Order No. PSC-93-0012-FOF-WU, issued January 5, 1993, in Docket No. 920417-WU, In re: Application for a
staff-assisted case in Pasco County by Crestridge Utility Corporation.
^ At this time, water services are being provided under the name of the LLC. However, the certificated entity
remains unchanged until the Commission approves the transfer of the certificate. Thus, for purposes of this
recommendation, the name "Crestridge" will apply to both the certificated entity and the LLC. Distinctions between
the LLC and original certificated entity will be made in the text where necessary for clarity.
"Docket No. 140175-WU.
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DocketNo. 140174-WU
Issue 1
Date: September 3,2015
Discussion of Issues
Issue 1: Should the application for transfer of Certificate No. 117-W from Crestridge Utility
Corporation to Crestridge Utilities, LLC be approved?
Recommendation: Yes, but with conditions which have been agreed to by the owner of the
utility. These conditions include payment of RAFs and filings of annual reports in a timely
manner, meeting all environment^ and health requirements for operation, responding to staff
data requests in a timely and complete fashion, not purchasing any additional utilities until after
December 31,2017, and updating staff on existing utility system purchases.
Staff recommends that, with the conditions discussed herein, the transfer is in the public interest
and should be approved effective the date of the Commission vote. The territory being
transferred is described in Attachment A. The resultant order should serve as Crestridge Utilities,
LLC's Certificate No. 117-W and be retained. The existing rates and charges should remain in
effect until a change is authorized by the Commission in a subsequent proceeding. The tariffs
reflecting the transfer should be effective for services rendered or connections made on or after
the stamped approval date on the tariffs, pursuant to Rule 25-30.475, F.A.C. Crestridge Utilities,
LLC should be responsible for annual reports and RAFs for 2015 and fiiture years. (Brownless,
T. Brown, Ellis, Norris, Thompson)
Staff Analysis: On March 31, 2014, Mr. Michael Smallridge purchased the assets of both
Crestridge and Holiday Gardens for $450,000. Mr. Smallridge was required to make a down
payment of $25,000 at closing and execute a purchase money mortgage with owner financing in
the amoimt of $425,000 at 7.5 percent interest for 12 years with a monthly payment of $4,484.71
until paid in full and to pay another $20,000 on or before January 31, 2015. In addition to the
Utilities, Mr. Smallridge also purchased the recorded street lighting and trash collection districts
for the Crest Ridge Gardens Subdivision and Holiday Gardens Unit One.^ In the Agreement for
Purchase and Sale of Water Assets (Purchase Agreement), the Seller agreed to allow Mr.
Smallridge to acquire title in the names "Holiday Gardens Utilities, LLC," and "Crestridge
Utilities, LLC." '
On April 11, 2014, as contemplated by the Purchase Agreement, Mr. Smallridge did create and
register Crestridge Utilities, LLC, with the Secretary of State. On August 8, 2014, the warranty
deeds for all of the property on which the Utility's facilities are located were executed in the
name ofthe LLC and subsequently recorded on September 18, 2014.^ Mr. Smallridge signed the
Promissory Note for the purchase of both Utilities on August 22, 2014, and commenced paying
the $4,500 per month^ mortgage on or about September 14, 2014. Title insurance policies were
also issued for each of the Utilities' properties on September 18,2014.
^Crest Ridge Gardens Restrictions, Book 341, p.438, Pasco County Public Records; Holiday Gardens Restrictions,
Book 378, P. 165, Pasco County Public Records.
^ Section 3.k.
' The warranty deed for Lot 692 ofthe Crest Ridge Gardens Unit Seven was recorded again on October 17,2014, to
reflect the addition of a date for the notary's signature.
®The Purchase Agreement and Promissory Note, dated August 22, 2014, states that the monthly payment is
$4,484.71. In response to a Staff Data Request, Mr.Smallridge indicatedthat he increased it to $4,500 per month.
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Docket No. 140174-WU
Issue 1
Date: September 3,2015
On September 10, 2014, Mr. Smallridge filed applications for the transfer of Certificate No. 117W from Crestridge to the LLC. The filing fee of $1,500 as required by Rule 25-30.020, F.A.C.,
was not provided at the time with the application.
Sections 367.045 and 367.071, F.S., and Rule 25-30.037, F.A.C., control the sale, assignment, or
transfer of water and wastewater authorization (certificates), facilities or majority operational
control. In order for a sale or transfer to be approved, the applicant must demonstrate that the
"proposed sale, assignment, or transfer is in the public interest and that the buyer, assignee or
transferee will fulfill the commitments, obligations, and representations ofthe Utility."' Rule 2530.037(j), F.A.C., further requires that the applicant demonstrate that the buyer has experience in
water or wastewater utility operations and has the financial ability to provide service.
As discussed in more detail below, throughout the early part of this process the applicant
repeatedly failed to provide requested relevant materials and documents necessary to evaluate his
financial or managerial ability to operate the Utility in accord with applicable Commission rules
and regulations. In some instances, the applicant provided responses that were incomplete or
contained conflicting and incorrect information.
Failure to Respond to Staffs Data Requests
The application, as filed, failed to include the information required by Rule 25-30.037(2), F.A.C.
On October 7, 2014, staff requested payment of the filing fee ($1,500) and additional data to
clarify the application and resolve several of the deficiencies. A due date for responses was set
for November 5, 2014. However, no responses were received within the requested timeframe.
Late-filed responses were received on November 10, 2014, which partially answered one
deficiency. No filing fee was provided.
Without further responses from the applicant, staff again sent letters on January 12, 2015,
requesting the payment of the filing fees and the additional information necessary to process the
application. A deadline for a response was set for January 22,2015. Staff noted that the failure to
pay the filing fees and provide the necessary information would result in a recommendation that
the application for transfer be denied. On January 23, 2015, partial responses were filed and the
filing fee was paid.
Staff continued its review of the filing and determined that further information was necessary to
approve the applications. On February 23,2015, staff issued a second data request, including six
questions, and requested responses by March 25, 2015. On March 18, 2015, the applicant filed
responses to one question and provided information that rendered another question moot. No
responses to the remaining four questions, including questions regarding financial information
had been provided as of the date of filing the first staff recommendation in this docket despite
staffs requests.
Staff sent a third set of data requests on March 4, 2015, with a total of 13 questions, and
requested responses by April 2, 2015. On March 10, 2015, staff amended the requests with an
additional question that had been inadvertently omitted. On April 6, 2015, the applicant partially
responded to staffs third data requests but failed to respond to certain questions regarding
'Section 367.071(1), F.S.
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Docket No. 140174-WU
Issue 1
Date: September 3,2015
financial information. Specifically, staff requested information concerning Mr. Smallridge's
personal line of credit which was referenced in his meeting with Commission staff on February
26, 2015. Other than to confirm that he does have a line of credit, Mr. Smallridge did not provide
the requested details regarding this account.
Conflicting Information
In addition to failing to file timely responses, many of the responses were incorrect or conflicted
with previous responses. The following examples are illustrative. First, attempts to determine the
amount of the total purchase price of $450,000 allocated to each Utility and to the street lighting
and garbage collection rights were repeatedly asked. In response to staffs deficiency letter dated
October 7, 2014, the applicant replied that the total purchase amount was pro-rated based on the
number of customers: $269,375 for Crestridge and $180,625 for Holiday Gardens.'® No dollar
amount was assigned to the street lighting and trash business "[s]ince the street lights and trash
are in the deed restrictions and I had to take them as part of Ae deal, but they have no value
because they have no assets nor do they produce any profit." In response to the December 3,
2014, staff audit findings that the net book value at the time of transfer for Holiday Gardens was
$24,544 and for Crestridge was $60,694, the applicant indicated that positive acquisition
adjustments in the amount of $156,081 and $208,681 for each Utility, respectively, were
appropriate.'* Staffs second data request no. 4 requested documentation to support how these
acquisition adjustments were made. However, on March 18, 2015, the applicant subsequently
withdrew the requests for acquisition adjustments for each utility, at which time the applicant
also amended the allocation of the purchase price of the Utilities to reflect a cost of $60,694 for
Crestridge, $24,544 to Holiday Gardens, and the balance of $364,762 to street lighting and
garbage collection rights. As noted above, Mr. Smallridge has asserted that these services are
provided at cost and produce no profit. This assertion conflicted with the general ledger provided
to audit staff which shows customers are billed approximately $4,450 per month more than the
Utilities were charged for street lighting and garbage collection services. Staff repeatedly
requested additional information to verify the amount billed to customers for street lighting and
garbage collection services. This information had not been provided as of the date of filing the
first staff recommendation in this docket.
Second, staff repeatedly asked about the closing date for the purchase of the Utilities in order to
determine the net book value of each Utility. At various times, the applicant either stated or
provided documents indicating that closing took place: a) on April 11, 2014, per the terms of the
Purchase Agreement; b) on August 22, 2014, as stated on the Closing Statement provided in
response to staffs third data request no. 9; or c) on August 27, 2014, as stated in response to
staffs third data request no. 7. Based upon filings in the SARC dockets, the closing date
provided to SWFWIv® was given as August 22, 2014.
Third, staff tried to verify the amount of the mortgage payment to the Seller due each month
pursuant to the Purchase Agreement. Depending on the documentation provided this amount
was: a) $4,484.71 per month as stated in Section 4 of the Purchase Agreement; b) $4,500 per
'® Based onthe 2013 Annual Reports, there were 615 residential customers for Crestridge and 449 residential and 7
general service customers for Holiday Gardens.
' A closing date of April 11, 2014, was used by the auditors for each Utility. This date was not contested by Mr.
Smallridge in his subsequent responses to the audits filed on March 18,2015.
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Docket No. 140174-WU
Issue 1
Date: September 3,2015
month as stated on the first page of the Promissory Note dated August 22, 2014, provided in
response to staffs first data request no. 4; or c) $4,484.71 per month as stated on the complete
Promissory Note dated August 22, 2014, provided in response to staff's third data request no. 8.
The terms of the Promissory Note state that the monthly pajmient terms can only be changed
with the written consent of the Seller. No such consent was provided.
Delays in Filing Customer Notices
Rule 25-30.030, F.A.C., requires that a legal notice be sent to state and local government
agencies, nearby water utilities, and customers within seven days of the application, in addition
to a newspaperpublicationfor any transfer. At a utility's request, staff provides a listing for state
and local government agencies and nearby water and wastewater utilities. This notice is allowed
to be a late-filed exhibit in a transfer application, and was noted as such in the applications for
both Utilities. However, no such exhibits were provided by the time of staffs first data requests,
nor had requests for the information been made. On October 7, 2014, as part of the first data
request, staff provided examples of a legal notice and a list of entities to notify, including
government agencies and other water utilities in Pasco County. On November 10, 2014, staff
received a request for an electronic copy of the example legal notice, which was provided.
On January 12, 2015, staff sent reminder letters to the applicant that included another copy of the
example legal notice and updated lists of government agencies and water utilities to contact, as
the previous lists had expired. In his January 23, 2015, responses to staffs first data request,
legal notices were provided to staff for each proposed transfer. Staff assisted the applicant with
attempts to resolve several flaws with the legal notices. On February 18, 2015, the applicant filed
flawed notarized affidavits, including multiple incorrect dates for the filing and mailing of the
notices, and both were missing affidavits firom the publishing newspapers. On March 11, 2015,
the applicant submitted proper affidavits of mailing customer notices and publications. Based
upon these documents, customers were notified of the transfers on February 6, 2015,
approximately five months after the applications were filed.
Section 367.1214, F.S., requires that a utility notify both the Commission and its customers
before changing a utility's name. Mr. Smallridge has represented that he held meetings with
customers in which he notified them of the name changes and change of ownership of the
utilities prior to September 10, 2014, when the application for transfer was filed. However, the
Commission was not notified of the name changes until the applications for transfer were filed.
Public Interest Standard
Pursuant to Rule 25-30.037(l)(j), F.A.C., the application contains statements describing the
technical and financial ability of the applicant to provide service to the proposed service area.
Staff believes the Buyer has ample experience in the utility regulatory process. As stated in his
application,'^ the Buyer was appointed to the Citrus County Water and Wastewater Authority,
the local regulatory body for Citrus County, where he served for seven years. The Buyer also
served as the "Class C" representative for the Governors Study Committee for Investor Owned
Water and Wastewater Utility Systems in 2013. He maintains a regular yearly schedule of
training classes through the Florida Rural Water Association and completed the NARUC Utility
Rate School in 2001. He serves as the appointed circuit court receiver for Four Points Utility
Document No. 05046-14, filed September 10, 2014, Exhibit 1.
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DocketNo. 140174-WU
Issue 1
Date: September 3, 2015
Corporation and West Lakeland Wastewater, Inc.,^^ both of which have been involved in staffassisted rate cases, limited proceedings or certificate transfer cases in the last three years. The
Buyer also owns Pinecrest Utilities, LLC (Pinecrest), which was involved in a staff-assisted rate
case and a tariff amendment to increase miscellaneous service charges in 2012.*"* In total, the
Buyer owns, is the receiver of, or is the manager of, a total of nine Class C water and wastewater
facilities, seven of which are regulated by the Commission.
In 2012, the Commission found that "the application contains documentation to demonstrate that
the Buyer has sufficient personal financial resources to operate and maintain the Pinecrest water
system."'^ At the time the Commission made that determination, Pinecrest was the only system
owned by Mr. Smallridge. Since then, the Buyer purchased Crestridge, Holiday Gardens, ^and
West Lakeland Wastewater, Inc.'^ In addition, Florida Utility Services 1, LLC, which is owned
and operated bv Mr. Smallridge, purchased Charlie Creek Utilities, LLC'^ and East Marion
Utilities, LLC.^^
Staffs First Recommendation
Notwithstanding his training and experience with both the Commission and the regulatory
process, Mr. Smallridge initially failed to respond or to comply with Commission rules and
procedures. As a result, on April 23, 2015, st^ filed a recommendation that the Commission
deny the requests for transfer of certificates for Crestridge and Holiday Gardens. The primary
issues identified in staffs recommendation addressed failures to respond to data requests,
conflicting information, and delays in filing customer notices. On April 27, 2015, Mr.
Smallridge, through his counsel, filed a request for deferral firom the agenda of the May 15,
2015, Commission Conference.
After the deferral, staff made multiple data requests in an attempt to resolve the concerns raised
in the original recommendation. Staff initially had questions regarding the Buyer's financial
ability to maintain and make necessary improvements to the systems currently owned, especially
given the rate at which additional systems were being acquired. Staff reviewed the personal
financial statements and tax returns of the Buyer, as well as the financial statements and tax
returns of Florida Utility Services 1, LLC. The Buyer also provided staff with copies of recent
" The Buyer also serves as the appointed circuit court receiver for Bimini Bay Utilities, which is not regulated by
the Commission.
Docket No. 120269-WU, Application for staff-assisted rate case in Polk County by Pinecrest Utilities, LLC; and
120290-WU, Request for approval of amendment to tariff sheets for miscellaneous service charges in Polk County
by Pinecrest Utilities, LLC.
Order No. PSC-12-0475-PAA-WU, issued September 18,2012, in Docket No. 110311-WU, In re: Applicationfor
transfer ofCertificate No. 588-Wfrom Pinecrest Ranches, Inc., in Polk County, to Pinecrest Utilities, LLC, p.3.
Docket No. 140176-WU, Application for approval of transfer of Certificate No. 116-W from Holiday Gardens
Utilities, Inc. to Holiday Gardens Utilities, LLC, in Pasco County.
" Docket No. 130065-SU, Application for transfer of Certificate No. 515-S in Polk County from West Lakeland
Wastewater, Inc. to West Lakeland Wastewater, LLC. Application was withdrawn at the request of the Utility on
September 11,2014,
According to the Utility, an application for original certificate will be filed with the Conmiission no later than
September 4,2015.
" Docket No. 150091-WS, Application for approval of transfer of Certificate Nos. 490-W and 425-S from East
Marion Sanitary Systems, Inc. to East Marion Utilities, LLC, in Marion County.
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Docket No. 140174-WU
Issue 1
Date: September 3, 2015
loan documents^® indicating access to additional sources of capital, aswell asa three-year capital
expenditure and funding estimate^' which included the status ofrecent improvements. Additional
details regarding the Buyer's communication with customers as well as specific actions he has
taken to improve the Utility since purchasing it were also provided.
Mr. Smallridge has responded promptly to staffs latest data requests and on the whole the
responses are more complete and noncontradictory. Since the deferral, conversations with Mr.
Smallridge's counsel about staffs areas of concern discussed above have identified conditions
for certification which offer solutions to rectify these concerns. These conditions, as stated
below, have been agreed to by Mr. Smallridge.
Conditional Approval to Address Concerns
Given these unique set of facts, an alternative approach to the denial of the transfer of the
certificate in this case is to approve the transfer of certificate for Crestridge with the following
conditions:
For each Commission-related utility owned directly or indirectly by Smallridge
(Crestridge, Holiday Gardens, West Lakeland, East Marion, Charlie Creek and
Pinecrest):
1.
Pay all RAFs completely and on time.
Rule 25-30.120, FAC; Section 367.145, F.S.
2.
File all annual reports on time. Each annual report filed during the period
these conditions are in effect shall include a notarized affidavit stating that
Michael Smallridge has not purchased, either directly or indirectly, any
additional utilities during theperiod ending December 31^^ of the lastyear.
Rule 25-30.110, FAC; Section 367.121(l)(c), (i), F.S.
3
Meet all DEP and Water Management District requirements for operation.
Section 367.11(2), F.S.
4.
Comply completely and in a timely fashion with all Commission staff data
requests associated with any Smallridge utility.
Section 367.121(l)(c), (i), F.S.
5.
Michael Smallridge shall not purchase, either directly or indirectly, any
other Commission-regulated utilities until after December 31,2017.
6.
Michael Smallridge shall file an application for certificate for Charlie
Creek and provide a status report on West Lakeland's efforts to secure the
land on which its wastewater facilities are located by September 4, 2015.
7.
Should Michael Smalhidge fail to meet these requirements, the
Commission staff shall show cause Michael Smallridge as to whether his
certificate(s) should be revoked or further conditions imposed.
Document No. 04001-15, filed June 29,2015.
Document No. 04718-15, filed July 28,2015.
-8-
Docket No. 140174-WU
Issue 1
Date: September 3, 2015
These conditions are either based on the Commission's rules and authorizing statutes or Mr.
Smallridge's current business plans for each of the six Commission-regulated utilities that he
owns either directly or indirectly. Both Mr. Smallridge and staff agree that the proposed
conditions will allow the Commission to closely monitor Mr. Smallridge's compliance with the
financial responsibilities associated with providing adequate service to the customers of
Crestridge. For that reason, staff recommends that these conditions should be imposed on this
certification in the public interest.
Section 367.045(5)(a), F.S., states that "[t]he commission may grant or amend a certificate of
authorization, in whole or in part or with modifications in the public interest."[emDhasis added]
The Commission has included conditions in prior transfer of certificate cases. ^The conditions
proposed for this transfer are directly related to the standards of technical and financial ability to
provide service to the certificated territory mandated by Section 367.071(1), F.S. A decision that
allows the Utility to proceed, but closely monitors its compliance with its service responsibilities,
is a "modification in the public interest."
Other Matters
If the conditions above are approved, the amended application would be considered within
compliance with the governing statues and rules concerning an application for transfer of
certificate. The closing date of the sales contract, based upon the most recent data response,
should be August 27, 2014. Pursuant to Section 367.071(1), F.S., the sales contract was made
contingent upon Commission approval.
Noticing Provisions
As noted in staffs original recommendation, customers were notified of the transfer on February
6, 2015. No objections to the notice have been filed with the Commission and the time for filing
objections, based on the late notice date, has expired. A description of the territory being
transferred is appended to this recommendation as Attachment A. Recorded copies of warranty
deeds have been provided as part of responses to staffs data requests which are evidence that
Crestridge owns the land on which the water treatment facilities are located, pursuant to Rule 2530.037(2)(q), F.A.C.
Sales Contract
Pursuant to Rule 25-30.037(2)(g), F.A.C., the application contains a copy of the sales contract,
which includes the purchase price, terms of payment, and a list of the assets purchased. As noted
above, the purchase contract was for the certificated Utilities of Crestridge and Holiday Gardens
and non-utility assets for each service territory for waste disposal and street lighting. Based upon
the amended application, Crestridge was acquired for $60,694 of the $450,000 combined
purchase price.
Pursuant to Rule 25-30.037(2)(h), F.A.C., the contract addressed customer deposits, customer
advances, leases, and other matters. According to the application, there are no leases, developer
agreements, or guaranteed revenue contracts associated with the transfer.
^ Order No. PSC-98-0043-FOF-WS, issued January 6, 1998, in Docket No. 951026-WS, In re: Application for
transfer of Certificates Nos. 36I-W and 3I6-S in Citrus Countyfrom J & J Water and Sewer Corporation to
Meadows Utility Company, Inc.
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Docket No. 140174-WU
Issue 1
Date: September 3,2015
Accounting Standards
Mr. Smallridge is aware that Crestridge's books and records must be maintained in accordance
with the National Association of Regulatory Utility Commissioners (NARUC) Uniform System
of Accounts (USOA).
Other Regulatory Entities
The Florida Department of Environmental Protection (DEP) sets requirements for the water
system. During the January 2015 Sanitary Survey, several deficiencies were found with the water
system, including issues v^dth one of the Utilities' water tanks. As of May 2015, all other
deficiencies have been corrected and DEP has accepted a plan for the replacement of a
pneumatic water tank to resolve the remaining deficiency. The Utility is in the process of
applying for renewal of its water use permit from SWFWMD. At this time, Mr. Smallridge has
not yet paid his filing fee and has outstanding data requests. Mr. Smallridge has requested and
received a time extension for filing this information until September 28,2015.
Rates and Charges
The Utility's rates were last approved in a staff-assisted rate case in 1993.^^ The rates were
subsequently amended to reflect a four year rate reduction required by Section 367.0816, F.S., in
1997 and numerous price indexes. In 2014, Crestridge was approved for an after-hours normal
reconnection charge, a convenience charge, a late payment charge, a meter tampering charge,
and initial customer deposits.^"* The Utility is built out and has no approved service availability
charges other than a meter installation charge. The Utility's existing rates are shown on Schedule
No. 2. Rule 25-9.044(1), F.A.C., provides that, in the case of a change of ownership or control of
a utility, the rates, classifications, and regulations of the former owner must continue unless
authorized to change by this Commission. Therefore, staff recommends that the Utility's existing
rates and charges remain in effect until a change is authorized by this Commission in a
subsequent proceeding.
Annual Reports and Regulatory Assessment Fees
Staff has verified that the Utility is current on the filing of annual reports and RAFs through
December 31, 2014. The Buyer will be responsible for filing the Utility's annual reports and
paying RAFs for 2015 and all future years.
Conclusion
Staff recommends that, with the conditions discussed herein, the transfer is in the public interest
and should be approved effective the date of the Commission vote. The territory being
transferred is described in Attachment A. The resultant order should serve as Crestridge Utilities,
LLC's Certificate No. 117-W and be retained. The existing rates and charges should remain in
effect until a change is authorized by the Commission in a subsequent proceeding. The tariffs
reflecting the transfer should be effective for services rendered or connections made on or after
the stamped approval date on the tariffs, pursuant to Rule 25-30.475, F.A.C. Crestridge Utilities,
LLC should be responsible for annual reports and RAFs for 2015 and future years.
^Order No. PSC-93-0012-FOF-WU, issued January 5, 1993, in Docket No. 920417-WU, In re: Application for
staff-assisted rate case in Pasco County by Crestridge Utility Corporation.
^''Order No. PSC-14-0016-TRP-WU, issued January 6, 2014, in Docket No. 130251-WU, In re: Application for
approval ofmiscellaneous service charges in Pasco County, by Crestridge Utilities, Inc.
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Docket No. 140174-WU
Issue 2
Date: September 3,2015
Issue 2: What is the appropriate net book value for Crestridge's water system for transfer
purposes and should an acquisition adjustment be approved?
Recommendation: The net book value of Crestridge's water system for transfer purposes
should be $62,265 as of August 27, 2014. An acquisition adjustment should not be included in
rate base. Within 90 days of the date of the final order, Crestridge should be required to provide
general ledger balances which show its books have been updated to reflect the Commissionapproved balances as of August 27, 2014. The adjustments should be reflected in the Utility's
2015 Annual Report when filed. (T. Brovm, Norris)
Staff Analysis: Rate base was last established for the Utility, as of March 31, 1992.^^ The
Utility has also filed for a staff-assisted rate case in Docket No. 140175-WU. The purpose of
establishing net book value (NBV) for transfers is to determine whether an acquisition
adjustment should be approved. The NBV does not include normal ratemaking adjustments for
used and usefiil plant or working capital. The utility's NBV has been updated to reflect balances
as of August 27, 2014. Staffs recommended NBV, as described below, is shown on Schedule 1.
Utility Plant in Service (UPlS)
The Utility's general ledger reflected a UPIS balance of $89,699, as of August 27, 2014. Audit
staff reviewed UPIS additions since the last rate case proceeding in 1992 to calculate a UPIS
balance that totals $220,682. As a result, UPIS should be increased by $130,983 to reflect a UPIS
balance of $220,682, as of August 27, 2014. Staffs reconmiended UPIS balance is shown on
Schedule 1.
Land
The Utility's general ledger reflected a land balance of $6,000, as of August 27, 2014. In PSC
Order No. 93-0012-FOF-WU, issued January 5, 1993, the Commission established the value of
the land to be $6,000. There have been no additions to land purchased since that order was
issued. No additional adjustments have been identified by staff. Therefore, staff recommends
land of $6,000, as of August 27, 2014. Staff's recommended land balance is shown on Schedule
1.
Accumulated Depreciation
The Utility's general ledger reflected an accumulated depreciation balance of $39,641, as of
August 27, 2014. Audit staff calculated that the appropriate accumulated depreciation balance to
be $164,417. As a resuh, accumulated depreciation should be increased by $124,776 to reflect an
accumulated depreciation balance of $164,417, as of August 27, 2014. Staffs recommended
accumulated depreciation balance is shown on Schedule 1.
Contributions-in-Aid-of-Construction (CIAC) & Accumulated Amortization of CIAC
As of August 27, 2014, the Utility's general ledger reflected balances of $0 for CIAC and $0 for
accumulated amortization of CIAC. There were no additions to CIAC since the last rate case.
Audit staff used the balances of CIAC and Accumulated Amortization of CIAC fi-om the last rate
proceeding and calculated the Accumulated Amortization of CIAC, as of August 27,2014. CIAC
^ Order No. PSC-93-0012-FOF-WU, issued January 5, 1993, in Docket No. 920417-WU, In re: Application for a
staff-assisted rate case by Crestridge Utility Corporation in Pasco County.
-11-
Docket No. 140174-WU
Issue 2
Date: September 3,2015
was fully amortized in the year 1999 in the amount of $86,055. Therefore, staff recommends a
CIAC balance of $86,055 and accumulated amortization of CIAC balance of $86,055, as of
August 27, 2014. Staff's recommended balances for CIAC and accumulated amortization of
CIAC are shown on Schedule 1.
Net Book Value
The Utility's general ledger reflected NBV of $56,058. Based on the adjustments described
above, staff recommends that the NBV for the Utility is $62,265, as of August 27, 2014. Staffs
recommended NBV and the NARUC USOA balances for UPIS and accumulated depreciation
are shown on Schedule 1, as of August 27, 2014.
Acquisition Adjustment
An acquisition adjustment results when the purchase price differs from the NBV of the assets at
the time of the acquisition. Of the total contract purchase price of $450,000, the Buyer allocated
$60,694 to Crestridge Utilities, LLC and $24,544 to Holiday Gardens, a sister utility. The
balance ofthe purchase price, $364,762, is allocated to garbage and street lighting operations.^^
As stated above, staff recommends that the appropriate NBV to be $62,265. Pursuant to Rule 2530.0371, F.A.C., a positive acquisition adjustment may be appropriate when the purchase price is
greater than the NBV, and a negative acquisition adjustment may be appropriate when the
purchase price is less than NBV. As set forth in Rule 25.30.0371(3), F.A.C., if the purchaseprice
is greater than 80 percent of the net book value, a negative acquisition adjustment is not included
in rate base. As the purchase price of $60,694 paid exceeds 80 percent of staff's recommended
NBV of $62,265, a negative acquisition should not be included in rate base. Accordingly, staff
recommends that no acquisition adjustment be approved.
Conclusion
Based on the above, staff recommends that the NBV for transfer purposes is $62,265, as of
August 27, 2014. No acquisition adjustment should be included in rate base. Within 90 days of
the date of the final order, the Buyer should be required to provide general ledger balances which
show its books have been updated to reflect the Commission-approved balances, as of August
27, 2014. The adjustments should be reflected in the Utility's 2015 Armual Report when filed.
Document No 01503-15, filed March 18, 2015.
-12-
Docket No. 140174-WU
Issue 3
Date: September 3,2015
Issue 3: Should this docket be closed?
Recommendation: If no protest to the proposed agency action is filed by a substantially
affected person within 21 days of the date of the order, a consummating order should be issued
and the docket should be closed administratively after Crestridge has provided proof that its
general ledgers have been updated to reflect the Commission-approved balances, as of August
27, 2014. (Brownless)
Staff Analysis: If no protest to the proposed agency action is filed by a substantially affected
person within 21 days of the date of the order, a consummating order should be issued and the
docket should be closed administratively after Crestridge has provided proof that its general
ledgers have been updated to reflect the Commission-approved balances, as of August 27,2014.
-13-
Docket No. 140174-WU
Attachment A
Date: September 3,2015
Crestridge Utilities, LLC
Water Territoiy
Pasco County
Township 26 South, Range 16 East
Sections 31 & 32:
Commence at the Southwest comer of the Southeast of Section 31 for a Point of Beginning;
thence run South 89 degrees 52 minutes 49 seconds west, 59.44 feet;
thence run North 0 degrees 01 minutes 11 seconds West, 142.70 feet;
thence run North 89 degrees 52 minutes 49 seconds East, 1380.64 feet;
thence run North 0 degrees 35 minutes 10 seconds East, 1175.86 feet;
thence run North 89 degrees 57 minutes 55 seconds East, 1316.08 feet;
thence run South 89 degrees 58 minutes 03 seconds East, 441.22 feet;
thence run South 0 degrees 29 minutes 49 seconds West, 1317.77 feet;
thence run North 89 degrees 48 minutes 47 seconds West, 90.27 feet;
thence run South 0 degrees 07 minutes 11 seconds East, 25 feet;
thence run North 89 degrees 48 minutes 47 seconds West, 349.87 feet;
thence run South 89 degrees 52 minutes 49 seconds West, 2639.38 feet to the Point of
Beginning.
Also: Commence at the Southwest comer of the Southeast Va, of Section 31;
thence run South 89 degrees 52 minutes 49 seconds west, 59.44 feet;
thence run North 0 degrees 01 minutes 11 seconds West, 142.70 feet;
thence run North 89 degrees 52 minutes 49 seconds East, 1380.64 feet;
thence run North 0 degrees 35 minutes 10 seconds East, 1175.86 feet;
thence run North 0 degrees 32 minutes 57 seconds East, 329.95 feet to the Point of Beginning;
thence run North 0 degrees 32 minutes 57 seconds East, 989.39 feet;
thence run North 0 degrees 52 minutes 19 seconds East, 638.17 feet;
thence run North 61 degrees 27 minutes 32 seconds East, 763.34 feet;
thence run South 51 degrees 00 minutes 00 seconds East, 825.42 feet;
thence run South 1 degree 01 minutes 04 seconds West, 485 feet;
thence run South 0 degrees 25 minutes 49 seconds West, 835 feet;
thence run South 89 degrees 55 minutes 56 seconds East, 25 feet;
thence run South 0 degrees 25 minutes 29 seconds West, 134.39 feet;
thence run South 89 degrees 59 minutes 00 seconds West, 1340.20 feet to the point of
Beginning.
-14-
Docket No. 140174-WU
Attachment B
Date: September 3,2015
FLORIDA PUBLIC SERVICE COMMISSION
authorizes
Crestridge Utilities, LLC
pursuant to
Certificate Number 117-W
to provide water service in Pasco 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 Tvpe
5674
23524
03/08/1973
09/20/1990
72589-W
900244-WU
Original Certificate
Transfer Majority Control
*
*
140174-WU
Transfer of Certificate
*Order Numbers and dates to be provided at time of issuance.
-15-
Docket No. 140174-WU
Schedule 1
Date: September 3,2015
Page 1 of3
Crestridge Utilities, LLC
Water System
Schedule of Net Book Value as of August 27,2014
Staff
Balance Per
Description
Utility Plant In Service
Land
Accumulated Depreciation
Utility
$89,699
6,000
(39,641)
CIAC
0
Amortization of CIAC
0
Adjustments
$130,983 A
0
(124,776) B
(86,055) C
86.055
$6.207
Net Book Value
-16-
D
Recommended
$220,682
6,000
(164,417)
(86,055)
86.055
Docket No. 140174-WU
Schedule 1
Date: September 3, 2015
Page 2 of 3
Explanation of Staffs Recommended
Adjustments to Net Book Value as of August 27,2014
Water System
Explanation
Amount
A. Utility Plant In Service
To reflect appropriate amount of utility plant in service.
B. Accumulated Depreciation
To reflect appropriate amount of accumulateddepreciation.
C. Contributions-in-Aid-of-Construction (CIAC)
To reflect appropriate amount of CIAC.
($86.055"^
D. Accumulated Amortization of CIAC
To reflect appropriate amount of accumulated amortization of CIAC.
Total Adjustments to Net Book Value as of August 27,2014.
-17-
$86.055
$6.207
Docket No. 140174-WU
Schedule 1
Date: September 3,2015
Page 3 of 3
Crestridge Utilities, LLC
Water System
Schedule of Staff Recommended Account Balances as of August 27,2014
Accumulated
Account
330
Description
Structures & Improvements
Wells and Springs
Supply Mains
Power Generating Equipment
Pumping Equipment
Water Treatment Equipment
Dist. Reservoirs & Standpipes
331
No.
304
307
309
310
311
320
UPIS
$8,255
9,837
2,946
3,000
43,970
405
Depreciation
($6,108)
(9,837)
(2,346)
(7,364)
(33,670)
(1,940)
28,751
9,688
Transmission & Dist. Mains
45,742
333
Services
12,509
334
Meters & Meter Installations
61,294
(45,742)
(12,509)
(49,691)
335
Hydrants
Other Plant & Misc. Equip.
Office Equipment & Furniture
339
340
600
(3,737)
(600)
560
(560)
2,812
r$164.417>
Total
-18-
Docket No. 140174-WU
Schedule 2
Date: September 3,2015
Crestridge Utilities, LLC
Monthly Water Rates
Residential and General Service
Base Facility Charge by Meter Size
5/8" X 3/4"
3/4"
1"
1-1/2"
2"
3"
4"
6"
$7.76
$11.58
$19.36
$38.74
$62.00
$124.07
$193.80
$387.15
Charge per 1,000 Gallons - Residential and General Service
$1.51
Initial Customer Deposits
Residential-5/8"X3/4"
$25.00
General Service - All Meters
2 times the average estimated bill
Miscellaneous Service Charges
Business Hours
After Hours
$15.00
$15.00
$15.00
$10.00
N/A
$30.00
N/A
N/A
Initial Connection Charge
Normal Reconnection Charge
Violation Reconnection Charge
Premises Visit Charge (in lieu
of disconnection)
Convenience Charge
Late Payment Charge
Meter Tampering Charge
$2.50
$5.25
$50.00
Service Availability Charges
Meter Installation Charge
5/8" X 3/4"
All other meter sizes
$75.00
Actual Cost
-19-
Item 6
FILED SEP 03, 2015
DOCUMENT NO. 05510-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
Capital Circle Office Center • 2540 Siiumard Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
DATE:
September 3, 2015
TO:
Office of Commission Clerk (Stauffer)
FROM:
Division ofEngineering (Ellis)^
/r
Division ofAccounting and Finance (T. Browr^ No
Division of Economics (Thompson)
j) |0
Office of the General Counsel (Brownless)
RE:
'^
Docket No. 140176-WU - Application for approval of transfer of Certificate No.
116-W from Holiday Gardens Utilities, Inc. to Holiday Gardens Utilities, LLC, in
Pasco County.
AGENDA: 09/15/15 - Regular Agenda - Proposed Agency Action for Issue 2 only Interested Persons May Participate
COMMISSIONERS ASSIGNED:
Ail Commissioners
PREHEARING OFFICER:
Brise
CRITICAL DATES:
None
SPECIAL INSTRUCTIONS:
Staff recommends
the
Commission
simultaneously
consider Dockets Nos. 140174-WU and 140176-WU.
Case Background
Holiday Gardens Utilities, Inc. (Holiday Gardens or Utility) is a Class C water utility located in
Pasco County, serving approximately 449 residential customers and two general service
customers. Holiday Gardens is located in the Southwest Florida Water Management District
(SWFWMD). Based on the utility's 2014 Annual Report, Holiday Gardens reported a total gross
revenue of $80,247.
Docket No. 140176-WU
Date: September 3, 2015
The Utility has provided water service since at least 1967. In 1973, Holiday Gardens was issued
Certificate No. 116-W.' Certificate No. 116-W was last amended in Order No. PSC-93-1530-
FOF-WU.^ Rate based was last established for Holiday Gardens by Order No. PSC-93-0013FOF-WU.^
Holiday Gardens is owned by Holiday-Gulf Homes, Inc. (Seller) Both business entities are active
corporations registered with the Florida Department of State, Division of Corporations. In
addition to water service, Holiday Gardens provides garbage collection and street lighting
services in its service territory.
On September 10, 2014, an application was filed by Michael Smallridge (Smallridge or Buyer)
for the transfer of Holiday Gardens and Certificate No. 116-W, to Holiday Gardens Utilities,
LLC (Holiday Gardens LLC) pursuant to Rule 25-30.037, Florida Administrative Code (F.A.C.).
Holiday Gardens LLC was registered v^th the Florida Department of State, Division of
Corporations on April 11, 2014."^ Simultaneous with the filing of the transfer docket, an
application for a staff-assisted rate case (SARC) for the LLC was also filed by Mr. Smallridge.^
An informal meeting was held on February 26, 2015, regarding both the transfer and SARC for
Holiday Gardens. At this meeting, it was clarified that staff would only process the SARC upon
completion of the transfer.
On April 23, 2015, staff filed a recommendation that the Commission deny the request for
transfer for Holiday Gardens. The primary issues identified in staffs recommendation addressed
failures to respond to data requests, conflicting information, and delays in filing customer
notices. On April 27,2015, Mr. Smallridge through his legal counsel, filed a request for deferral
fi:om the agenda of the May 15,2015, Commission Conference.
This recommendation addresses the transfer of the water system. The Commission has
jurisdiction pursuant to Section 367.071, Florida Statutes (F.S.).
' Order No. 5675, issued March 8, 1973, in Docket No. 72590-W, In re: Application ofHoliday Gardens Utilities,
Inc.for a certificate to operate a water utility in Pasco County.
^ Order No. PSC-93-1530-FOF-WU, issued October 19, 1993 in Docket No. 930164-WU, In re: Application for
Amendment ofCertificate No. 116-W in Pasco County, by Holiday Gardens Utilities, Inc.
^Order No. 93-0013-FOF-WU, issued January 5, 1993 in Docket No. 920418-WU, In re: Applicationfor a staffassisted rate case by Holiday Gardens Utilities, Inc., in Pasco County.
" At this time water services are being provided under the name ofthe LLC. However, the certificated entity remains
unchanged until the Commission approves the transfer of the certificate. Thus, for purposes of this recommendation,
the name "Holiday Gardens" will apply to both the certificated entity and the LLC. Distinctions between the LLC
and original certificated entity will be made in the text where necessary for clarity.
^ Docket No. 140177-WU.
-2-
Docket No. 140176-WU
Issue 1
Date: September 3, 2015
Discussion of Issues
Issue 1: Should the application for transfer of Certificate No. 116-W from Holiday Gardens
Utilities, Inc. to Holiday Gardens Utilities, LLC be approved?
Recommendation: Yes, but with conditions which have been agreed to by the owner of the
utility. These conditions include payment of RAFs and filings of armual reports in a timely
manner, meeting all environment^ and health requirements for operation, responding to staff
data requests in a timely and complete fashion, not purchasing any additional utilities until after
December 31,2017, and updating staff on existing utility system purchases.
Staff recorrunends that with the conditions discussed herein the transfer is in the public interest
and should be approved effective the date of the Commission vote. The territory being
transferred is described in Attachment A. The resultant order should serve as Holiday Gardens
Utilities, LLC's Certificate No. 116-W and be retained. The existing rates and charges should
remain in effect until a change is authorized by the Commission in a subsequent proceeding. The
tariffs reflecting the transfer should be effective for services rendered or connections made on or
after the stamped approval date on the tariffs, pursuant to Rule 25-30.475, F.A.C. Holiday
Gardens Utilities, LLC should be responsible for armual reports and RAFs for 2015 and future
years. (T. Brown, Brownless, Ellis, Norris, Thompson)
Staff Analysis: On March 31, 2014, Mr. Michael Smallridge purchased the assets of both
Crestridge and Holiday Gardens for $450,000. Mr. Smallridge was required to make a down
payment of $25,000 at closing and execute a purchase money mortgage with owner financing in
the amount of $425,000 at 7.5 percent interest for 12 years with a monthly payment of $4,484.71
until paid in full and to pay another $20,000 on or before January 31, 2015. In addition to the
utilities, Mr. Smallridge also purchased the recorded street lighting and trash collection districts
for the Crest Ridge Gardens Subdivision and Holiday Gardens Unit One.^ In the Agreement for
Purchase and Sale of Water Assets (Purchase Agreement), the Seller agreed to allow Mr.
Smallridge to acquire title in the names "Holiday Gardens Utilities, LLC," and "Crestridge
Utilities, LLC."
On April 11, 2014, as contemplated by the Purchase Agreement, Mr. Smalhidge did create and
register Holiday Gardens Utilities, LLC, with the Secretary of State. On August 8, 2014, the
warranty deeds for all of the property on which the Utility's facilities are located were executed
in the name of the LLC and subsequently recorded on September 18, 2014.^ Mr. Smallridge
signed the Promissory Note for the purchase of both Utilities on August 22, 2014, and
commenced paying the $4,500 per month^ mortgage on or about September 14, 2014. Title
insurance policies were also issued for each of the Utilities' properties on September 18, 2014.
^Crest Ridge Gardens Restrictions, Book 341, p. 438, Pasco County Public Records; Holiday Gardens Restrictions,
Book 378, P. 165, Pasco County Public Records.
' Section 3.k.
®The warranty deed for Lot 692 ofthe Crest Ridge Gardens Unit Seven was recorded again onOctober 17, 2014, to
reflect the addition of a date for the notary's signature.
' The Purchase Agreement and Promissory Note, dated August 22, 2014, state that the monthly payment is
$4,484.71. In response to a Staff Data Request, Mr. Smalhidge indicated that he increased it to $4,500 per month,
-3-
Docket No. 140176-WU
Issue 1
Date: September 3, 2015
On September 10, 2014, Mr. Smallridge filed applications for the transfer of Certificate No. 116W from Holiday Gardens to the LLC. The filing fee of $1,500 as required by Rule 25-30.020,
F.A.C., was not provided at the time with the application.
Sections 367.045 and 367.071, F.S., and Rule 25-30.037, F.A.C., control the sale, assignment, or
transfer of water and wastewater authorization (certificates), facilities or majority operational
control. In order for a sale or transfer to be approved, the applicant must demonstrate that the
"proposed sale, assignment, or transfer is in the public interest and that the buyer, assignee or
transferee will fulfill the commitments, obligations, and representations ofthe utility."*® Rule 2530.037(j), F.A.C., further requires that the applicant demonstrate that the buyer has experience in
water or wastewater utility operations and has the financial ability to provide service.
As discussed in more detail below, throughout the early part of this process the applicant
repeatedly failed to provide requested relevant materials and documents necessary to evaluate his
financial or managerial ability to operate the utility in accord with applicable Commission rules
and regulations. In some instances, the applicant provided responses that were incomplete or
contained conflicting and incorrect information.
Failure to Respond to Staffs Data Requests
The application, as filed, failed to include the information required by Rule 25-30.037(2), F.A.C.
On October 7, 2014, staff requested payment of the filing fee ($1,500) and additional data to
clarify the application and resolve several of the deficiencies. A due date for responses was set
for November 5, 2014. However, no responses were received within the requested timeframe.
Late-filed responses were received on November 10, 2014, which partially answered one
deficiency. No filing fee was provided.
Without further responses from the applicant, staff again sent letters on January 12, 2015,
requesting the payment of the filing fees and the additional information necessary to process the
application. A deadline for a response was set for January 22, 2015. Staff noted that the failure to
pay the filing fees and provide the necessary information would result in a recommendation that
the application for transfer be denied. On January 23, 2015, partial responses were and the filing
fee was paid.
Staff continued its review of the filmg and determined that further information was necessary to
approve the applications. On February 23, 2015, staff issued a second data request, including six
questions, and requested responses by March 25, 2015. On March 18, 2015, the applicant filed
responses to one question and provided information that rendered another question moot. No
responses to the remaining four questions, including questions regarding financial information
had been provided as of the date of filing the first staff recommendation in this docket despite
staffs requests.
Staff sent a third set of data requests on March 4, 2015, with a total of 13 questions, and
requested responses by April 2, 2015. On March 10, 2015, staff amended the requests with an
additional question that had been inadvertently omitted. On April 6, 2015, the applicant partially
responded to staffs third data requests but failed to respond to certain questions regarding
Section 367.071(1), F.S.
-4-
Docket No. 140176-WU
Issue 1
Date: September 3, 2015
financial information. Specifically, staff requested information concerning Mr. Smallridge's
personal line of credit which was referenced in his meeting with Commission staff on February
26, 2015. Other than to confirm that he does have a line of credit, Mr. Smallridge did not provide
the requested details regarding this account.
Conflicting Information
In addition to failing to file timely responses, many of the responses were incorrect or conflicted
with previous responses. The following examples are illustrative. First, attempts to determine the
amount of the total purchase price of $450,000 allocated to each Utility and to the street lighting
and garbage collection rights were repeatedly asked. In response to staffs deficiency letter dated
October 7, 2014, the applicant replied that the total purchase amount was pro-rated based on
number of customers: $269,375 for Crestridge and $180,625 for Holiday Gardens.No dollar
amount was assigned to the street lighting and trash business "[s]ince the street lights and trash
are in the deed restrictions and I had to take them as part of the deal, but they have no value
because they have no assets nor do they produce any profit." In response to the December 3,
2014, staff audit findings that the net book value at the time of transfer for Holiday Gardens was
$24,544 and for Crestridge was $60,694, the applicant indicated that positive acquisition
adjustments in the amount of $156,081 and $208,681 for each Utility, respectively, were
appropriate.^^ Staffs second data request no. 4 requested documentation to support how these
acquisition adjustments were made. However, on March 18, 2015, the applicant subsequently
withdrew the requests for acquisition adjustments for each utility, at which time the applicant
also amended the allocation of the purchase price of the utilities to reflect a cost of $60,694 for
Crestridge, $24,544 to Holiday Gardens, and the balance of $364,762 to street lighting and
garbage collection rights. As noted above, Mr. Smallridge has asserted that these services are
provided at cost and produce no profit. This assertion conflicted with the general ledger provided
to audit staff which shows customers are billed approximately $4,450 per month more than the
Utilities were charged for street lighting and garbage collection services. Staff repeatedly
requested additional information to verify the amount billed to customers for street lighting and
garbage collection services. This information had not been provided as of the date of filing the
first staff recommendation in this docket.
Second, staff repeatedly asked about the closing date for the purchase of the Utilities in order to
determine the net book value of each Utility. At various times, the applicant either stated or
provided documents indicating that closing took place: a) on April 11, 2014, per the terms of the
Purchase Agreement; b) on August 22, 2014, as stated on the Closing Statement provided in
response to staffs third data request no. 9; or c) on August 27, 2014, as stated in response to
staffs third data request no. 7. Based upon filings in the SARC dockets, the closing date
provided to SWFWMD was given as August 22, 2014.
Third, staff tried to verify the amount of the mortgage payment to the Seller due each month
pursuant to the Purchase Agreement. Depending on the documentation provided this amount
was: a) $4,484.71 per month as stated in Section 4 of the Purchase Agreement; b) $4,500 per
" Based on the 2013 Annual Reports, there were 615 residential customers for Crestridge and 449 residential and 7
general service customers for Holiday Gardens.
A closing date of April 11, 2014, was used by the auditors for each Utility. This date was not contested by Mr.
Smallridge in his subsequent responses to the audits filed on March 18, 2015.
-5-
Docket No. 140176-WU
Issue 1
Date: September 3, 2015
month as stated on the first page of the Promissory Note dated August 22, 2014, provided in
response to staffs first data request no. 4; or c) $4,484.71 per month as stated on the complete
Promissory Note dated August 22, 2014, provided in response to staffs third data request no. 8.
The terms of the Promissory Note state that the monthly payment terms can only be changed
with the written consent of the Seller. No such consent was provided.
Delays in Filing Customer Notices
Rule 25-30.030, F.A.C., requires a legal notice to be sent to state and local government agencies,
nearby water utilities, and customers within seven days of the application, in addition to a
newspaper publication for any transfer. At a utility's request, staff provides a listing for state and
local government agencies and nearby water and wastewater utilities. This notice is allowed to
be a late-filed exhibit in a transfer application, and was noted as such in the applications for both
utilities. However, no such exhibits were provided by the time of staffs first data requests, nor
had requests for the information been made. On October 7, 2014, as part of the first data request,
staff provided examples of a legal notice and a list of entities to notify, including government
agencies and other water utilities in Pasco County. On November 10, 2014, staff received a
request for an electronic copy of the example legal notice, which was provided.
On January 12, 2015, staff sent reminder letters to the applicant that included another copy of the
example legal notice and updated lists of government agencies and water utilities to contact, as
the previous lists had expired. In his January 23, 2015, responses to staffs first data request,
legal notices were provided to staff for each proposed transfer. Staff assisted the applicant with
attempts to resolve several flaws with the leged notices. On February 18, 2015, the applicant filed
flawed notarized affidavits, including multiple incorrect dates for the filing and mailing of the
notices, and both were missing affidavits from the publishing newspapers. On March 11, 2015,
the applicant submitted proper affidavits of mailing customer notices and publications. Based
upon these documents, customers were notified of the transfers on February 6, 2015,
approximately five months after the applications were filed.
Section 367.1214, F.S., requires that a utility notify both the Commission and its customers
before changing a utility's name. Mr. Smallridge has represented that he held meetings with
customers in which he notified them of the name changes and change of ownership of the
utilities prior to September 10, 2014, when the application for transfer was filed. However, the
Commission was not notified of the name changes until the applications for transfer were filed.
Public Interest Standard
Pursuant to Rule 25-30.037(1)(j), F.A.C., the application contains statements describing the
technical and financial ability oif the applicant to provide service to the proposed service area.
Staff believes the Buyer has ample experience in the utility regulatory process. As stated in his
application,'^ the Buyer was appointed to the Citrus County Water and Wastewater Authority,
the local regulatory body for Citrus County, where he served for seven years. The Buyer also
served as the "Class C" representative for the Governors Study Committee for Investor Owned
Water and Wastewater Utility Systems in 2013. He maintains a regular yearly schedule of
training classes through the Florida Rural Water Association and completed the NARUC Utility
Rate School in 2001. He serves as the appointed circuit court receiver for Four Points Utility
Document No. 05046-14, filed September 10,2014, Exhibit 1.
-6-
Docket No. 140176-WU
Issue 1
Date: September 3,2015
Corporation and West Lakeland Wastewater, Inc.,^"^ both of which have been involved in staffassisted rate cases, limited proceedings or certificate transfer cases in the last three years. The
Buyer also owns Pinecrest Utilities, LLC (Pinecrest), which was involved in a staff-assisted rate
case and a tariff amendment to increase miscellaneous service charges in 2012.'^ In total, the
Buyer owns, is the receiver of, or is the manager of, a total of nine Class C water and wastewater
facilities, seven of which are regulated by the Commission.
In 2012, the Commission found that "the application contains documentation to demonstrate that
the Buyer has sufficient personal financial resources to operate and maintain the Pinecrest water
system."^^ At the time the Commission made that determination, Pinecrest was the only system
owned by Mr. Smallridge. Since then, the Buyer purchased Crestridge, Holiday Gardens, ^and
West Lakeland Wastewater, Inc.'^ In addition, Florida Utility Services 1, LLC, which is owned
and operated bv Mr. Smallridge, purchased Charlie Creek Utilities, LLC^^ and East Marion
Utilities, LLC?^
Staffs First Recommendation
Notwithstanding his training and experience with both the Commission and the regulatory
process, Mr. Smallridge initially failed to respond or to comply with Commission rules and
procedures. As a result, on April 23, 2015, staff filed a recommendation that the Commission
deny the requests for transfer of certificates for Crestridge and Holiday Gardens. The primary
issues identified in staffs recommendation addressed failures to respond to data requests,
conflicting information, and delays in filing customer notices. On April 27, 2015, Mr.
Smallridge, through his counsel, filed a request for deferral from the agenda of the May 15,
2015, Commission Conference.
After the deferral, staff made multiple data requests in an attempt to resolve the concerns raised
in the original recommendation. Staff initially had questions regarding the Buyer's financial
ability to maintain and make necessary improvements to the systems currently owned, especially
given the rate at which additional systems were being acquired. Staff reviewed the personal
financial statements and tax returns of the Buyer, as well as the financial statements and tax
returns of Florida Utility Services 1, LLC. The Buyer also provided staff with copies of recent
''' The Buyer also serves as the appointed circuit court receiver for Bimini Bay Utilities, which is not regulated by
the Commission.
Docket Nos. 120269-WU, Application for staff-assisted rate case in Polk County by Pinecrest Utilities, LLC; and
120290-WU, Request for approval of amendment to tariff sheets for miscellaneous service charges in Polk County
bv Pinecrest Utilities, LLC.
'^Order No. PSC-12-0475-PAA-WU, issued September 18,2012, in Docket No. 110311-WU, In re: Applicationfor
transfer ofCertificate No. 588-Wfrom Pinecrest Ranches, Inc., in Polk County, to Pinecrest Utilities, LLC, p.3.
" Docket No. 140176-WU, Application for approval of transfer of Certificate No. 116-W from Holiday Gardens
Utilities, Inc. to Holiday Gardens Utilities, LLC, in Pasco County.
Docket No. 130065-SU, Application for transfer of Certificate No. 515-S in Polk County from West Lakeland
Wastewater, Inc. to West Lakeland Wastewater, LLC. Application was withdrawn at the request of the Utility on
September 11, 2014.
" According to the Utility, an application for original certificate will be filed with the Commission no later than
September 4,2015.
Docket No. 150091-WS, Application for approval of transfer of Certificate Nos. 490-W and 425-S from East
Marion Sanitary Systems, Inc. to East Marion Utilities, LLC, in Marion County.
-7-
Docket No. 140176-WU
Issue 1
Date: September 3,2015
loan documents^' indicating access to additional sources of capital, as well as a three-year capital
expenditure and funding estimate^^ which included the status ofrecent improvements. Additional
details regarding the Buyer's communication with customers as well as specific actions he has
taken to improve the Utility since purchasing it were also provided.
Mr. Smallridge has responded promptly to staffs latest data requests and on the whole the
responses are more complete and noncontradictory. Since the deferral, conversations with Mr.
Smallridge's counsel about staffs areas of concern discussed above have identified conditions
for certification which offer solutions to rectify these concerns. These conditions, as stated
below, have been agreed to by Mr. Smallridge.
Conditional Approval to Address Concerns
Given these unique set of facts, an alternative approach to the denial of the transfer of the
certificate in this case is to approve the transfer of certificate for Holiday Gardens with the
following conditions:
For each Commission-related utility owned directly or indirectly by Michael
Smallridge (Crestridge, Holiday Gardens, West Lakeland, East Marion, Charlie
Creek and Pinecrest):
1.
Pay all RAFs completely and on time.
Rule 25-30.120, FAC; Section 367.145, F.S.
2,
File all annual reports on time. Each annual report filed during the period
these conditions are in effect shall include a notarized affidavit stating that
Michael Smallridge has not purchased, either directly or indirectly, any
additional utilities during the period ending December 31^^ of the last year.
Rule 25-30.110, FAC; Section 367.121(l)(c), (i), F.S.
3
Meet all DEP and Water Management District requirements for operation.
Section 367.11(2), F.S.
4.
Comply completely and in a timely fashion with all Commission staff data
requests associated with any Smallridge utility.
Section 367.121(l)(c), (i), F.S.
21
5.
Michael Smalhidge shall not purchase, either directly or indirectly, any
other Commission-regulated utilities until after December 31,2017.
6.
Michael Smallridge shall file an application for certificate for Charlie
Creek and provide a status report on West Lakeland's efforts to secure the
land on which its wastewater facilities are located by September 4, 2015.
7.
Should Michael Smalhidge fail to meet these requirements, the
Commission staff shall show cause Michael Smallridge as to whether his
certificate(s) should be revoked or further conditions imposed.
Document No. 04001-15, filed June 29, 2015.
Document No. 04718-15, filed July 28, 2015.
-8-
Docket No. 140176-WU
Issue 1
Date: September 3, 2015
These conditions are either based on the Commission's rules and authorizmg statutes or Mr.
Smallridge's current business plans for each of the six Commission-regulated utilities that he
owns either directly or indirectly. Both Mr. Smallridge and staff agree that the proposed
conditions will allow the Commission to closely monitor Mr. Smalhidge's compliance with the
financial responsibilities associated with providing adequate service to the customers of Holiday
Gardens. For that reason, staff recommends that these conditions should be imposed on this
certification in the public interest.
Section 367.045(5)(a), F.S., states that "[t]he commission may grant or amend a certificate of
authorization, in whole or in part or with modifications in the public interest." [emphasis added]
The Commission has included conditions in prior transfer of certificate cases. ^The conditions
proposed for this transfer are directly related to the standards of technical and financial ability to
provide service to the certificated territory mandated by Section 367.071(1), F.S. A decision that
allows the Utility to proceed, but closely monitors its compliance with its service responsibilities,
is a "modification in the public interest."
Other Matters
If the conditions above are approved, the amended application would be considered within
compliance with the governing statues and rules concerning an application for transfer of
certificate. The closing date of the sales contract, based upon the most recent data response,
should be August 27, 2014. Pursuant to Section 367.071(1), F.S., the sales contract was made
contingent upon Commission approval.
Noticing Provisions
As noted in staffs original recommendation, customers were notified of the transfer on February
6, 2015. No objections to the notice have been filed with the Commission and the time for filing
objections, based on the late notice date, has expired. A description of the territory being
transferred is appended to this recommendation as Attachment A. Recorded copies of warranty
deeds have been provided as part of responses to staffs data requests which are evidence that
Holiday Gardens owns the land on which the water treatment facilities are located, pursuant to
Rule 25-30.037(2)(q), F.A.C.
Sales Contract
Pursuant to Rule 25-30.037(2)(g), F.A.C., the application contains a copy of the sales contract,
which includes the purchase price, terms of payment, and a list of the assets purchased. As noted
above, the purchase contract was for the certificated utilities of Holiday Gardens and Crestridge
and non-utility assets for each service territory for waste disposal and street lighting. Based upon
the amended application. Holiday Gardens was acquired for $25,544 of the $450,000 combined
purchase price.
Pursuant to Rule 25-30.037(2)(h), F.A.C., the contract addressed customer deposits, customer
advances, leases, and other matters. According to the application, there are no leases, developer
agreements, or guaranteed revenue contracts associated with the transfer.
Order No. PSC-98-0043-FOF-WS, issued January 6, 1998, in Docket No. 951026-WS, In re: Application for
transfer of Certificates Nos. 361-W and 316-S in Citrus County from J & J Water and Sewer Corporation to
Meadows Utility Company, Inc.
-9-
Docket No. 140176-WU
Issue 1
Date: September 3, 2015
Accounting Standards
Mr. Smallridge is aware that Holiday Gardens' books and records must be maintained in
accordance with the National Association of Regulatory Utility Commissioners (NARUC)
Uniform System of Accounts (USOA).
Other Regulatory Entities
The Florida Department of Environmental Protection (DEP) sets requirements for the water
system. During its March 2015 Sanitary Survey, several deficiencies were found with the water
system, but these have been resolved and the system is in compliance at this time. The Utility is
in the process of applying for renewal of its water use permit from SWFWMD. At this time, Mr.
Smallridge has not yet paid his filing fee and has outstanding data requests. Mr. Smallridge has
requested and received a time extension for filing this information until October 2,2015.
Rates and Charges
The Utility's rates and charges were last approved in a staff-assisted rate case in 1993.^"^ The
rates were subsequently amended to reflect a four-year rate reduction required by Section
367.0816, F.S., in 1997 and numerous price indexes. In 2014, Holiday Gardens Utilities, Inc.
was approved for an after-hours normal reconnection charge, a convenience charge, a late
payment charge, a meter tampering charge, and initial customer deposits.^^ The Utility is built
out and has no approved service availability charges other than a meter installation charge. The
Utility's existing rates are shown on Schedule No. 2. Rule 25-9.044(1), F.A.C., provides that, in
the case of a change of ownership or control of a utility, the rates, classifications, and regulations
of the former owner must continue unless authorized to change by this Commission. Therefore,
staff recommends that the Utility's existing rates and charges remain in effect until a change is
authorized by this Commission in a subsequent proceeding.
Annual Reports and Regulatory Assessment Fees
Staff has verified that the Utility is current on the filing of annual reports and regulatory
assessment fees (RAFs) through December 31,2014. The Buyer will be responsible for filing the
Utility's annual reports and paying RAFs for 2015 and all fiiture years.
Conclusion
Staff recommends that with the conditions discussed herein the transfer is in the public interest
and should be approved effective the date of the Commission vote. The territory being
transferred is described in Attachment A. The resultant order should serve as Holiday Gardens
Utilities, LLC's Certificate No. 116-W and be retained. The existing rates and charges should
remain in effect imtil a change is authorized by the Commission in a subsequent proceeding. The
tariffs reflecting the transfer should be effective for services rendered or connections made on or
after the stamped approval date on the tariffs, pursuant to Rule 25-30.475, F.A.C. Holiday
Gardens Utilities, LLC should be responsible for annual reports and RAFs for 2015 and fiiture
years.
Order No. PSC-93-0013-FOF-WU, issued January 5, 1993, in Docket No. 920418-WU, In re: Application for
staff-assisted rate case by Holiday Gardens Utilities, Inc. in Pasco County.
Order No. PSC-14-0017-TRF-WU, issued January 6, 2014, in Docket No. 130250-WU, In re: Applicationfor
approval ofmiscellaneousservice charges in Pasco County, by Holiday Gardens, Inc.
-10-
Docket No. 140176-WU
Issue 2
Date: September 3, 2015
Issue 2: What is the appropriate net book value for Holiday Garden's water system for transfer
purposes and should an acquisition adjustment be approved?
Recommendation: The net book value of Holiday Gardens' water system for transfer
purposes should be $19,380 as of August 27, 2014. An acquisition adjustment should not be
included in rate base. Within 90 days of the date of the final order, Holiday Gardens should be
required to provide general ledger balances which show its books have been updated to reflect
the Commission-approved balances as of August 27, 2014. The adjustments should be reflected
in the Utility's 2015 Annual Report when filed. (T. Brown, Norris)
Staff Analysis: Rate base was last established for the Utility, as of March 31, 1992.^^ The
utility has iso filed for a staff-assisted rate case in Docket No. 140177-WU. The purpose of
establishing net book value (NBV) for transfers is to determine whether an acquisition
adjustment should be approved. The NBV does not include normal ratemaking adjustments for
used and useful plant or working capital. The utility's NBV has been updated to reflect balances,
as of August 27, 2014. Staffs recommended NBV, as described below, is shown on Schedule 1.
Utility Plant in Service (UPlS)
The Utility's general ledger reflected a UPIS balance of $187,111, as of August 27, 2014. Audit
staff reviewed UPIS additions since the last rate case proceeding in 1992 to calculate a UPIS
balance that totals $181,038. As a result, UPIS should be decreased by $6,073 to reflect a UPIS
balance of $181,038, as of August 27, 2014. Staffs recommended UPIS balance is shown on
Schedule 1,
Land
The Utility's general ledger reflected a land balance of $3,059, as of August 27, 2014. In Order
No. 21920, issued December 14, 1988, the Commission established the value of the land to be
$2,414. There have been no additions to land purchased since Order No. 21920 was issued.
Therefore, staff recommends that land be reduced by $645 to reflect land of $2,414, as of August
27, 2014. Staffs recommended land balance is shown on Schedule 1.
Accumulated Depreciation
The Utility's general ledger reflected an accumulated depreciation balance of $81,170, as of
August 27, 2014, Audit staff calculated that the appropriate accumulated depreciation balance to
be $164,072. As a result, accumulated depreciation should be increased by $82,902 to reflect an
accumulated depreciation balance of $164,072, as of August 27, 2014. Staffs recommended
accumulated depreciation balance is shown on Schedule 1.
Contributions-in-Aid-of-Construction (CIAC) & Accumulated Amortization of CIAC
As of August 27, 2014, the Utility's general ledger reflected balances of $85,630 for CIAC and
$85,630 for accumulated amortization of CIAC. No adjustments have been identified by staff
Therefore, staff reconmiends a CIAC balance of $85,630 and accumulated amortization of CIAC
balance of $85,630, as of August 27, 2014. Staffs recommended balances for CIAC and
accumulated amortization of CIAC are shovm on Schedule 1.
Order No. 93-0013-FOF-WU, issued January 5, 1993, in Docket No. 920418-WU, In re: Application for a staffassisted rate case by Holiday Gardens Utilities, Inc. in Pasco County.
-11-
Docket No. 140176-WU
Issue 2
Date: September 3,2015
Net Book Value
The Utility's general ledger reflected NBV of $109,000. Based on the adjustments described
above, staff recommends that the NBV for the Utility is $19,380, as of August 27, 2014. Staffs
recommended NBV and the NARUC USOA balances for UPIS and accumulated depreciation
are shown on Schedule 1, as of August 27, 2014.
Acquisition Adjustment
An acquisition adjustment results when the purchase price differs from the NBV of the assets at
the time of the acquisition. Of the total contract purchase price of $450,000, the Buyer allocated
$24,544 to Holiday Gardens and $60,694 to Crestridge Utilities, LLC, a sister utility. The
balance ofthe purchase price, $364,762, is allocated to garbage and street lighting operations.^^
As stated above, staff recommends that the appropriate NBV to be $19,380. Pursuant to Rule 2530.0371, F.A.C., a positive acquisition adjustment may be appropriate when the purchase price is
greater than the NBV, and a negative acquisition adjustment may be appropriate when the
purchase price is less than NBV. However, pursuant to Rule 25-30.0371(2), a positive
acquisition adjustment shall not be included in rate base unless there is proof of extraordinary
circumstances. While the Buyer did request a positive acquisition adjustment in response to
staffs audit report, it was subsequently withdrawn.^^ Accordingly, staff recommends that no
positive acquisition adjustment be approved.
Conclusion
Based on the above, staff recommends that the NBV for transfer purposes is $19,380, as of
August 27, 2014. No acquisition adjustment should be included in rate base. Within 90 days of
the date of the final order, the Buyer should be required to provide general ledger balances which
show its books have been updated to reflect the Commission-approved balances, as of August
27, 2014. The adjustments should be reflected in the Utility's 2015 Annual Report when filed.
Document No 01503-15, filed March 18,2015.
Document Nos. 00882-15 and 01503-15, filed February 9,2015, and March 18,2015, respectively.
-12-
Docket No. 140176-WU
Issue 3
Date: September 3,2015
Issue 3: Should this docket be closed?
Recommendation: If no protest to the proposed agency action is filed by a substantially
affected person within 21 days of the date of the order, a consummating order should be issued
and the docket should be closed administratively after Holiday Gardens has provided proof that
its general ledgers have been updated to reflect the Commission-approved balances, as of August
27,2014. (Brownless)
Staff Analysis: If no protest to the proposed agency action is filed by a substantially affected
person within 21 days of the date of the order, a consummating order should be issued and the
docket should be closed administratively after Holiday Gardens has provided proof that its
general ledgers have been updated to reflect the Commission-approved balances, as of August
27,2014.
-13-
Docket No. 140176-WU
Attachment A
Date: September 3, 2015
Page 1 of 2
Holiday Gardens Utilities, LLC
Water Territory
Pasco County
In Township 26 South, Range 16 East, Section 29
Commence at the Southwest comer of said Section 29 for a Point of Beginning.
Thence run North 0 degrees 07 minutes 03 seconds East 1668.59 feet;
thence South 89 degrees 40 minutes 50 seconds East 2642.58 feet;
thence South 0 degrees 02 minutes 15 seconds West 667.08 feet;
thence North 89 degrees 41 minutes 18 seconds West 440.58 feet;
thence South 0 degrees 03 minutes 03 seconds West 832.70 feet;
thence North 89 degrees 42 minutes 02 seconds West 280 feet;
thence South 0 degrees 03 minutes 03 seconds West 168 feet;
thence North 89 degrees 02 seoconds West 100 feet;
thence North 0 egrees 03 minutes 03 seconds East 168 feet;
thence North 89 degrees 42 minutes 02 seconds West 501.55 feet;
thence North 0 degrees 04 minutes 39 seconds East 832.88 feet;
thence North 89 degrees 41 minutes 18 seconds West 440.58 feet;
thence South 0 degrees 05 minutes 27 seconds West 1000.97;
thence North 89 degrees 42 minutes 02 seconds West 881.63 feet to the Point of Beginning.
And
A portion of the Southwest Quarter of Section 29, Township 26 South, Range 16 East being
more particularly described as follows:
Commencing at the SE comer of the SW quarter of said Section 29 for a Point of Beginning, run
North 89 degrees 42 minutes 02 seconds West along said section line 1322.44 feet, thence North
00 degrees 00 minutes 39 seconds East 168 feet to a point on the boundary of the present
territory served; thence the following said boundary in successful courses and distances as
follows:
South 89 degrees 42 minutes 2 seconds East 501.55 feet;
South 0 degrees 3 minutes 3 seconds West 168 feet;
South 89 degrees 42 minutes 2 seconds East 100 feet;
North 0 degrees 3 minutes 3 seconds East 168 feet;
South 89 degrees 42 minutes 2 seconds East 280 feet;
North 0 degrees 3 minutes 3 seconds East 832.07 feet;
South 89 degrees 42 minutes 18 seconds East 440.58 feet;
Thence departing boundary of said present territory served; South 0 degrees 02 minutes 15
seconds West 1000.61 feet retuming to the Point of Beginning.
And
-14-
Docket No. 140176-WU
Attachment A
Date: September3,2015
Page 2 of 2
The Southwest Quarter of Section 30, Township 26, Range 16 East: From the Southeast Quarter
of said Section 30, also the Point of Beginning; along the Southerly line of said Section west 879
feet; thence North 1165 feet; thence East 879 feet; thence South 1165 feet returning to the Point
of Beginning.
-15-
Docket No. 140176-WU
Attachment B
Date: September 3,2015
FLORIDA PUBLIC SERVICE COMMISSION
authorizes
Holiday Gardens Utilities, LLC
pursuant to
Certificate Number 116-W
to provide water service in Pasco 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
5675
03/08/1973
72590-W
Original Certificate
PSC-93-1530-FOF-WU
*
10/19/1993
*
930164-WU
140176-WU
Amendment
Transfer of Certificate
*Order Numbers and dates to be provided at time of issuance.
-16-
Docket No. 140176-WU
Schedule 1
Date: September 3, 2015
Page 1 of 3
Holiday Gardens Utilities, LLC
Water System
Schedule of Net Book Value as of August 27,2014
Staff
Balance Per
Description
Utility Plant In Service
Land
Accumulated Depreciation
CIAC
Amortization of CIAC
Net Book Value
Utility
$187,111
3,059
(81,170)
Adjustments
($6,073) A
(645) B
(82,902) C
(85,630)
0
85,630
0
$109,000
-17-
r$89.620^
Recommended
$181,038
2,414
(164,072)
(85,630)
85.630
$19,380
Docket No. 140176-WU
Schedule 1
Date: September 3, 2015
Page 2 of 3
Explanation of Staff's Recommended
Adjustments to Net Book Value as of August 27,2014
Water System
Explanation
Amount
A. Utility Plant In Service
To reflect appropriate amount of utility plant in service.
($6.073^
B. Land
To reflect appropriate amount of land.
($645-1
C. Accumulated Depreciation
To reflect appropriate amount of accumulated depreciation.
Total Adjustments to Net Book Value as of August 27,2014.
-18-
($89.620^
Docket No. 140176-WU
Schedule 1
Date: September 3, 2015
Page 3 of 3
Holiday Gardens Utilities, LLC
Water System
Schedule of Staff Recommended Account Balances as of August 27,2014
Accumulated
Account
330
Description
Structures & Improvements
Wells and Springs
Supply Mains
Power Generating Equipment
Pumping Equipment
Water Treatment Equipment
Dist. Reservoirs & Standpipes
331
Transmission & Dist. Mains
333
Services
334
Meters & Meter Installations
335
Hydrants
Office Equipment & Furniture
Power Operated Equipment
No.
304
307
309
310
311
320
340
345
Total
-19-
431
Depreciation
($5,844)
(11,612)
(3,411)
(1,324)
(14,459)
(2,271)
(5,495)
(64,397)
(21,801)
(27,973)
(4,274)
(431)
780
(780)
UPIS
$5,844
11,612
5,595
1,323
22,152
2,271
11,328
64,397
21,801
28,386
5,120
Docket No. 140176-WU
Schedule 2
Date: September 3, 2015
Holiday Gardens Utilities, Inc.
Monthly Water Rates
Residential and General Service
Base Facility Charge by Meter Size
5/8" X 3/4"
$7.64
3/4"
1"
1-1/2"
2"
3"
4"
6"
$11.45
$19.14
$38.23
$61.22
$122.45
$191.29
$382.59
Charge per 1,000 Gallons - Residential and General Service
$1.35
Initial Customer Deposits
Residential - 5/8" X 3/4"
$24.00
General Service - All Meters
2 times the average estimated bill
Miscellaneous Service Charges
Business Hours
After Hours
$15.00
$15.00
$15.00
$10.00
N/A
$30.00
N/A
N/A
Initial Connection Charge
Normal Reconnection Charge
Violation Reconnection Charge
Premises Visit Charge (in lieu of
disconnection)
Convenience Charge
Late Payment Charge
Meter Tampering Charge
$2.50
$5.25
$50.00
Service Availability Charges
Meter Installation Charge
5/8" X 3/4"
All other meter sizes
$75.00
Actual Cost
-20-
Item 7
FILED SEP 03, 2015
DOCUMENT NO. 05511-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
Capital Circle Office Center • 2540 Siiumard Oak Boulevard
Tallahassee, Florida 32399-0850
-M-E-M-O-R-A-N-D-U-M-
DATE:
September 3, 2015
TO:
Office of Commission Clerk (-StaufferW
FROM:
j
Division ofEngineering^(Hltrj^g)
Division ofAccounting and Finance (Fielder, l^ajdCNorris)
Division ofEconomics (Thompson)[C:j6^^ (3^
AUA
Office of the General Counsel (Villafi-ate)
RE:
Docket No. 150113-WS - Application for transfer of majority organizational
control of Orange Blossom Utilities, Inc., holder of Certificate Nos. 639-W and
548-S in Sumter County, from Nancy Steinmetz Roach to Jonathan S. Dean.
AGENDA: 09/15/15 - Regular Agenda - Tariff Filing for Issue 2 - Interested Persons May
Participate
COMMISSIONERS ASSIGNED:
All Commissioners
PREHEARING OFFICER:
Edgar
CRITICAL DATES:
10/27/15 (60-Day Suspension Date)
SPECIAL INSTRUCTIONS:
None
Case Background
Orange Blossom Utilities, Inc. (Orange Blossom or Utility) is a water and wastewater utility
serving approximately 32 customers in Sumter County. Original Certificate Nos. 639-W and
548-S were approved by Order No. PSC-07-0951-FOF-WS, issued November 29, 2007.
On April 2, 2015, an application for authority for transfer of majority organizational control was
filed by Orange Blossom. On August 27, 2015, Orange Blossom requested that non-sufficient
funds (NSF) charges be added to the water and wastewater tariffs. Staff identified several
deficiencies in a letter to Orange Blossom on May 19, 2015. The Utility's response on June 23,
Docket No. 150113-WS
Date: September 3,2015
2015, satisfied these deficiencies. The Commission has jurisdiction in this case pursuant to
Section 367.071, Florida Statutes (F.S.).
-2-
Docket No. 150113-WS
Date: September 3, 2015
Issue 1
Discussion of Issues
Issue 1: Should the application for transfer of majority organizational control of Orange
Blossom Utilities, Inc. in Sumter County from Nancy Steinmetz Roach to Jonathan S. Dean be
approved?
Recommendation: Yes. The transfer of majority organizational control from Nancy
Steinmetz Roach to Jonathan S. Dean is in the public interest and should be approved effective
the date of the Commission vote. The resultant order should serve as the water and wastewater
certificates, with the territory described in Attachment A. The existing rates and charges should
remain in effect until a change is authorized by the Commission in a subsequent proceeding. The
tariffs reflecting the transfer should be effective for services rendered or connections made on or
after the stamped approval date on the tariffs, pursuant to Rule 25-30.475(1), Florida
Administrative Code, (F.A.C.). (Hill, Frank, Thompson)
Staff Analysis: This application is for the transfer of majority organizational control of
Orange Blossom Utilities, Inc., from Nancy Steinmetz Roach to Jonathan S. Dean (Buyer).
Based on staffs review, the application is in compliance with the governing statue. Section
367.071, F.S., and Rule 25-30.037(3), F.A.C., concerning applications for transfer of majority
organizational control.
Noticing, Territory, and Ownership
The applicants provided proof of compliance with the noticing provisions set forth in Section
367.071, F.S., and Rule 25-30.030, F.A.C. No objections to the transfer were filed with the
Commission, and the time for doing so has expired. The notice contains a description of the
territory for Orange Blossom, which is appended to this recommendation as Attachment A. The
application does not involve transfer of the facilities and Orange Blossom will continue to own
the land where the water and wastewater treatment plants are currently located. The application
includes evidence of this deed pursuant to Rule 25-30.037(3)(i), F.A.C.
Technical and Financial Ability
Pursuant to Rule 25-30.037(3)(f), F.A.C., the application contains statements describing the
technical and financial ability of the applicant to provide service. The transfer application states
that the Buyer has sufficient financial assets to ensure the continuing operation of the Utility.
Staff reviewed the financial statements of the Buyer* and believes hehas the financial capability
to provide any necessary funding. According to the application, the public interest is served by
the continuity of management in the Utility as the shares of the majority owner are purchased by
the Buyer, who has been a shareholder of the corporation since its inception. Based on the
information above, staff recommends that the Buyer has the technical and financial capability to
provide service to the existing service territory.
Document No. 03862-15, p. 2.
-3-
Docket No. 150113-WS
Issue 1
Date: September 3, 2015
Rates and Charges
The Utility's rates and charges were last approved in an original certificate docket in 2007.^
Additionally, since the original certificate, Ae Utility has received three index price increases.
The Utility's existing rates and charges are shown on Schedule No. 1 for water and Schedule No.
2 for wastewater. Rule 25-9.044(1), F,A.C., provides that, in the case of a change of ownership
or control of a utility, the rates, classifications, and regulations of the former owner must
continue unless authorized to change by this Commission. Therefore, staff recommends that the
Utility's existing rates and charges remain in effect until a change is authorized by this
Commission in a subsequentproceeding. The tariffs reflecting the transfer should be effective for
services rendered or connections made on or after the stamped approval date on the tariffs,
pursuant to Rule 25-30.475(1), F.A.C.
Conclusion
Based on the above, staff recommends that the transfer of majority organizational control fi*om
Nancy Steinmetz Roach to Jonathan S. Dean is in the public interest and should be approved
effective the date of the Commission vote. The resultant order should serve as the water and
wastewater certificates, with the territory described in Attachment A. The existing rates and
charges should remain in effect until a change is authorized by the Commission in a subsequent
proceeding. The tariffs reflecting the transfer should be effective for services rendered or
connections made on or after the stamped approval date on the tariffs, pursuant to Rule 2530.475(1), F.A.C.
^ Order No. PSC-08-0255-PAA-WS, issued April 24, 2008, in Docket No. 070391-WS, In re: Application for
certificates to provide water and wastewater service in Sumter County by Orange Blossom Utilities, Inc.
-4-
Docket No. 150113-WS
Issue 2
Date: September 3,2015
Issue 2: Should Orange Blossom be authorized to collect Non-Sufficient Funds (NSF)
charges?
Recommendation: Yes. Staff recommends that the Utility revise its tariffs to reflect the NSF
charges currently set forth in Sections 832.08(5) and 68.065(2), F.S. The NSF charges should be
effective on or siter the stamped approval date on the tariff sheets pursuant to Rule 25-30,475(1),
F.A.C. Furthermore, the charges should not be implemented until staff has approved the
proposed customer notice. The Utility should provide proof of the date the notice was given
within 10 days of the date of the notice. (Thompson)
Staff Analysis: Section 367.091, F.S., requires that rates, charges, and customer service
policies be approved by the Commission. The Commission has authority to establish, increase, or
change a rate or charge. Staff recommends that the Utility should be authorized to collect NSF
charges consistent with Sections 832.08(5) and 68.065(2), 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 Sections 832.08(5) and 68.065(2), F.S., the following NSF charges may be assessed:
1.
$25, if the face value does not exceed $50,
2.
$30, ifthe face value exceeds $50 but does not exceed $300,
3.
$40, if the face value exceeds $300,
4.
or five percent of the face amount of the check, whichever is greater.
Approval of NSF charges is consistent with prior Commission decisions.^ Furthermore, NSF
charges place the cost on the cost-causer, rather than requiring that the costs associated with the
return of the NSF checks be spread across the general body of ratepayers. As such, staff
recommends that the Utility revise its tariffs to reflect the NSF charges currently set forth in
Sections 832.08(5) and 68.065(2), F.S. The NSF charges should be effective on or after the
stamped approval date on the tariff sheets, pursuant to Rule 25-30.475(1), F.A.C. In addition, the
NSF charges should not be implemented until staff has approved the proposed customer notice.
The Utility should provide proof ofthe date the notice was given wi^n 10 days ofthe date of
the notice.
' Order No. PSC-14-0198-TRF-SU, issued May 2, 2014, in Docket No. 140030-SU, In re: Requestfor approval to
amend Miscellaneous Service charges to include all NSF charges by Environmental Protection Systems of Pine
Island, Inc., and Order No. PSC-13-0646-PAA-WU, issued November 1, 2013, in Docket No. 130025-WU, In re:
Applicationfor increase in water rates in Highlands County by Placid Lakes Utilities, Inc.
-5-
Docket No. 150113-WS
Issue 3
Date: September 3,2015
Issue 3: Should this docket be closed?
Recommendation: Yes. If the Commission approves staffs recommendation in Issues 1 and
2, the tariffs should become effective on September 15, 2015. If a protest is filed within 21 days
of the issuance of the order, the tariffs should remain in effect, with any revenues held subject to
refund, pending resolution of the protest. If no timely protest is filed, this docket should be
closed upon the issuance of a consummating order. (Villafrate)
Staff Analysis: If the Commission approves staffs recommendation in Issues 1 and 2, the
tariffs should become effective on September 15, 2015. If a protest is filed within 21 days of the
issuance of the order, the tariffs should remain in effect, with any revenues held subject to
refund, pending resolution of the protest. If no timely protest is filed, this docket should be
closed upon the issuance of a consummating order.
-6-
Docket No. 150113-WS
Attachment A
Date: September 3,2015
Page 1 of 3
Orange Blossom Utilities, Inc.
Water and Wastewater Service Area
Sumter County
Section 15, Township 18 South, Range 23 East
Begin at a point 1442.39 feet East of the Northwest comer of Section 15, Township 18 South,
Range 23 East, Sumter County, Florida; thence run S. 89°59'25" E., 1442.24 feet; thence run S.
45°03'32" E., 49.56 feet; thence run S. 00''07'42" E., 14.99 feet; thence run S. 89°59'45" E., 14.99
feet; thence run S. 45'03'32" E., 14.16 feet; thence run S. 00°07'39" E., 1271.93 feet; thence run
S. 89'55'20" W., 661.67 feet; thence run S. 00°05'52" E., 609.07 feet to the Northerly right-of-
way line of County Road No. 466; thence run along said Northerly right-of-way the following
courses: N. 45°43'48" W., 96.20 feet to the point of curvature of a curve concave Southwesterly
having a radius of 1960.08 feet and a central angle of 26°40'29"; thence run along the arc of said
curve 912.54 feet said arc having a chord bearing of N. 59°08'15" W.; and a chord distance of
904.32 feet; thence departing said right-of-way run N. 00°0r25" E., 1411.10 feet to the point of
beginning.
-7-
Docket No. 150113-WS
Attachment A
Date: September 3, 2015
Page 2 of 3
FLORIDA PUBLIC SERVICE COMMISSION
Authorizes
Orange Blossom Utilities, Inc.
Pursuant to
Certiflcate Number 639-W
to provide water service in Sumter 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 Tvpe
PSC-07-0951-FOF-WS
11/29/2007
070391-WS
PSC-07-0391-PAA-WS
04/24/2008
070391-WS
*
150113-WS
Original Certificate
Initial Rates and Charges
Transfer Majority
Organizational Control
*Order Number and date to be provided at time of issuance.
-8-
Docket No. 150113-WS
Attachment A
Date: September 3, 2015
Page 3 of 3
FLORIDA PUBLIC SERVICE COMMISSION
Authorizes
Orange Blossom Utilities, Inc.
Pursuant to
Certificate Number 548-S
to provide wastewater service in Sumter Coimty 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-07-0951-FOF-WS
11/29/2007
070391-WS
PSC-07-0391-PAA-WS
04/24/2008
070391-WS
*
*
150113-WS
Original Certificate
Initial Rates and Charges
Transfer Majority
Organizational Control
'^Order Number and date to be provided at time of issuance.
-9-
Docket No. 150113-WS
Schedule 1
Date: September 3,2015
Page 1 of2
Orange Blossom Utilities, Inc.
Monthly Water Rates
Residential and General Service
Base Facility Charge by Meter Size
5/8" X 3/4"
6"
$15.48
$23.22
$38.71
$77.41
$123.86
$270.95
$464.47
$967.65
8"
$1,393.40
3/4"
1"
1 1/2"
2"
3"
4"
Charge Per 1,000 gallons
$1.43
Initial Customer Deposit
Residential Service and General Service
5/8" X 3/4"
$52.00
Miscellaneous Service Charges
Business Hours
After Hours
$30.00
$30.00
$30.00
$30.00
$40.00
$40.00
$40.00
$40.00
Initial Connection Charge
Normal Reconnection Charge
Violation Reconnection Charge
Premises Visit Charge (in lieu of
disconnection)
Late Payment Charge
NSF Check Charge
$6.00
Pursuant to Florida Statute 832.08(5)
-10-
Docket No. 150113-WS
Schedule 1
Date: September 3,2015
Page 2 of 2
Orange Blossom Utilities, Inc.
Water Service Availability Charge
Main Extension Charge
Residential - Per ERC
All Other per gallon
$1,440.00
$4.80
Meter Installation Charge
5/8" X 3/4"
$150.00
Over 5/8" x 3/4"
Actual Cost
Plant Capacity Charge
Residentii - Per ERC
$560.00
All Other per gallon
$1.87
-11-
Docket No. 150113-WS
Schedule 2
Date: September 3,2015
Page 1 of2
Orange Blossom Utilities, Inc.
Monthly Wastewater Rates
Residential Service
Base Facility Charge - All Meter Sizes
$26.47
Charge Per 1,000 gallons
10,000 gallon cap
$3,13
General Service
Base Facility Charge by Meter Size
$26.47
$39.72
$66.19
$132.39
$211.82
$463.37
$794.34
5/8" X 3/4"
3/4"
1"
1 1/2"
2"
3"
4"
$1,654.88
$2,383.03
6"
8"
Charge Per 1,000 gallons
$3.13
Initial Customer Deposit
Residential Service and General Service
5/8" X 3/4"
$102.00
Miscellaneous Service Charges
Initial Connection Charge
Normal Reconnection Charge
Violation Reconnection Charge
Premises Visit Charge (in lieu of
disconnection)
Late Payment Charge
NSF Check Charge
Business Hours
After Hours
$30.00
$30.00
$40.00
$40.00
Actual Cost
Actual Cost
$30.00
$40.00
$6.00
Pursuant to Florida Statute 832.08(5)
-12-
DocketNo. 150113-WS
Schedule2
Date: September 3, 2015
Page 2 of 2
Orange Blossom Utilities, Inc.
Wastewater Service Availability Charges
Main Extension Charge
Residential - Per ERC
$4,450.00
All Other per gallon
$14.83
Plant Capacity Charge
Residential - Per ERC
$ 1,050.00
All Other per gallon
$3.50
-13-
Item 8
FILED SEP 03, 2015
DOCUMENT NO. 05512-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
CAPITAL CIRCLE OFFICE CENTER • 2540 SHUMARD OAK BOULEVARD
TALLAHASSEE, FLORIDA 32399-0850
-M-E-M-0-R-A-N-D-U-M(/)
DATE:
TO:
FROM:
RE:
..,
rr1
September 3, 2015
Office of Commission Clerk (Stauffer)
A. o.
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Division of Economics (Ollila)
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Office of the General Counsel (Mapp) ~ ~ 0
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Docket No. 150 159-EI - Petition for approval of tariff revisions to implement
customer relationship management (CRM) project, by Tampa Electric Company.
AGENDA: 09115115 -Regular Agenda - Tariff Filing- Interested Persons May Participate
COMMISSIONERS ASSIGNED:
All Commissioners
PREHEARING OFFICER:
Administrative
CRITICAL DATES:
60-Day Suspension Date Waived by the Company Unti l
the 9115115 Agenda Conference
SPECIAL INSTRUCTIONS:
Place Docket No. 150160-GU adjacent to this docket
Case Background
On June 25, 2015, Tampa Electric Company (Tampa Electric or the Company) fi led a petition
for approval of tariff revisions related to the implementation of Tampa Electric's and Peoples
Gas System' s (Peoples) Customer Relationship Management (CRM) project. Tampa Electric and
Peoples are both owned by TECO Energy. Tampa Electric seeks approval of modifications to its
levelized payment plan, deposit, and summary billing tariff provisions so as to align these
provisions with those proposed by Peoples in Docket No. 150 160-GU.
Currently, Tampa Electric and Peoples are served by legacy mainframe customer billing and
meter information systems. The CRM project will update and modernize these systems with new
hardware and software. Tampa Electric requests approval of its proposed tariff revisions to be
effective on the transition date to the CRM system, expected to occur on or about July 5, 2016.
Docket No. 150159-EI
Date: September 3, 2015
Tampa Electric and Peoples met with staff and the Office of Public Counsel in noticed meetings
on March 31 and June 1, 2015, to provide an overview of the CRM project. Staff issued one data
request. On Augtist 19, 2015, Tampa Electric filed a corrected tariff page to correct an
inadvertent omission. The proposed tariff pages are contained in Attachment 1. The tariff pages
are in legislative format in order to display the proposed changes in type-and-strike. The
Commission has jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and
366.06, Florida Statutes.
-2-
Issue 1
Docket No. 150159-EI
Date: September 3, 2015
Discussion of Issues
Issue 1: Should the Commission approve Tampa Electric's proposed tariff revisions?
Recommendation: Yes. The Commission should approve Tampa Electric's proposed tariff
revisions effective on the transition date of the CRM system, expected to occur on or about July
5, 2016. No later than 30 days prior to the transition date the Company should notify the
Commission in writing of the actual.transition date. (Ollila)
Staff Analysis: Tampa Electric proposes changes to its levelized payment plan, deposits, and
summary billing. Each of the proposed changes is discussed below.
Proposed Tariff Changes
Levelized Payment Plan
The Levelized Billing Plan is an option available to residential and small commercial customers.
It is designed to levelize or smooth out the peaks and valleys in monthly payments for metered
electric service. The levelized monthly payment is calculated based on average monthly
consumption, including the current month, for the most recent 12 full months. The levelized
amounts, which are adjusted every month, are less volatile than standard billing amounts;
however, they are rarely the same for two or more consecutive months. According to Tampa
Electric, most customers expect the same payment every month from a bu~get billing-type plan.
The Company further states that continual monthly adjustments to the payment make the plan
more difficult for consumers to understand and for Tampa Electric's customer service
representatives to explain.
The Company proposes replacing the Levelized Payment Plan with the Budget Billing Plan,
consistent with Peoples' proposed plan in Docket No. 150160-GU. Under the proposed plan, a
monthly budgeted amount will be calculated by taking the average of the previous 12 months of
electric billing amounts, including applicable taxes and fees. On the anniversary date of the
customer's election to participate in the proposed plan, the monthly payment amount will be
replaced with a recalculated amount based on the most current 12-month period. Any deferred
balance will be trued-up by crediting next month's bill with a deferred credit or by applying 1/12
of a deferred debit to the newly calculated monthly payment amount. The Company may also
recalculate the amount on a date other than the anniversary at the customer's request or at its
quarterly review. If the recalculated amount differs by 15 percent or more from the budget bill,
the budgeted amount may change to the recalculated amount.
The proposed Budget Billing Plan has less restrictive qualifying criteria than the current plan.
Under the Levelized Billing Plan a customer must not have a balance due in order to participate,
which means that the customer can only sign up for the plan between the time the current bill is
paid and the next bill is received. Tampa Electric proposes that the qualification be changed so
that customers without an overdue amount and no pending service disconnection for nonpayment will be eligible.
Deposits
Tampa Electric proposes to add an option for residential customers that will verify credit through
an external/independent credit monitoring service to determine if the security deposit may be
- 3-
Issue 1
Docket No. 150159-EI
Date: September 3, 2015
waived. According to Tampa Electric, the credit verification will have no impact on a customer's
credit score. The Company has made this voluntary option available to customers in the past;
however, the option was not described in the tariff.
Summary Billing Plan
Tampa Electric currently offers a summary billing plan to customers with ten or more accounts
and no bills in arrears. Under the plan, customers receive a single date for the billing and
payment of the accounts included in the plan. The current plan requires that the accounts
included in summary bills be separated into groups and that the groups be billed once a month.
According to the Company, most plan customers prefer to receive one bill per month; therefore,
Tampa Electric proposes that the separation of accounts into groups be an option, rather than a
requirement. The current plan also states that a customer's failure to pay within ten days from the
mailing date of the summary bill will result in the customer's removal from the plan; the
proposed plan replaces "will" with "may." Tampa Electric avers that this program is mutually
beneficial to the customer and Company; therefore, Tampa Electric will work with customers to
keep them on the program.
Communications Plan
Tampa Electric plans to carry out what it describes as a comprehensive communications plan so
that customers and others affected by the proposed changes will be fully informed. The
Company's plan includes the use of various owned media (e.g., bill inserts, newsletters,
websites, etc.) and external media (e.g., newspaper/online advertisements, social media, press
releases, etc.) to communicate the CRM project changes and benefits to its customers. The
communications will be tailored to each customer segment.
Proposed Effective Date
Tampa Electric expects the transition date of the CRM system to occur on or about July 5, 2016.
The Company requests that, if approved, the proposed tariff revisions be made effective as of the
transition date.
Summary
Staff believes Tampa Electric's proposed tariff revisions are reasonable and should be approved.
No later than 30 days prior to the transition date the Company should notify the Commission in
writing of the actual transition date.
-4-
Issue 2
Docket No. 150159-EI
Date: September 3, 2015
Issue 2: Should this docket be closed?
Recommendation: No. If a protest is filed within 21 days of the issuance of the order, any
revenues collected once the tariff becomes effective should be held subject to refund, pending
resolution of the protest. If no timely protest is filed, this docket should be closed upon the
issuance of a consummating order. (Mapp)
Staff Analysis: If a protest is filed within 21 days of the issuance of the order, any revenues
collected once the tariff becomes effective should be held subject to refund, pending resolution
of the protest. If no timely protest is filed, this docket should be closed upon the issuance of a
consummating order.
- 5-
Attachment 1
Page 1 of6
Docket No. 150159-EI
Date: September 3, 20 15
l-ffiR.{)....FOURTH REVIS:EO SHEET NO. 3.02.0
CANCELS ~0 THIRD REVISED SHEET NO. 3.020
b€¥EUZEG-I-I-A¥MENl Pl ANBUOGET BILLING P AN
(OPTIONAL)
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tJCg1r 11ir>q the pla n. The Ccmp.=:QY. r. h:J'I ha ~'C JIJ days follc,..,·ing a CuS!Om~Jr :;, ·t;q .. t::st l<1 pc.,f\t Ct~mr.e- n the B .Jdc;cl
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o l tt'lc Plt'~\OJs twei\'E ! 12 1 mor .lh f. b1 If> due ·ttr- CC''"'PdO\', 1r r.: .JC tn q nl ap :11tc.r. ble r~:;r:~• a r •~ t" JC~s . If the
Cu~ tc mer ha s r~ t r ecewec! e _~c s cl'\!·icc from jh:: C om:Jr.•w 1 0' It!¢ ore c.edtn•. :w... ~~m'• Plh :.. , the Cvm c·an\
wor <t.f.£- !1'\e best .nf!)rna:ic-'1 <)llallab:t: 1o c a : ulate the nttl.::l mo n t h ·~ PiJy m epl amour I Afi~r the Cus tomer' '!.
bv!:lr:oeted mo nthl•t r ~ ·;f' ef"t am:;~un t has t:-een t" !lisl ·,· ~l:'!tJ it :O •'!~~ tr·e ComP~n 'To a ... f eC.1!CI.. A1e l'le o.,,...., en '
from ltrne ·o Li; c I the re c3lcu;.steo t;u<;:gc1ed Pu'vrnenl a m :~ur l 1/.Srtc :; by t.ft~ '(1 51 CE t ·:~ nl 0 1 rrc :e from lt•f'
ISSUED BY: J 8 . ~ G L Gillettt".
DATE EFFECTfVE:
President
-6-
~+
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·
Attachment I
Page 2 of 6
Docket No. 150159-EI
Date: September 3, 2015
-
.Eca
-
THI~F O URTH REVISED SHEET NO. 3.020
CANCELS SE-GONG-THIRD REVISED SHSET NO . 3.020
bud~ ted o~vment ;!m•~Lml ~.!l.. r·· •:ff~ct,
Customer -s f'!i,l~ ;:,Jcr.ef.~w· t; II
the r. cm p."lrh' rrr :w b er;_in r .:,arl~ I WJ the
ec:1tcul;,•rec vmv~"
~~~\ currcn~ ,, nc \otil cefer·ed 1.!<~ ar'' C-'"''1 l•t" ~.-c.-.1.'1 ?n l"'lt' ~: us1::~rrrer ' s t I 'I n e C1..s1om""r's b...Jdc:e:ed 1 a.•me'1~
amour: wlf be reca lc;u :;~tee: Of HsJ• .:1 ;~m: rv~rscn·,· of trc C:u -.•c.· ~ er s rrUr;,rl :> .. rttr. rn~ l ouq · 1.- ~ nlan 0 n st..cl t
recatculal!on :'! nv cr F-~ r ; r1ftfrrf0 b alance . .., be ·efL ndP.d lo trtP. Cu$lomer and o--:-I'J•e lftrt jl/: 2) o l 3ny del:; l
'o (t; c follc-,~oi nc; veer s rt'O..•Ir.u ;,.rtt'!r: t:tu.!Qt:tr>r: m cnlhl , oa •n 1c11 a·1'IO!.ID:.
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1\n cl-:-clfll~ ~1.1~t omer"s Oi:ui •C QP.II o n
!t:e (3u!.lq~· Bri ir·r Fl an •t .i.l De r.<r n1 m r...otr~. v nlr•:;;; the ~slomer requests
toat ~;;ai.iC i ~at i o n in Ire [;IAn ll~ 1P.·mm:.Jier1, c cclric s.en, c.P. s term in:; led. nr ht • Cus1or<"•er has ,"J;;Jd 'Tiore lt1:1n one
errea 'S ~;;er \'Ear IMIA l ng f f!lrJ !<Dif¢cb:>n ;?r?::.ccur~ At !h1t t w~;: ll1f' C J>1!omcr s :>ar'..icioation i n lhe plan w ill ht
IEH!nrnwt~d ano tt:e Cu:il·: .mc r :;ha I sert e h s m;r.n .• nt •;.~_ih 11-c Comp;1n•1• in ' 1.. I
I' a C.Jstomer wQ•.•n.;1;,..J!::
~1c p i.rr:r<;tp ;;tr·Ofl rn :he :>la'1 1• •1l rtrnarns a CJstorr'Jr of fl·c Com;:~ary, tre er,,·.wmnr ~;·, <'r:.;..a x· ~ny ceter ·ed
debit bat a .. cc ....i~ the nekl reoul:!.r mon]t:y t;rll, a'ld a rw ceferrec r.rr;rlrl bale:mr.r• ...
be used 10 •educe the
.i!mOJnt due fo ~ tr e nell! regu lar m2 ntt:ly b.ll .A.n c cclm::J customer rrl.;;a,· n""n•J~' l'1a1 Oarti ci ~;a t•:~ n be 1ermtnatec ;tl
TY t rme A nv ~!.: f·f ~,f!r who r5 dl5 ~ual t ficd b ec.~L!\.e of •<•>tl~.;! inn action rn..rv n·? t r.r: jo tn lor at 1e.1s1 t-our' If(! L1:;;j
mojlhs
,.,n
!
ISSUED BY: J . 8 Ram•IG L G• llette,
Pre sJdant
-7-
DocketNo. 150 159-EI
Date: September 3, 2015
Attachment I
Page 3 of 6
FIFTH SIXTH REVISE D SHEET NO. 5 .130
CANC El S FOURTH FIFTH REVISED SHEET NO. 5.130
Continued from Sheet No. 5.120
2.1.2
DEPOSITS
At the compa ny's option, a deposit amou nt of up to two (2) month's average billing, or a
suitable guarantee as security for payment for el'ectric sef'I/Rce, may be requ ired at any time.
Initial deposits fo r new prem ises are calculated based on the customer's submission of
electrical load infom1ation. This information is then utilized to estimate average monthly usage.
Initial deposits for existing prem ises, where typical usage has reg istered in the past 6 months,
is calculated by accessing historical usage_ If such historical usage is not available, a load
calcuJating tool is used to estal)lish average usage based on square footage of dwelling . As a
suitable guarantee the applicant for service may furn ish either (1 ) a satisfactory guarantor to
secu re payment of bills for the service requested', (2) an irrevocable retter of credit from a
bank , or {3) a surety bond. For residential customers, a satisfactory guarantor shall, at the
minimum , be a customer with a satisfactory payment record . For non-res idenUal customers, a
satisfactory guarantor need not be a customer of the utility_ Each utility shall deveJop minimum
financial criteria that a proposed guarantor m ust meet to qualify as a satisfactory guarantor. A
copy of the criteria shall be made ava ilable to each new non-residential customer upon request
tJ~y lhe customer.
Afte r a residential customer has estabUshed a satisfactory payment record and has had!
continuous service for a pe riod of twe nty-three (23) months , the customer's deposit shaJ~ l)e
refunded provided th e clllstomer has not in the preceding twelve (12) mo nths, (a) made more
than one late payment of a bill (after the ~e xpiration of twenty (20) day s fro m the date of mailing
or delivery by the company), {})) paid with a check refused ~)y a bank, (c) been dlisconnected
for non payment, or at any time, (d ) tampered w ith the electric meter, or {e ) used service in a
fraudulent or unauthorized! manner.
A m inimum of two pement (2%) interest per annum on deposits shal l be credited to th e current
bill annually and when deposns are refunded. Interest of three percent (3 % ) sha ll be paid on
deposits of non-residential customers afier the deposits h·ave been held for twen ty-th ree (23)
months and the company elects not to refund the deposits. The deposit interest shall be
simp le interest in all cases. No customer depositor shall be entitled to rece ive interest on his
deposit until and un less the customer relationship and the deposit have been in existence for a
continuous period of six (6) months , then he stlall be entitled to receive interest from the day of
the commencement of the customer re3at1onship and the placem ent of deposit
Upon termination of seiVice, and provide d aim bllls have been pa id in full, ttile deposirt andl
accrued interest may be credited aga1nst the firna l account and the baJan.ce if any, shaJDlbe
returned promptly to the custome r w ithin fifteen ( 115) days after service is discontinued.
Continued to Sheet No. ~5 . 1 35
DATE EFFECTIVE: JyJy 26, 2012
ISSUED BY: G . L. Gillette, Presiden t
-8-
Attachment 1
Page 4 of6
Docket No. 150159-EI
Date: September 3, 2015
ORIGIN AL SHEET NO. 5.135
T AMPA
I
I
ll"nT ~I n
Continued f rom Sheet No . 5 .130
At the Residential Customer's option. the Com pany will verify the Customer's credit through an
external credit monitoring service to detem1ine if the customer meets the company's creditworthiness criteria a llowing the security deposit to l)e waived. This type of credit verification
will have no impact on the Customer's credit score .
Continued to Sheet No. 5.140
I ISSUED BY:
G. L. Gillette_ President
DATE EFFECTIVE:
- 9-
Attachment 1
Page 5 of6
Docket No. 150159-EI
Date: September 3, 201 5
FIRST SECOND REVISE D SHEET NO. 3.025
CANCEL S ORIGINAL FIRST REVISE D SHEET NO. 3.025
SUMMAR Y BILLING PLAN
(O PTION A L)
A Cu stomer with ten (10 ) o r m o re Tamp a E lectric accoun ts a nd n o b ill in arrear s ma y request a sing!e state me nt
fo r t he billing a nd paym en t of tllose· accounts und er thi s Summary Billin g Pl a n. 'N ith S umm ary B illing, the
C ustomer designates 'l.t.ic h accclJnts are to be in cluded in the pla n. T hose accoun ts .wi.ll-may ~ e separate<l
into g roup s each of whic h w ill b e bille d o nce a month on cycle b[ lin g d a ys a s eesi!JAea designated by 1he
C ompany.
T a mpa E lectric wil l read each m eter and cal'cu!ate a billin g a m ou nt for e ach aocounrt s eparately. The b illing
a m o unt for eacn o f th.e desig nat ed account s will be totafe d o n a S um mary SWin g stateme nt, w ith ea cn of llhe
in<lividua l aocount bills at1ac hedl as bac kup. and a si ng le totaled b ill w ill be included fur remittance. Summary bi"lls
are due w hen ren"de red . If the s um m ary bill is nc~ aqa FP~otst ~e pa id in ful l within ten ( 10 ) d'a ys from the mafling
date. the customer may be rem oved from iA oR:Ier ~e FeA'Iair er tile Sum ma ry B illi ng P lan .
ISSUED BY: C. R BlackG. l. Gillette.
President
DAT E EFFECT IVE : May 7, 2009
- 10-
Attachment 1
Page 6 of6
Docket No. 150159-EI
Date: September 3, 2015
THIRTEENTHfOU RTEENTH-_REVISED SHEET NO. 3.(110
CANCEL S TWELFTH THIRTEENTH REVI SED SHEET NO.
3.010
T .6 MP.6
IT I
MT ~I I"'!
MISCELLAN EOUS
TITL E
SC HEDULE
SHEET NO.
Le't'eli::ed Payment Plan Budget Billing Plan {OpUonal)
3.020
Summary Billing Pla n (Optiona l)
3.025
Servire Charges
3.030
Home Energy Analysis
3.040
Cornmeroial and Industrial Energy A nalysis
3.050
RSL-3
Load Management (Optional)
3.1 10
GSLM-1
Gene ra1 Service Load Management Rider
3.150
GSSG-1
Standby Gene rator Rider
3.200
GSLM-2
GeneraJ Service In dustrial Load Management Rider
3.210
GSLM-3
General Service Industrial Standby and
Supplemental Load· Management Rider
3.230
BERS
Building Energy-Efficient Rating System
3.250
NM- 1
Net Metering Service
3.255
RE
Renewabre Energy Program (Optiona~)
3.270
ISSUED BY: G. R. B lackG . L. Gillette,
President
DATE EFFECTIVE: May 12, 2009
- 11 -
Item 9
FILED SEP 03, 2015
DOCUMENT NO. 05513-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
CAPITAL CIRCLE OFFICE CENTER • 2540 SHUMARD OAK BOULEVARD
TALLAHASSEE, FLORIDA 32399-0850
-
-M-E-M -0-R-A-N-D-U-M-
<n
DATE:
September 3, 2015
w
-
TO:
4. .
-· '--:'?
)
-
Office of Commission Clerk (Stauffer)
,P
,.,
'
I
I
p
'
J::>o
..,
,
FROM:
Division of Economics (Ollila)
0 : 6}'0 &) ,.0/
Office of the General Counsel (Mapp) t'J..1l, ~0'1>
RE:
Docket No. 150 160-GU - Petition for approval of tariff revisions to implement
customer relationship management (CRM) project, by Peoples Gas System.
.;:U1
•
AGENDA: 09/15115 - Regular Agenda - Tariff Filing- Interested Persons May Participate
COMMISSIONERS ASSIGNED: All Commissioners
PREHEARING OFFICER:
Administrative
CRITICAL DATES:
60-Day Suspension Date Waived by the Company Until
the 9/15/15 Agenda Conference
SPECIAL INSTRUCTIONS:
Place Docket No. 1501 59-EI adjacent to this docket
Case Background
On June 25, 2015, Peoples Gas System (Peoples or the Company) filed a petition for approval of
tariff revisions related to the implementation of Peoples' and Tampa Electric Company's (Tampa
Electric) Customer Relationship Management (CRM) project. Peoples and Tampa Electric are
both owned by TECO Energy. Peoples seeks approval of modifications to its budget pay plan
and deposit tariff provisions as well as the addition of summary billing so as to align these
provisions with those proposed by Tampa Electric in Docket No. 150 159-EI. In addition, Peoples
proposes a modification to its Rider Natural Choice Transportation Service (Rider NCTS).
Currently, Peoples and Tampa Electric are served by legacy mainframe customer billing and
meter information systems. The CRM project will update and modernize these systems with new
hardware and software. Peoples requests approval of its proposed tariff revisions to be effective
on the transition date to the CRM system, expected to occur on or about July 5, 2016.
Docket No. 150160-GU
Date: September 3, 2015
Peoples and Tampa Electric met with staff and the Office of Public Counsel in noticed meetings
on March 31 and June 1, 2015, to provide an overview of the CRM project. Staff issued one data
request. The proposed tariff pages are contained in Attachment 1. The tariff pages are in
legislative format in order to display the proposed changes in type-and-strike. The Commission
has jurisdiction over this matter pursuant to Sections 366.03, 366.05, and 366.06, Florida
Statutes.
-2-
Issue 1
Docket No. 150160-GU
Date: September 3, 2015
Discussion of Issues
Issue 1: Should the Commission approve Peoples' proposed tariff revisions?
Recommendation: Yes. The Commission should approve Peoples' proposed tariff revisions
effective on the transition date of the CRM system, expected to occur on or about July 5, 2016.
No later than 30 days prior to the transition date the Company should notify the Commission in
writing of the actual transition date. (Ollila)
Staff Analysis: Peoples proposes changes to its budget pay plan, deposits, and Rider NCTS.
In addition, Peoples proposes to add a summary billing option. Each of the proposed changes is
discussed below.
Proposed Tariff Changes
Budget Pay Plan
Peoples' Budget Pay Plan is an option for residential customers designed to help customers
stabilize their monthly payments. Currently, the budgeted payment is recalculated on each
anniversary of the customer's participation in the plan. At that time, any credit deferred balances
are refunded and 1/12 of any debit deferred balances are added to the monthly recalculated
balance. From time to time during the year, Peoples reviews the monthly budgeted amount and
compares it to a recalculated amount. If the recalculated amount varies by 25 percent or more
from the budgeted amount, the Company may begin to charge the recalculated amount.
Peoples proposes to change the name of its Budget Pay Plan to Budget Billing Plan. The
proposed Budget Billing Plan modifies the current plan by extending its availability to small
commercial customers, changing the qualifying criteria, and changing the 25 percent variance
allowance to 15 percent. Currently, in order to qualify, a customer must have no owed balance,
allowing only a short window of opportunity between the payment of the current bill and receipt
of a new bill. Under the proposed plan the customer must have no overdue amount and no
pending disconnection for non-payment to qualify. The 25 percent variance amount is being
reduced to 15 percent primarily because 25 percent, while not significant for residential gas bills,
according to Peoples, can be significant for residential electric bills. Peoples and Tampa Electric
agree that a 15 percent threshold would have little impact on Peoples' customers and at the same
time, it would mitigate potential volatility for Tampa Electric's customers and allow both
companies to have the same budget billing process.
Deposits
Currently, residential customers may provide a recent credit reference from another gas or
electric utility reflecting a good credit rating for the prior 12 months in order to establish credit,
allowing the deposit to be waived. According to Peoples, this method is an outdated and time
consuming process that is losing favor with utilities. Peoples proposes to replace it with an
optional credit verification through an extemaVindependent credit monitoring service to
determine if the security deposit may be waived. As with Tampa Electric, Peoples states that the
proposed verification will not have an impact on a customer's credit score.
-3-
Issue 1
Docket No. 150160-GU
Date: September 3, 2015
RiderNCTS
Peoples' current Rider NCTS allows fmn service customers who use more than 2,000 therms per
year to purchase natural gas through a third-party supplier or pool manager. Rider NCTS
customers who would like to change to a different pool manager must make the request prior to
the 21 51 day of the current month in order for service to commence on the flrst day of the
following month. Consequently, customers often received pro-rated bills from two pool
managers because the billing cycle may not always begin on the flrst of the month. Peoples'
proposal in this proceeding changes the effective start date of a pool manager change to the
customer's next billing period; thus, the customer would receive only one pool manager's bill in
a billing cycle.
Summary Billing Plan
Peoples requests approval of a new Summary Billing Plan similar to Tampa Electric's plan and
proposed changes in Docket No. 150159-EI. The plan would offer summary billing to customers
who have ten or more accounts. Peoples would read each meter and calculate a bill for each
account separately, with the amount totaled on a summary billing statement (with the individual
bills attached as back-up). Customers would have the option to separate accounts into groups. If
a customer fails to pay within ten days of mailing, the customer may be removed from the
program; however, no delinquency actions will be taken unless the summary bill remains unpaid
for more than 20 days.
Communications Plan
Peoples plans to carry out what it describes as a comprehensive communications plan so that
customers and others affected by the proposed changes will be fully informed. The Company's
plan includes the use of various owned media (e.g., bill inserts, newsletters, websites, etc.) and
external media (e.g., newspaper/online advertisements, social media, press releases, etc.) to
communicate the CRM project changes and benefits to its customers. The communications will
be tailored to each customer segment.
Proposed Effective Date
Peoples expects the transition date of the CRM system to occur on or about July 5, 2016. The
Company requests that, if approved, the proposed tariff revisions be made effective as of the
transition date.
Summary
Staff believes that Peoples' proposed tariff revisions are reasonable and should be approved. No
later than 30 days prior to the transition date the Company should notify the Commission in
writing of the actual transition date.
-4-
Issue 2
Docket No. 150160-GU
Date: September 3, 2015
Issue 2: Should this docket be closed?
Recommendation: No. If a protest is filed within 21 days of the issuance of the order, any
revenues collected once the tariff becomes effective should be held subject to refund, pending
resolution of the protest. If no timely protest is filed, this docket should be closed upon the
issuance of a consummating order. (Mapp)
Staff Analysis: If a protest is filed within 21 days of the issuance of the order, any revenues
collected once the tariff becomes effective should be held subject to refund, pending resolution
of the protest. If no timely protest is filed, this docket should be closed upon the issuance of a
consummating order.
- 5-
Attachment 1
Page 1 of 6
Docket No. 150 160-GU
Date : September 3, 20 15
~econd Revi sed S heet No. 5 .401-3
Cancel s OrigiRal F i rst S heet No. 5.401-3
Peopfes Gas S yst em
a D mv is i on of T a m pa E lectric Com pany
Ori gina l Volume No.3
BILLING (Continued)
I.
B UDG ET ~ILLING
P LAN Coptio nal»
R~ i d.enti aJ C ustomers IRS) a n d Small Com merc ia C ust omers (SGS \ - may e le Cii. to m a.k e
budgeted mon tnly paynle n ts of amounts due the Company 10 help stabilizte 1tle ir monthly
payments.
T o qu.afify for 1he B udge t ~il ·ng .EP~ a.n. a c u stomer must ee a )"ear FB~IRB
c:u=&tonHir and have no overd u e balance or p ending service discon n e-ctic n f o r n on- pavm<>nt ~
when begin n i:n g the p la n . T he Com pany s h a ll h ave 30 days fo[lowing a Cusbomer's request to
participate i n the .§_-&udgete4 JJa)"'ffeAt B i lling P:t"!an to im ptement such par1ic ipatio n .
mt a Customer requests to m ake b u dgeted paymen ts. t h e initial' budgeted payment amou n t is
based on an a vera ge of t he previous cv.-elve ,• 121 mon"ttls b ills due the Company. in cludfn g a ll
applicable fees and tax es. [f the C u stomer has n ot received Gas Service trom the Company tor
the p receding :welve f 121 months . the Company w ill u se 1he best informa1ion a v a ilab le to
calculate 1tle in itia l m onthly paynlent amou nt. After t he Customer"s b u dgeted monthly pa.ymem
amount has been in itially e stablis hed . the Company m.ay recalculate the payment from tim e bo
time. It the recalcula t ed budgeted payment amou nt v.ari:es by ~rfteen ( 15) percent or more from
the budgeted payment amoum 1tlen in e ffe ct. the Compan y m ay b egfn c h arging the r ecarcullated
amount on Customer "s n e x t successive b ilt.
A n y c u rren t a n.d total deferred b a lance will be shown on 'lh~ Customes-"s b ill . T he Custocner's
budgeted payme n t a moun t will be recar.c u rated on each ann ivasary of "the Cu s tom e r's ini~a l
participatio n in the p fan. On s u ch reca.lcu~U.On. any c redit d'e1erred bala n ce will be refunde d 1o
the Custom e r . and one-twelfth ( 1/12 } of a n y d e bit def-es-red balance will be added liD ttoe f o [ lo•uin:a
year "s reca fc u fated budgeted mon11hJy pa~m;:nt amount.
A n e lectin g C u stom e r's p a nicipatio n in the .§_-Budget-e-D JJa')'We"t: B iiJjng P~lan will be cont inuou s
unless m e customeS" req u ests 1hat particip a tion i n "the p la n be term in ated_ or 1h011 G a.s Serv ice ~
is terminated. o r the Customer h as nad more than one arrears per year m iba ting field ccl lectic .,
procecures .is aeli"t~loleAI iA JJa)'iRO t'kte BOieioe:ea JJa)'R'IeAt aff!BI2At fer t'w-.e StleeessiYe ff'!BAtRs. At
that time. the Cust omer's panicipallion in "the plan will be t erm inated a n d t h e Custo mer shall sertfe
hi<s account with the Com pany in f u ll. tf a. C u stocne r reques"ls to t e rminate participation in '!he
plan . but remains a C u stomer- of the Oompan~. t h e Customer- shall pay any deterred debit
balance with nis nex t reg ula r monthty b W . .and any deferred c redit balance shall be u-sed liD redu ce
the a mou nt due f or t h e n ext regt.~ l ar monthly bill .
An e le cting customer rn a~ request that
participatio n be ter m rn ated at any tim e. Any C ustomer ....-no ts d isgualffied b ec.au se cf collectic.,
action m ay not re" c in for at least :welve i 1 2 \ months .
~ ssued
~ s s ue d
By: G . L . G illette, P resident
On: Octobsr 1 Q, 2011
Effe<:_tive: Man;h
-6-
1a. 2012
Attaclunent 1
Page 2 of6
Docket No. 150160-GU
Date: September 3, 201 5
Peoples Gas S ystem
a Divis ion of T ampa E lectric Company
Ori g i nal Volume No. 3
~ F o u rt h Revi s-ed Sh e e t No. 7.30 1 -1
Cancels SeGeRd T h i rd Revised S h eet N o . 7 .301-1
S MAL L G ENERAL SERVIC E (Continu ed)
5.
Servi ce under this sch edu le shall be s ubj ect to t he R u les a n d R egu latio ns set forth
in th is tariff_
6.
Servi ce under this s c hedu le is s ubj e ct to an nua l volu m e review by the Co m p a ny or
any t ime a t the C u stomer's request.
If re cl a ssific ation to a noth er sch edlllle is
appropriate such classificatio n w ill b e p rospec tive .
7.
T h e rates set f o rth under this sched u le s h a ll be s u bject to the o pera tion o f the
Com pany's Tax an d Fee Ad justment C lause set fo rth on S heet N o . 7.1 0 1-5.
8.
The rates set fo rth u nder this sch edu le s h all be s ubj ect to the opera tio n of the Cast
Iron Bare Steel Replac e m ent R ider S u r c harg e set forth on S h eet N os. 7 .806
t h ro u gh 7.606- 3.
N o te : Comp any's Budget Bil li n g P lan is available to e ligible C ustomers rece iving Gas Se rv ic e
pursuant to th is ra t e schedule (See S h eet No . 5 .4 0 1 -3)
Issued By: G . L. G i llette, P r esident
Issued O n : D ecember 1 ~ . 20 1 1
Effecti v e : J aAuapY 1 . 201 3
-7-
Docket No. 150 160-GU
Date: September 3, 201 5
Attachment 1
Page 3 of 6
Peoples Gas S ystem
a Divis i on of Ta m pa E lectric Com p any
Ori g i na l Vol ume No. 3
Fif.s+-Second Rev ised S h eet No. 5.30 1
Cancel s OrigiRa l Fi r st S heet No. 5.30 1
Il l
D E POS ITS
A.
E S T ABU S HME PIJT O F CREDIT
E ach prospectiv e Custome r shall establish credit p rior to 1he com m e n c e m ent of G-as Service by
Com pan y b y o n e o f the folrowin g m eth ods:
L
t.tak in g a cash d eposh w ith Com pany equa l 10 tvo.ro ( 2 } t im es the estimated .av e rag-e
m o n lhly b i ll to be nmd'ered by Com pany .
2.
In t h e case of a resicfen1ial Cu-st omer• .a; t h<> c ystom P-r' s 0 p1ion t b P C ompa ny will pP-rfc'TTl
a credi: ver::fio.ation through a n e x:emal credit monitoring seJVice co determ ir-e if the
C u s t o m e r m eets the Company's cred!twcrthiness crit e-ria allowin g tre- secu ri w deposit to
be- waived. T h is type of credit verificat ion wi have n o impact on the custome-r's c r edit
score . fuFAisAiA§ a ceeem e · eei-: cefnreAee 'A'e'fl aFelt-e · Gas er e ' eetre llliility raleetiA!J a
gees eree!it ratiA!l fer ~e J:Vier ?.Vel'<e (1 :a) eeRsee~1i¥e FAePths .
A former residentia l C u stom e r of the C ocnpan y w ho (with i n s ix m onths o f 1he t ime of
d iscont inu ing service. and w h o h as. for t h e twellJe ( 12 } m o n ths im m edtate-ly p receding h is
termination. estab l ished a sat isfactory payment record as set furth in Secaion F below)
re q uests ser 1iee u-n der t h e sam e rate sch edu le shall b e deemed to h a v e estab lished
credit.
3.
In t he ca-se o f a resid e n ti a l Cuswm er. iumish.in9 a g ua rantor. sat isfactory to Com pany , t o
secure payment of b ilrs fo r the Gas Service c-equ estedl. A satisfactory 9 u a ran10r s h a ll , a t
m e m in im u m . be a C u stomer of Company wittl a sat isfactory payment r€cord.
4.
!Furnishing an irTevocable letter o f credit from a b ank. o r a surety b o n d . issued by .a
Company with an A _M _ Best Raiing Service ratin g of B lVI or h [.gher for b onds up to
$50.000 in amount a nd a r-aling o f A -/ V I I or h.ig h e r for bonds OlJer S50, 00<0 in amount.
T h e a m o u n t of s u ch deposit. retter of credO. or s urety bondl sh a ll be equ a l to tvo"O (2 } times
1he estimated av·erage mon tt.ly b ill f o r service h ereu -nder.
5.
a.
By possessi ng a nd m a intain in g a Standard & Poor's (S & P} Long T erm Debt
R.:rtin.g o f A- o r b e-tier. o r b y p ossessinQI a n d maintainin g a Moody' s ra tin g o f A3
or better. C<1m parable ratin9s m ay b e con s idered' from o1f'le r n a1ion a lly
recognized raiin QI organfz.aiions .acceptable to t h e Com pMly.
b.
(I)
[f 1he Custom e r's d e bt is not ratedl and th e Cu stomec-'s ag-gc-ega.te a n nual
u sage is 500,000 Therms o r m ore, credit may be estab lish.ed by
cf€monst ratin g .adequ at e · financia l s:tJremg t h and stability. U p on n=qu€st o ~
a C u s tomer w h ose ann ual us.age is 500 ,000 Th e rm s o r m o re. llhe
Compa n y w iU e~•al uate ;the· Custom e r's c redh-worthf.n ess by re•.•ieo.win g the
Custom e r's audited financia l s u t e m emts fur at !.east the 1WO m ost recen tly
com p leted' fiscal years. T h.ese a udited financia l statem ents m us t be
f ur ni:s h ecf by 1he Custom e r a nd m ust b e a c companie d by ttle opirlion of
independen t cerilii'ed pub[ ic a ccountants o c- c h art-er ed accounun ts of
recognized n ationa l o r r egfon.al standirlg.
Effect ive: MarG h 1 ~ . 201 2
Issued By: G . L G i llette, P residen t
Is sued On: 0Gtoesr 1 Q, 2011
-8-
Docket No. 150160-GU
Date: September 3, 2015
Peo p res Gas S ystem
a Divis ion o f Tam p a E lectric Company
O ri g i nal Vol ume No.3
Attachment 1
Page 4 of6
-F+ftft-Si xth Rev i sed Sheet No. 7.80 3 -2
Cancel s fe.,rtf:l Fifth Rev i sed S heet No. 7.80 3 -2
NATU RAL CHOICE T R A N S POR T A T IO N SERVIC E (Continued )
3.
To in itiate service pursu a n t to this R id,e r , a Customer s h al l select a P ool Man ager from
C ompany' s appro ved P o o l Manager list a n d P ool Manager s h al l e n.-oll c us tomer
ele ctron ically via company's website f or servi ce u nder this R ider. T he Pool Manager s h al l
ob tain a lette r of au thor ization in the form s e t f orth o n Shee t 8 .1 18 o f th is tariff and h ave
signed b y the C u sto m er prior to such e le ctroni c e nro ll m en t. Pool Manager shall also pay to
Compan y a registration fee of $ 10.00 for e ach Customer accou n t to wh ic h service is
in i tiated h e reunde r.
Service by Company to a Custo mer acc o un t fo r wh ic h servic e
hereunder has b een p .-operly r e queste d by e le ct ronic enrollm e nt p rior to t he twenty- fir& day
of t h e mont h pursuant to thi s R ider wi ll comm ence o n the first d a y of ~h e Customer's bi lling
period of the next calendar month following recei p t by the Company of t h e afo resaid
Service und e r R ider will be delayed until t he first day o f the
ele ctron ic e nroll m ent.
Customer's secene billing period in the second calendar month following e n ro llment by t h e
Pool Manage r fo r any C u stomer e nro lled after the twentieth day of t h e month.
4.
A Customer account re c eivin g service under this R ider may termi n a te service here under b y
its then s e rving Pool Man ager an d comme nce servi ce h e reunder (w ith in the t ime and in t h e
m anner provided in Special Condition 3 ) by a d ifferent Pool /Ma nager. T h e n ew P ool
Manage r shall pay to Company a registration fee of $ 10.0 0 fo r each accounl
5.
If a P ool Man ager requests the Compan y provid e t h e twelve-month consumptio n h istory fo r
a Custome.- accou n t , the Company shall provid e to the P ool M an ager the h istory and apply
an admin istrative fee ch arge e q ual to $20 per c u sto mer account t o Pool Ma n ager's month ly
invoice .
6.
A Custom er receiving s ervi ce u n der this !Rider may d iscon t inue service h e r e under b y giv i llgl
Company 30 days written notice. A Customer w h o e lects to termin ate tran sportation
service u n der th is Rider in orde r to return fo s ales servic e will be req u ired to remain on
sa le s s e rvice fo r a p eriod not less than twel ve monthss.uccessive billing periods.
A
Custome r who retums to sales service due to abandonment by its Pool Man ager wi ll n o t b e
requi red to remain on sales service but cannot retum tio the sam e Pool Man ager, or any
affili a ted con1p a n y, for a t least twelve menthssuc ce~ive billing periods.
7.
For p urposes o f curtailment or interrup t ion by Compan y , each ind ividu a lly b i lled account
receiv in g service h e reunde r shall be treated by the Compan y in accordance w iUl the
cu rta il m ent p rovisions found in the applic abl e rate s chedule or Curtailment P lan as filed
w ith the Florida P ubli c Service Com missio n .
8.
Accounts rece iving servic e p ursuant t.o this R ide r will b e s u b jed to the Swing S e rvice
C h arge (set forth on Sheet No. 7.101 - 3 ).
Issued By: 'A'illi&ffl ~~ . GeA ~reiiG . L . G illette. President
Issued On: F s9ruary 13 . 200§
-9-
E ffective: Feerue Pf 13 . 2:0 06
Docket No . 150 160-GU
Date: September 3, 201 5
Attachment 1
Page 5 of6
Peoptes G a s System
O r rgin a• S h eet No. 5.4 0 1 -4
a Di,v i s i on of Tampa E le ctr i c C ompany
O r i g i na l V o l ume No. 3·
B ILLING (Continued)
::!-
SUMMARY BILLING PLAN ( o p tional)
A C ustomer with t en ( 10 ) o r m ore Company accou nts a n d no b ill i n a r rears may r equest a s.ingl~
stat ement for t he billing a nd p ay m e n t of those a ccou nts u nde r th i s S umma ry B illing Plan. With
S u m mary B il ling . the Cus tC>m e r d e s ignat es w h ich accou n ts are to be inc lud e d in th~ olan. T h~
aooouncs m a y be separated int o g roups each of w hich wi ll be billed once a m o nth en cycl~ bil1in g
days a s d esigna t ed b y the C o m pany.
Tr..e Comoa ny w ill read each m eter and ca lculat e- a billng a m oun t for each accoun t separately.
T he b illin g am o u nt for e-ach o f the designa ted accounts w ill be- t otaled o n a S u m mary Billi ng
stat emen t. w i':h each of the- individual account b i:Js a ttached as backup. a n d a s in gle- t o taled bi
will be- included for remittance-. Summary b ills are d ue w hen rend e-red. If th., s u mmary b i ll is not
paid in full withi n ten ( 10 ) dav s from th e- m a.Jing date, t h e Customer may be removed f rom t h e
SlJm mary B i llin g P l a n
Issued By: G. L . G i llette, Presiden t
Is s u ed O n :
Effective:
- 10 -
Attachment 1
Page 6 of 6
Docket No . 150160-GU
Date: September 3, 2015
P·e o p les Gas S yst em
a D i vision of T ampa E lectric Company
Orig i n a l Volume No.3·
Tl'liFd Fourth Rev ised S heet No. 5.000
Cancels SeseAEI Thi r d R e v ised S heet No. 5 .000
INDEX O F R U LE S AND REG U LATION S
ARTIC LE
I.
II.
INITIATI ON OF S E RVI C E
A .
Request foe Gas Service
8.
Acceptance of IR.equ:es'! for Gas Setn.~i ce
C.
Obligation of Cus tom e r a nd Com pany
D.
,.<iscellaneo u s Service Charges
E.
IJI/i1hh o lcfing of Gas Servic e
F.
Lim itation of Use
G.
Pres sure
E.
F.
G.
IV.
V.
5 . 101
5 . 101
5 . 101
5 . 101
5 . 101 - 2
5 . 101-3
5 . 10 1- 3
C U STO MER' S IN S T A LJLAT ION
A.
General
8.
C.
D.
10.
S H EET NO.
5 .20 1
5 .20 1
5.20 1
5 .20 1
5.201- 1
5. 20 1- 1
5. 20 1- 1
Inspection of Custom er's Installation
Changes i n Customer's I nstallat ion
R ight of Way
Prot ection of Com pan y's Propeny
Aocess to P r emis e s
Operatio n of Company' s F acili'lies
D E POS ITS
A.
E stablis h ment of Cred it
Receipt for Cash Depos it
B.
C.
New oc Addi t io n a l Depos its
0.
Recocd of Deposit
E.
In terest on Cash Deposits
F.
Refund of Residentia l Deposit
G.
R e f u nd of Deposit W h en Gas Service iS D isconnected
H.
Returned C h ecks
5 .30 1
5 .310 1- 1
5 .310 1- 1
5 .301 -2
5 .310 1- 2
5 .30 1-2
5.310 1- 3
5 .30 1- 3
B ILLI N G
A.
B iUing Periods
8.
In i tia l o r F in.al B ills
C.
Non-Receipt of B ills
D.
Meier Readings M ot Comi::X:n edl
E.
Deli nquent 8 i'l ls
F.
D iscontin uance of Service andl o r C h a nge of Occu pan cy
G.
D iscontinuance of Service for Non-Payment of B ins
H.
Adj ustmen t of B il~ tor Mete r E rror
I.
Budget ~ i lli ng P tan (Opttonal}
J.
Summary Bi lling Plan ( Op~ iona l)
5.40 1
5.401
5.401
5.40 1
5 .40 1
5.401-1
5.40 1- 1
5 .401-2
5.40 1- 3
5.401 -4
MEASURE M E NT
M leters
8.
Type ot Metering Pro•Jided
C.
Meter Accuraq a t In stallation
D.
Meter T ests
E.
M!e:er T ests b y Req u est
F.
Meter T ests-Refe.re-e
G.
M-easuremen t Condi1ion s
A.
5.50 1
5 . 50 1
5 . 50 1
5 . 50 1- 1
5.5~ 1 -1
5 .50 1- 1
5.50 1- 2
Effe~ti ve:
Issued By: G . L. Gillette, Preside nt
Is s ued On: October 1 9 , 2011
- 11 -
Marcf:l 1 J . 201 2
Item 10
FILED SEP 03, 2015
DOCUMENT NO. 05524-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
CAPITAL CIRCLE OFFICE CENTER • 2540 SHUMARD OAK BOULEVA IW
TALLAHASSEE, FLORIDA 32399-0850
-M-E-M-0-R-A-N-D-U-M-
DATE :
TO:
FROM :
RE:
-
September 3, 2015
U1
Office of Commission Clerk (S tauffer)
$
f_D)~
Division ofEconomics (Draper)
Division of Engineering (Ellis, Wooten) fbe ffV
Office of the General Counsel (Leathers, Crawford)
(/)
r'1
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-PI
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Docket No. 150 177-EI - Joint petition by Tampa E lectric Company, Duke Energy
Florida, and Mosaic Ferti lizer, LLC, for approval of intermittent e lectric standby
power agreement.
AGENDA: 09/15/15 - Regular Agenda - Proposed Agency Action - Interested Persons May
Participate
COMMISSIONERS ASSIGNED:
All Comm issioners
PREHEARI NG OFFICER:
Administrative
CRITICAL DATES:
None
SPECIAL INSTRUCTIONS :
None
Case Background
On July 3 1, 2015, Tampa Electric Company (Tampa Electric), Duke Energy Florida (Duke), and
Mosaic Fertilizer, LLC (Mosaic) Uointly petitioners) fi led a joint petition for approval of an
intermittent electric standby power agreement (agreement). Mosaic is in the business of mining
and processing phosphate, and manufacturing fertilizer. Mosaic has operations in the service
territories of Tampa E lectri c, Duke, and other utilities. On August 2 1 and A ugust 3 1, 20 15, the
petitioners provided responses to staffs data requests. It appears that thi s agreement is the first of
its type to come before the Comm ission. The Commission has jurisdiction pursuant to Section
366.04, Florida Statutes (F.S.).
Issue 1
Docket No. 150177-EI
Date: September 3, 2015
Discussion of Issues
Issue 1: Should the Commission approve the proposed intermittent electric standby power
agreement between Tampa Electric, Duke, and Mosaic?
Recommendation: Yes. The agreement is consistent with the Commission's policy of
encouraging agreements, promotes renewable energy, and has no immediate impact on Tampa
Electric's and Duke's general body of ratepayers. (Draper)
Staff Analysis: The proposed agreement addresses the supply of electric service to certain
Mosaic facilities located in Hardee County. Specifically, the Mosaic facilities at issue are the
South Pierce Generating Facilities (South Pierce) and the South Pasture Beneficiation Plant
(Pasture Plant). The agreement would allow Tampa Electric to provide intermittent standby
power to Mosaic during infrequent periods when generation from the.South Pierce facility is not
sufficient to serve the South Pasture load. The agreement becomes effective on the date of a final
Commission order approving the agreement for an initial term of ten years with an automatic
ten-year extension if all the parties to the agreement agree on an extension. Alternatively, the
parties can petition the Commission for a change in the agreement. The proposed agreement is
shown in Attachment A of the recommendation.
Mosaic Facilities
South Pierce
South Pierce is a qualifying cogeneration facility which consists of two steam-turbine generators
that generate energy from waste heat captured during the fertilizer production process. Mosaic
uses the electricity generated to self-service the South Pierce facility and sells excess energy to
Tampa Electric under the as-available COG-1 tariff. Tampa Electric provides service to South
Pierce under the Interruptible Standby and Supplemental Service rate schedule.
Pasture Plant
The Pasture Plant produces fertilizer products and is currently served by Duke under the
Interruptible General Service rate schedule. The Pasture Plant is located in Peace River Electric
Cooperative's (Peace River) service territory; however, pursuant to the territorial agreement
between Duke and Peace River, Duke provides service to the Pasture Plant because the facility
requires service at transmission level. The petitioners state that Peace River has read the
agreement and Peace River's consent to approval and implementation of the agreement is
attached as Exhibit B to the petition.
Transmission Line
Mosaic plans to build a ten-mile 69 kilovolt transmission line to connect the South Pierce
generating facilities to the Pasture Plant. The transmission line is referred to in the agreement as
the South Pasture Tie Line. Once Mosaic completes the construction of the transmission line,
Mosaic will direct the excess energy generated at the South Pierce facilities to serve the full load
of the Pasture Plant and the as-available sales to Tampa Electric will be reduced or eliminated.
Mosaic anticipates the transmission line will be constructed by March 31, 2016. The
transmission line will be owned by Mosaic and solely located on Mosaic-owned property, with
-2-
Issue 1
Docket No. 150177-EI
Date: September 3, 2015
the exception of crossings of public right of ways such as roads. This type of arrangement is
referred to as self-service. Staff notes that self-service is to be differentiated from self-service
wheeling which means transmission or distribution service provided by a public utility to enable
a retail customer to transmit electrical power generated by the customer at one location to the
customer's facilities at another location.
Proposed Agreement
The proposed agreement is designed for Tampa Electric to provide intermittent standby power to
Mosaic during infrequent periods when generation from the South Pierce facility is not sufficient
to serve the South Pasture load. As stated above, Tampa Electric currently provides standby
power to the South Pierce facility and will continue to do so, while Duke provides service to the
Pasture Plant. Once Mosaic's transmission line connects the South Pierce facility to the Pasture
Plant, Duke will not be able to provide standby power to the Pasture plant because only one
utility can be connected electrically to the Mosaic facilities at a time. The petitioners explained
that should the South Pierce facility go off-line, even for a short period of time, such that Tampa
Electric's standby service picks up, the time and expense associated with converting the Pasture
Plant load over to Duke would not be economic to the parties. Mosaic explained that a switch
from cogeneration service to Duke service and back translates into over.$300,000 in production
losses.
The petitioners explained that the infrequent circumstance under which Tampa Electric would
provide standby power to the Pasture Plant is when the South Pierce facility is de-rated or offline for repair or maintenance or when the Pasture Plant and other Mosaic load exceeds the
output of the South Pierce facility. If the South Pierce generation reduction is to be of a more
extended nature or if there is an interruption on the Mosaic transmission line, then the South
Pasture load will be transferred to Duke, consistent with the terms of the agreement.
The proposed agreement also provides for a 3,500 Megawatt-hour annual cap on the amount of
standby power Tampa Electric can provide to Mosaic. In response to staffs data request, the
petitioners explained that the purpose of the negotiated cap is to ensure that Tampa Electric's
standby service to Mosaic under the proposed agreement is infrequent and intermittent in nature
only. The agreement provides that if the cap is exceeded, Mosaic will disconnect the Pasture
Plant from the South Pierce facility and connect the Pasture Plant to Duke and purchase power
from Duke. Once Mosaic has purchased a certain amount of electricity from Duke as outlined in
the agreement, Mosaic will reconnect the Pasture Plant to its facilities and the cap will be reset to
zero.
Conclusion
The Supreme Court found that an individual does not have the right to service by a particular
utility merely because the individual deems it advantageous.• However, the proposed agreement
for intermittent standby power is confined to unique and limited circumstances as presented by
the facts of this case. The agreement maintains the current territorial boundaries for Tampa
Electric and Duke, while allowing Mosaic to self-generate power to serve the Pasture Plant load.
Furthermore, the Commission has recognized in several prior orders the need for flexibility in
1
Storey v. Mayo, 217 So. 2d 304 (Fla. 1968)
- 3-
Issue 1
Docket No. 150177-EI
Date: September 3, 2015
2
the provision of electric service to Mosaic's mining operations. The proposed agreement is
consistent with the Commission's policy of encouraging agreements, promotes renewable
energy, and has no immediate impact on Tampa Electric's and Duke's general body of
ratepayers. Therefore, staff recommends approval of the proposed intermittent electric standby
power agreement between Tampa Electric, Duke, and Mosaic.
2
Order No. PSC-10-0580-PAA-EU, issued September 22, 2010, In re: Joint petition for approval to extend
territorial settlement agreement by Progress Energy Florida, Inc., Tampa Electric Company, and The Mosaic
Company and Order No. PSC-02-0929-AS-EI, issued July 11, 2002, in Docket No. 020105-EI, In re: Joint petition
of Florida Power Corporation and Tampa Electric Company for expedited declaratory relief concerning provision
of electric service to an industrial customer's facilities located in Tampa Electric Company's Commission-approved
service territory.
-4-
Issue 2
Docket No. 150177-EI
Date: September 3, 2015
Issue 2: Should this docket be closed?
Recommendation: Yes. If no protest is filed by a person whose substantial interests are
affected within 21 days of the issuance of the Order, this docket should be closed upon the
issuance of a Consummating Order. (Leathers)
Staff Analysis: If no protest is filed by a person whose substantial interests are affected within
21 days of the issuance of the Order, this docket should be closed upon the issuance of a
Consummating Order.
-5-
Attachment A
Page I of 12
Docket No. 150177-EI
Date: September 3, 2015
INTERMITTENT ELECTRIC STANDBY POWER AGREEMENT
This Agreement Regarding Intermittent Electric Standby Power ("Agreement") is made
1
and entered this 26 h day of July, 2015 by and between Duke Energy Florida, Inc.
("DEF,.), Tampa Electric Company ("Tampa Electric") and Mosaic Fertilizer, LLC
("Mosaic") (collectively, "the Parties").
WHEREAS, Mosaic is engaged in the integrated business of mining, processing
phosphate, and manufacturing fertilizer in numerous counties in central and south
central Florida, and has operations and facilities located in the service territory of a
number of public utilities, including, but not limited to DEF, Tampa Electric and
PRECO; and
WHEREAS, DEF, Tampa Electric and Mosaic have entered into voluntary and cooperative
discussions regarding the supply of reliable electric service in a safe and
operationally acceptable manner to certain Mosaic facilities geographically
located in Hardee County, Florida; and
WHEREAS, the Parties have agreed to enter into this Agreement to facilitate the
provision of electricity to Mosaic upon terms and conditions that are acceptable to
the Parties as detailed herein; and
WHEREAS, the Parties recognize that, due to the specialized operations of Mosaic's
integrated phosphate operations, this Agreement benefits the Parties; is put in
place to deal with specific facts affecting Mosaic, and that this Agreement shall
have no precedential effect with respect to any other factual or legal issues or
EXHIBIT
I __"A"___
....;;..;;_
- 6-
Attachment A
Page 2 of 12
Docket No. 150177-EI
Date: September 3, 2015
circumstances beyond those unique to the Agreement and specifically addressed
herein.
NOW, THEI:IEFORE In consideration of the foregoing and other good and valuable
consideration, the receipt of which is hereby acknowledged by each Party, the
Parties do mutual agree as follows:
1.
DEFINITIONS:
a.
DEF South Pasture Standby Service Meter means: The DEF owned service meter
used by DEF to provide standby electric power to Mosaic at its point of
interconnection with Mosaic's South Pasture Beneficiation Plant. Electrical
connection from this meter to Mosaic will be normally open until standby service
is transferred from Tampa Electric to DEF at which point the electrical connection
to Tampa Electric through the South Pasture Tie Line will be severed through a Kirk
Key lock protocol.
b.
Fort Green 3 Substation Meter means: The ~osalc owned meter associated with
the Fort Green 3 substation which measures electricity flows on Mosaic's South
Pasture Tie Line to Mosaic's South Pasture Beneficiation Plant.
c.
Intermittent Electric Standby Power means: Electrical power that Tampa Electric
does not provide and sell to Mosaic on a regular basis, but that Tampa Electric
provides an~ sells to Mosaic at the South Pierce Standby Interruptible Service
Meter on an intermittent basis and that Mosaic transfers to its South Pasture
Beneficiation Plant over the South Pasture Tie Line when there Is insufficient
- 7-
Attachment A
Page 3 of 12
Docket No. 150177-EI
Date: September 3, 2015
generation from Mosaic's South Pierce Generating Facilities to meet the load of
Mosaic's South Pasture Beneficiation Plant.
d.
South Pasture Beneficiation Plant means: The Mosaic-owned phosphate
beneficiation facility located In Hardee County, Florida (Section 30- Township 33
South- Range 24 East), which processes mined phosphate materials in the
production of fertilizer products;
e.
South Pasture ne Line means: The planned approximately 10 mile extension of a
Mosaic-owned 69 kV transmission line which will connect Mosaic's South Pierce
Generating Facilities with Mosaic's South Pasture Beneficiation Plant;
f.
South Pierce Generating Facilities means: A Mosaic-owned 46.2 MW nameplate
capacity qualifying facility generating station which consists of two steam-turbine
generators that generate renewable energy from waste heat captured during the
production of sulfuric acid used In the integrated phosphate fertilizer production
processes.
g.
South Pierce Generator Meter means: Tampa Electric-owned meter and
associated equipment used by Tampa Electric to measure the generator output on
an hourly basis of Mosaic's South Pierce Generating Facilities associated with
providing standby interruptible service to Mosaic.
h.
South Pierce Standby Interruptible Service Meter means: The Tampa Electricowned service meter used by Tampa Electric to provide supplemental and standby
electric power to Mosaic at its point of interconnection with Mosaic's South Pierce
Generating Facilities.
3
- 8-
Attachment A
Page 4 of 12
Docket No. 150177-EI
Date: September 3, 2015
i.
Tampa Electric Intermittent Electric Standby Power 12 Month cap means: Up to
3,500 MWh annually of Tampa Electric-supplied and Mosaic-purchased
intermittent standby electricity that will flow through the South Pierce Standby
Interruptible Service Meter, and that will be transferred by Mosaic to the South
Pasture Beneficiation Plant over the South Pasture Tie-Line. The 3,500 MWh is an
annual cap, calculated monthly from the Effective Date of this Agreement and
each twelve months thereafter, unless the start month of the twelve month period
is changed pursuant to the process for exceedance of the cap set forth In
paragraph 6.
2.
Term: The initial term of this Agreement shall become effective as of the date of a
final Commission Order approving this Agreement without changes or
modifications to which any Party objects ("Effective Date"). The initial term of. this
Agreement shall be for ten years from the Effective Date with an automatic ten
year extension provided all the parties are satisfied with the Agreement. Within a
period of time between six months and three months prior to the end of the ten
year initial term, the parties shall meet and confer. The meeting shall provide an
opportunity for the parties to confirm their desire to extend the Agreement for
another ten year term or petition the Commission for a change In the Agreement.
3.
Point of Provision of Intermittent Electric Standby Power: Tampa Electric will
provide lntermi.ttent Electric Standby Power under this Agreement to Mosaic for
use by Mosaic at the South Pasture Beneficiation Plant through Tampa Electric's
South Pierce Standby Interruptible Service Meter and such electric power will be
4
-9-
Attachment A
Page 5 of 12
Docket No. 150177-EI
Date: September 3, 2015
delivered by Mosaic to the South Pasture Beneficiation Plant by Mosaic's South
Pasture Tie line.
4.
calculation and Reporting of Intermittent Electric Standby Power: Intermittent
Electric Standby Power supplied by Tampa Electric that flows through the South
Pierce Service Meter, and that will be purchased and transferred by Mosaic to the
South Pasture Beneficiation Plant over the South Pasture Tie·Une, will be
determined and calculated monthly by DEF based on hourly data. The calcula~ion
will be made by calculating the amount, if any, by which the South Pasture
Beneficiation Plant load as measured on the Fort Green 3 Substation Meter
exceeds the Mosaic-owned South Pierce total generation as measured by Tampa
Electric on the South Pierce Generator Meter, measured on an hourly basis.
OEF
shall provide to Mosaic and Tampa Electric a monthly report reflecting the
cumulative Intermittent Electric Standby Power provided to Mosaic during the 12
calendar months preceding the month in which the report Is submitted. The
determination of whether the Tampa Electric Intermittent Electric Standby Power
12 Month Cap has been exceeded will be made by reference to the cumulative
Intermittent Electric Standby Power reflected In the monthly reports provided by
DEF. Tampa Electric agrees to provide hourly South Pierce Generation Facilities
data and Mosaic agrees to permit DEF access to the Fort Green 3 Substation Meter
to facilitate DEF's acquisition of interval data and the determinations and
calculations of Tampa Electric Intermittent Standby Electric Power flows to the
South Pasture Beneficiation Plant. DEF shall provide the Parties with an annual
5
- 10-
Attachment A
Page 6 of I2
Docket No. 150177-EI
Date: September 3, 20 I5
report detailing the amount of Tampa Electric supplied Intermittent Standby
Electric Power provided to the South Pasture Beneficiation Plant.
5.
Authorized Charges: DEF is authorized to Include an additional monthly charse of
$200.00 to Mosaic's account maintained for the Mosaic South Pasture
Beneficiation Plant Interruptible Standby account to compensate DEF for its
reasonable costs and expenses associated with monitoring, calculating and
reporting Tampa Electric Intermittent Standby Electric Power flows as described In
paragraph 4 of the Agreement. DEF is further authorized to charge Mosaic in
accordance with its current Commission approved Rate Schedule, SS 2,
Interruptible Standby Service or any successor rate schedule, associated with the
new DEF South Pasture Standby Service Meter that will be used to measure DEF
service to South Pasture Beneficiation Plant whenever standby electrical service Is
transferred from Tampa Electric to DEF.
6. Exceedance of Tampa Electric Intermittent Standby Electric: Power 12 Month
cap: If the Tampa Electric Intermittent Standby Electric Power 12 Month Cap Is
exceeded during any month as reflected In monthly reports submitted by DEF
pursuant to paragraph 4, within 30 days of issuance of subject report, and
Mosaic's reasonable verification and confirmation of same within 15 days of
receipt of such information, Mosaic will disconnect the South Pasture
Beneficiation Plant from the South Pierce Generation Facility and connect the
South Pasture Beneficiation Plant to the DEF South Pasture Standby Service
Meter. Mosaic will then purchase (at a minimum) an amount of Standby Service
6
- II -
Attachment A
Page 7 of 12
Docket No. 150177-EI
Date: September 3, 2015
MWh from DEF that equals or exceeds the total amount of Tampa Electric
Intermittent Electric Standby Power MWh consumed during the relevant 12 month
period during which the Tampa Electric Intermittent Standby Electric Power 12
Month Cap was measured and exceeded. When the Standby Service MWh from
DEF has met or exceeded that prior service from Tampa Electric, Mosaic will
reconnect the South Pasture Beneficiation Plant to the South Pasture Tie
Line. Upon reconnectlon of the South Pasture Beneficiation Plant to the South
Pasture Tie Line, the Tampa Electric Intermittent Electric Standby Power 12 Month
Cap will be reset to zero (0) MWh, and the 12 month period for measuring
exceedances will be restarted. The parties will use their normal billing cycles for
the purposes of gathering data and preparing reports as set forth in this
Agreement.
7. Notification of Additions to the south Pasture Tie Line and Material Changes to
the South Pierce Generating Facilities: MosaiG will timely notify Duke and Tampa
Electric prior to adding any electric loads in Hardee County to the South Pasture
Tie line which are remote from the South Pasture Beneficiation Plant and not
capable of being measured by the Fort Green 3 Substation Meter, and thus
included in DEF's monthly calculation of Tampa Electric Intermittent Standby
Electric Power as detailed in paragraph 4. Mosaic will timely notify DEF and Tampa
Electric prior to adding any additional Mosaic load of 6 MW or greater served
through or from the South Pasture Beneficiation Plant. Mosaic will timely notify
Duke and Tampa Electric prior to making any permanent material changes to the
7
- 12-
Attachment A
Page 8 of 12
Docket No. 150177-EI
Date: September 3, 2015
electric generating capacity of the South Pierce Generating Facilities, which either
increases or decreases the output of the units by 6 MW or greater, and will notify
Duke and Tampa Electric should major outages of a more permanent nature (e.g.,
extended outages or derations of the units or the sulfuric acid plants that provide
the steam to run the units). Notwithstanding the foregoing, however, such
notification will not Increase or have any impact on the amount of the Tampa
Electric Intermittent Electric Standby Power 12 Month Cap set forth in section 1(1).
8.
No Revenue Sharing: The Parties agree that none of the load servi"g obligations
entered into as part of this Agreement will result, at any time during its initial or
extended terms, in the sharing of revenues associated with service provided
hereunder between DEF and Tampa Electric.
9.
Dispute Resolution:
The Parties agree that should a dispute arise pursuant to
the terms of this Agreement, upon notification and request, they will meet in
person and in a good faith effort to use their respective best efforts to resolve the
dispute. This dispute resolution meeting shall be a condition precedent to any
Party taking regulatory or legal action.
10.
Effect of Agreement: The Parties agree that: (i) this Agreement is valid and
binding between them upon approval of the Commission; and (ii) this Agreement
or its terms shall have no precedential value or significance In any other legal
proceeding before this Commission or other tribunal.
8
- 13 -
Attachment A
Page 9 of 12
Docket No. 150177-EI
Date: September 3, 2015
11.
Assignment of Agreement:
The Parties agree that this Agreement may be
assigned to a corporate affiliate or successor In interest of any Party upon
advanced written notice to the other Parties.
12.
Presentation of Agreement to the Commission: The Parties agree to file an
executed copy of this Agreement with the Commission for review and approval as
expeditiously as possible, and to support the Commission's timely approval of this
Agreement without modification.
13.
Changes to the Agreement:
Any change to this Agreement shall be made in
writing, signed by all Parties.
14.
Extension of the Agreement: If the Parties agree to jointly file a request to extend
this Agreement beyond the automatic ten year extension contemplated In Section
2, such request shall be filed at least three (3) months before the expiration of that
automatic ten year extension. The Agreement shall continue In full force and
effect beyond the end of the ten year extension while the Commission is.
considering whether to approve the further extension of the Agreement.
15.
Reservation of Rights: The Parties reserve all legal rights and remedies they may
otherwise possess.
16.
Entire Agreement: This Agreement represents the complete and entire
understanding and agreement between the Parties and any terms or provisions
not set forth in this Agreement are not enforceable.
9
- 14-
Attachment A
Page 10 of 12
Docket No. 150177-EI
Date: September 3, 2015
INTERMITTENT ElECfRIC SJAND8Y POWER AGREEMENT SIGNATURE pAGE
Duke Energy Florida, Inc.
Post Office Box 14042
St. Petersburg. flo~d~~
Slgnatu111:
~
Name (print):
ALBY /5LDvN
Date:
Cfie/'1 Z~, 7,/)1$
Tampa Electric Company
702 North Franklin Street
Tampa, Florida 33602
Witness::-_ _ _ _ _ __
Signature:
Witness: _ _ _ _ _ _ __
Name (print): - - - - - - - Date:
Mosaic Fertilizer. LLC
13830 Circa Crossing Orlve
Uthla, Florida 33547
Witness: _ _ _ _ _ _ __
Signature:
Witness:__________
Name (print): - - - - - - - Date:
10
- 15 -
Attachment A
Page 11 of 12
Docket No. 150177-EI
Date: September 3, 2015
INTERMirrENT ELECTRIC STANDBY POWER AGREEMENT SIGNATURE PAGE
Duke Energy Florida, Inc.
Post Office Box 14042
St. Petersburg, Florida 33733
Witness: _ _ _ _ _ _ _ __
Signature:
Witness:_ _ _ _ _ _ _ __
Name (print): - - - - - - Date:
Tampa Electric Companv·
702 North Franklin Street
Tampa, Florida 33602
Signature:
4~
Name (print):
borJ.oJe. L 6 'll'- \k_
Date:
1/z..r/r
$
Mosaic Fertilizer, LLC
13830 Circa Crossing Drive
Lithia, Florida 33547
Witness: _ _ _ _ _ _ __
Signature:
Witness:._ _ _ _ _ _ _ __
Name (print): - - - - - - - Date:
10
- 16-
Attachment A
Page 12 of 12
Docket No. 150177-EI
Date: September 3, 2015
INTERMITTENT ELECfRIC STANDBY POWER AGREEMENT SIGNATURE PAGE
Duke Energy Florida, Inc.
Post Office Box 14042
St. Petersburg, Florida 33733
Witness:,_ _ _ _ _ _ _ __
Signature:
Witness: _ _ _ _ _ _ _ __
Name (print): - - - - - - - Date:
Tampa Electric Company
702 North Franklin Street
Tampa, Florida 33602
Witness:...___ _ _ _ _ _ __
Signature:
Witness:--------
Name (print): - - - - - - - Date:
Mosaic Fertilizer, LLC
13830 Circa Crossing Drive
lithia, Florida 33547
Signature:
Name (print):
Date:
7
(\
4/)~
c;k~ IV l::avr s
]/23},~
r
1
10
- 17-
Item 11
FILED SEP 03, 2015
DOCUMENT NO. 05514-15
FPSC - COMMISSION CLERK
State of Florida
Public Service Commission
CAP ITAL C IRCLE O FFICE CE 'TER • 2540 SII Ui\I A RD O AK B OULEVARD
T ALI.AIIASSEE, FLORIDA 32399-0850
-M-E-M-0 -R-A-N-D-U-M__..
(/)
DATE :
rr1
-o
September 3, 20 15
TO :
Office of Comm ission Clerk (Stauffer)
FROM :
D ivision ofEconomi cs (Draperf /
Offi ce of the General Counsel (J anj ic)
RE :
.
I
w
~
u::>
CJ1
<:1"'
Docket No. 150 178 -EI - Petition fo r approval of tariff rate changes to implement
approved step increase by Tampa Electric Company.
AGENDA: 09115/15- Regular Agenda - Tariff Fi li ng- Participation is at the d iscretion of the
Commission
COMMISSIONERS ASSIGNED: All Comm issioners
PREHEARING OFFICER:
Administrative
CRITICAL DATES:
Pursuant to Order No. PSC- 13-0443-FOF-E I tariff is
effective fi rst bi ll ing cyc le in November 20 15
SPECIAL INSTRUCTIONS:
None
Case Background
On A ugust 3, 20 15, Tampa Electric Company (Tampa E lectric) filed a petition fo r approval of
tariff rate changes to implement an approved step increase. The step increase was approved in
o. PSC-1 3-0443 -FOF-EI, in which the Comm issio n approved a stipu lation and
Order
settlement in Tampa Electric 's 2013 rate case (settlement o rder).' The settlement order provides
a phased-in approach to the rate increase: an initial $57.5 mi ll ion increase effective November
20 13, an additi onal $7.5 mi ll ion increase effective November 20 14, and an addi tional $5 mi ll ion
increase effecti ve Novem ber 20 15.
During the 2015 session, the Legislature enacted CS/ HB 7 I 09, whi ch provides that:
1
Order No. PSC- 13-0443-FOF-EI, iss ued September 30, 20 13, in Docket No. 130040-EI, In re: Petition for rate
increase by Tampa Electric Company.
Docket No. 150178-EI
Date: September 3, 2015
New tariffs and changes to an existing tariff, other than an administrative change that
does not substantially change the meaning or operation of the tariff, must be approved by
the majority vote of the commission, except as otherwise specifically provided by law.
This is staffs recommendation on Tampa Electric's proposed tariffs to implement the $5 million
increase effective November 2015. The Commission has jurisdiction pursuant to Chapter 366,
Florida Statutes, (F.S.).
-2-
Issue 1
Docket No. 150178-EI
Date: September 3, 2015
Discussion of Issues
Issue 1: Should the Commission approve Tampa Electric's tariff rate changes to implement the
step increase approved in the settlement order?
Recommendation: Yes, the Commission should approve Tampa Electric's tariff rate changes
to implement the step increase approved in the settlement order. Pursuant to the settlement order,
the rate changes should become effective with the date of the meter reading for the first billing
cycle of November 2015, which falls on November 1, 2015. Tampa Electric should notify
customers of the approved new rates in the October bills. (Draper)
Staff Analysis: Tampa Electric's petition includes the proposed tariff sheets, the allocation of
revenue increase to the various rate classes, calculations showing the revenue from sale of
electricity by rate schedule under current and proposed rates, and bill comparisons for the
various rate classes under current and proposed rates. A residential customer who uses 1,000
2
kilowatt-hours (kwh) per month will see an increase of $0.45 on the monthly bill.
The cost of service methodology and allocation of the increase to the rate classes has been
addressed in the settlement. The only adjustment the settlement provides for is to reflect actual
residential tier proportion billing determinant data (i.e., usage below 1,000 kwh and usage above
1,000 kwh) on a 12-month basis ending July 31, 2015. The residential tier proportion billing
determinants are used to calculate the inverted non-fuel energy charges.
Attachment A to the recommendation shows current and proposed base rates for the major rate
classes. The settlement order provides that the interruptible rate schedules receive no change to
the base rate charges in effect at the time of Tampa Electric's filing of the 2013 rate case, and the
General Service Demand base energy charge remains at 1.583 cents per kwh, with the increase
being allocated to the demand charge.
Staff has reviewed Tampa Electric's proposed tariff sheets and supporting documentation. The
calculations are correct and reflect the settlement order. The Commission should approve Tampa
Electric's tariff rate changes to implement the step increase approved in the settlement order.
Pursuant to the settlement order, the rate changes should become effective with the date of the
meter reading for the first billing cycle of November 2015, which falls on November 1, 2015.
Tampa Electric should notify customers of the approved new rates in the October bills.
2
The current 1,000 kwh residential bill is $108.47 and will increase to $108.92, or by $0.45.
- 3-
Issue 2
Docket No. 150 178-EI
Date: September 3, 2015
Issue 2: Should this docket be closed?
Recommendation:
(Janjic)
Yes, if the Commission approves Issue 1, the docket should be closed.
Staff Analysis: If the Commission approves Issue I , the docket should be closed.
-4-
Attachment A
Docket No. 150 178-EI
Date: September 3, 2015
Present and Proposed Rates for Major Rate Schedules
Proposed
Current
Residential Service
General Service Non Demand
General Service
Demand
Basic Service Charge
$15
$15
51
Energy Charge (1 1,000 kwh)
4.650 ¢/kwh
4.694 ¢/kwh
Energy Charge (above 1,000 kwh)
5.650 ¢/kwh
5.694 ¢/kwh
Basic Service Charge
$18
$18
Energy Charge
4.965 ¢/kwh
5.009 ¢/kwh
Basic Service Charge (Sec. Metering)
$30
$30
Energy Charge
1.583 ¢/kwh
1.583 ¢/kwh
Demand Charge
9.22 $/kw
9.25 $/kw
-5-
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