Florida Public Service Commission native order document 02429-2024

FILED 4/26/2024
DOCUMENT NO. 02429-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Proposed Rule 25-30.0372, A lt erna ti ve
Procedure for Estab li shing Rate Base Value of
Ac uired Utilit 	S stem.
DOCKET NO. 20230 123-WS
_ __.______.___.____________.
ORDER NO. PSC-2024-0136-FOF-WS
ISSUED: Apri l 26, 2024
NOT ICE OF ADOPTION OF RULE
NOTICE is hereby given that the Florida Public Service Commission, pursuant to Section
120.54, Florida Statutes, has adopted without changes Rule 25 -30.0372, Florida Administrative
Code.
The rule was filed with the Department of State on Apri l 25, 2024, and will be effective
on May 15, 2024. 	A copy of the rule as filed with the Department is attached to this Notice.
ss
This docket is closed upon issuance of this Notice.
By ORDER of the Florida Public Service Commission this 26th day of April, 2024.
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.com
Copies furnished: 	A copy of this document is
provided to the parties of record at the time of
issuance and, if app li cable, interested persons.

ORDER NO. PSC-2024-0136-FOF-WS
DOCKET NO. 20230123-WS
P AGE2
2 5- 30.0372 Alte rn ati ve Proc edure for Es tablishing Rate Ba se Valu e of Acquired Utility System.
( 1) Definition. For the purposes of this rule, "Licensed Appraiser," as referenced in Section 367.0811 (4){a),
F.S., means a person who meets all the following criteria:
(a) Has certification as an Accredited Senior Appraiser by the American Society of Appraisers (ASA),
designation as a Certified Valuation Analyst by the National Association of Certified Valuators and Analysts
(NACY A), designation as a Certified Business Appraiser by the Institute of Business Appraisers (!BA), or
designation as Accredited in Business Valuation by the American Institute of Certified Public Accountants
(A ICPA), and
(b) Is in good standing with the ASA, NACY A, IBA, or AICP A.
(2) Appraisals.
{a) Each appraisal must assess the value of the utility system being acquired according to its intended use.
{b) The Executive Director of the Florida Public Service Commission or their designee will randomly choose
the three licensed appraisers from the list of licensed appraisers referenced in paragraph {2)(d) of this rule using
computationally-generat ed random numbers.
{c) The licensed engineer who perfom1s the engineering assessment required by Section 367.0811 {4){b), F.S.,
may not also serve as a licensed appraiser on the same acquisition transaction.
{d) The list of licensed appraisers required by Section 367 .081 I(4)(a), F.S., can be found at
www.floridapsc.com/appraiserlist or obtained from the Office of the Commission Clerk, Florida Public Service
Commission, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850.
(e) A licensed appraiser will be included on the Commission's list of approved licensed appraisers by
submitting all of the following to appraiserlist@psc.state.fl.us or the Office of the Commission Clerk, Florida Public
Service Commission, 2540 Shumard Oak Boulevard, Tallahassee, FL 32399 -0850:
I. The licensed appraiser's name, mailing address, telephone number, and email address:
2. The name of any company with which the licensed appraiser is employed or associated: and
3. Proof of the infom1ation required by subsection (I) above.
(Q It is the responsibility of t he licensed appraiser to ensure that correct and updated information remains on file
with the Commission. The licensed appraiser must submit updated information to appraiserlist@psc.state.tl.us

ORDER NO. PSC-2024-0136-FOF-WS
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within 30 days of any change of information. If the Commission determines that a person no longer meets the
requirements to be a licensed appraiser on the Commission's li s t, that person will be removed from the list. Upon
request and upon providing proof that the requirements listed in subsection (I) above are met, a person will be added
back to the list.
(g) The licensed appraiser can be removed from the list by submitting a request for removal in writing to
appraiserlist@psc.state. fl. us.
(3) Petition. Section 367 .08 I I(5), F.S., sets forth the filing requirements a petition to establish the rare base
value must contain.
{a) The petition may be filed concurrent with the application to transfer the certificate{s) of authorization, but
must be filed no later than 6 months after the issuance of the final order approving the transfer of the certificate(s) of
authorization or the closing date of the sale. Commission staff will review the petition and within 30 days of receipt
of the petition will notify the acquiring utility whether the petition is complete or identify the information required
by Section 367.0811 (5), F.S., which is missing from the petition. Jf an amended petition is filed, Commission staff
will review the amended petition and within 30 days of receipt of the amended petition will notify the acquiring
utility whether the amended petition is complete or identify the information required by Section 367.0811(5), F.S.,
which is missing from the amended petition. This process will continue until Commission staff determines the
petition satisfies the requirements of Section 367.0811 (5), F.S. The date a petition is complete under Section
367.0811 {6), F.S., is the date that all documents required by Section 367.0811 (6), F.S. have been filed.
(b) If the assessment of tangible assets required bv Section 367.0811 (4)(b). F.S., identifies deficiencies, the 3-
year plan required by Section 367 .08 l 1(5)(d), F.S., must include the following, if existing, regarding the system
being acquired:
I. A copy oflhe most recent DEP and/or county health department sanitary survey, compliance inspection
report, primary and secondary standards drinking water report; and
2. A copy of all correspondence with the DEP, county health department, and water management district,
including consent orders and warning letters, and the utility's responses to the same, for the past five years.
(c) Fonn PSC I 035 (03/24), entitled ·' Water and/o r Wastewater Cumulative Present Value of the Revenue
Requirements for Alternate Rate Base Worksheet" (CPYRR), which is incorporated by reference in this rule and

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may be obtained from htt11_;__\, ,, ,,_,.!)ruk-;.mg. (,me,, ,l,) rcfi.•r.:ncc.a)o[l'?~o Rd: I 6"89. must be included in the
petition to show the 5-vear projected rate impact required by Section 367.0811 (5)(e). F.S. The fonn can also be
found at www.tloridapsc.com. or obtained from the Office of the Commission Clerk, Florida Public Service
Commission. 2540 Shumard Oak Boulevard, Tallahassee. Florida 32399-0850.
(d) The 5-year rate impact required by Section 367.0811(5)(e). F.S., must also include the following for each
year for residential and general service customers. and the CPYRR must support the projections for the following:
I. Base facility charge.
2. Gallonage charge. and
3. Billing determinants.
(e) The information filed under Section 367 .0811 (5)(e), F.S .• must include the acquiring utility's proposed
journal entries anticipated to result from the acquisition, including tax entries and account numbers in conformance
with the 1996 NARUC Un iform System of Accounts. which is incorporated bv reference in Rule 25-30.115. F.A.C.
(Q For purposes of detennining whether the petition must include a rate stabilization plan under Section
367 .0811 (5)(h). F.S .• "significant individual increase in rates" means a rate increase during any twelve consecutive
months of the 5-year projected rate impact period that is in excess of 15 percent over the current rates of the utility
system being acquired.
(4) General filing instruction. Prepared direct testimony and exhibits for each witness testifying on behalf of the
acquiring utility must be filed at the time the petition is filed.
(5) Notice. At the t ime the petition is filed with the Commission, the acquiring utility must provide a draft
notice for review by Commission staff. Commission staff will review the draft notice within 7 days. Once staff has
approved the notice. the acquiring utility must provide notice by regular mail to the Office of Public Counsel and by
regular mail or personal service to each customer and owner ofprope1ty located within the service area for both the
acquiring utility and the utility being acquired, to th e extent the utilities' customers are within the Commission's
jurisdiction. The notice required by this rule may be combined with the notice of Application for Authority to
Transfer issued pursuant to Rule 25-30.030. F.A.C .• or for existing customers. the notice may be included in their
next bill. The notice must contain:
(a) Title: Notice of Utility's Petition to Establish Rate Base Value Using Alternative Procedure;

ORDER NO. PSC-2024-0136-FOF-WS
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(b) A statement that the utilitv has filed a petition with the Commission to establish rate base value of acquired
utility system using the alternative procedure set forth in Section 367.0811. F.S.:
(c) The date the petition was filed with the Commission:
{d) The docket number associated with the petition:
(e) A statement of the 5-year pro jected rate impact or the anticipated effect of the requested rate base on rates
for the next five vears:
(QA statement that the utility' s petition is available on the Commission 's website:
(g) The acquiring utility's address. telephone number. and business hours: and
(h) A statement that any customer substantially affected by the petition may file a motion to intervene in
accordance with Rule 28-106.205. F.A.C.
Rulemaking Authority 367.0811 ( 1 1). FS. Law Implemented 367.0811, FS .• History- New