Florida Public Service Commission native order document 01143-2023

FILED 2/16/2023
DOCUMENT NO. 01143-2023
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Application for staff-assisted rate case in
Pasco County by A Utility Inc.
------------------~
DOCKET NO. 20210098-WU
ORDER NO. PSC-2023-0091-PAA-WU
ISSUED: February 16 , 2023
The following Commissioners participated in the disposition of this matter:
ANDREW GILES FAY, Chairman
ARTGRAHAM
GARY F. CLARK
MIKE LAROSA
GABRIELLA P ASSIDOMO
NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING RA TE INCREASE FOR A UTILITY INC. AND ORDER ON
RECOVERY OF RATE CASE EXPENSES, TEMPORARY RATES, AND ACCOUNTING
ADruSTMENTS
NOTICE is hereby given by the Florida Public Service Commission (Commission) that
the actions discussed herein, except for (1) the reduction of rates after four years based upon the
recovery of rate case expense, (2) the granting of temporary rates in the event of protest, and (3)
the requirement for proof of adjustment of books a nd records, are preliminary in nature and will
become final unless a person whose interests are substantially affected files a petition for a
formal proceeding, pursuant to Rule 25-22.029, Florida Administrative Code (F.A.C.). 	The
reduction of rates after four years, the granting of temporary rates in the event of protest, and the
requirement for proof of adjustment of books and records are procedural agency actions a nd
subject to reconsideration and appeal as described below under the he ading, "NOTICE OF
FURTHER PROCEEDINGS OR ruDICIAL REVIEW."
Case Background
A Utility Inc. (AUI or Utility) is a Class C utility serving 118 residential water customers
in Pasco County. 	The service area is located in the Southwest Florida Water Management District
(SWFWMD). 	The water system was initially built in 1963 to serve the residents of Tropical
Trailer Park in Zephyrhills, Florida. The Utility was granted an original certificate in 1974, a nd
was subsequently transferred four times before being transferred to AUI on May 20, 2021 .1
1 Order No. 6020, issued February 4, 1974, in Docket No. 1974037-W, In re: Application ofJohn W Beeman for a
certificate to operate a water utility in Pasco County, Florida; Order No. 6998, issued November 14, 1975, in
Docket No. 1974544-W, In re: Application for transf er of water utility dlb/a Tropical Utiliti es and Certificate No.
I 65-Wfrom John W Beeman to Fisher Am es and his wife, Helen Ames, in Pa sco County, Florida; Order No. 10151 ,
issued July 21, 1981, in Docket No. 19800253-W, In re: Application for th e transfer of Certificate No. I 65-W from
Fisher Am es and His Wife, Helen Am es , to Dale Hendryx, in Pa sco County; Order No. 11 946, issued May 19, 1983 ,
in Docket No. 19830048-W, In re: Application for transfer of Certificate No. 165-Wfrom Dale Hendryx to Barbara

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 2
The Utility’s rates were last set by us in 1988.2 According to AUI’s 2020 Annual Report, total
gross revenues were $20,667, and total operating expenses were $18,171, resulting in net
operating income of $1,950. On May 14, 2021, AUI filed an application for a staff-assisted rate
case. Our staff selected a test year ended December 31, 2020, for the instant case.
A virtual customer meeting was held on December 1, 2022, and four customers
participated. We have jurisdiction in this case pursuant to Sections 367.011, 367.081, 367.0812,
367.0814, 367.091, and 367.121, Florida Statutes (F.S.).
Review and Decision
1. Quality of Service
Pursuant to Section 367.081(2)(a)1, F.S., and Rule 25-30.433(1), Florida Administrative
Code (F.A.C.), we, in every rate case, shall make a determination of the quality of service
provided by the utility by evaluating the quality of the utility’s product (water) and the utility’s
attempt to address customer satisfaction (water and wastewater). The Rule requires that the most
recent chemical analyses, outstanding citations, violations, and consent orders on file with the
DEP and the county health department, along with any DEP and county health department
officials’ testimony concerning quality of service shall be considered. In addition, any customer
testimony, comments, or complaints shall also be considered. 	The operating condition of the
water system is addressed in Section 2.
A. 	Quality of Utility’s Product
In evaluation of AUI’s product quality, we reviewed the Utility’s compliance with DEP
primary and secondary drinking water standards. Primary standards protect public health, while
secondary standards regulate contaminants that may impact the taste, odor, and color of drinking
water. 	The most recent comprehensive chemical analyses were performed on August 3, 2021.
All results were in compliance with the DEP’s standards.
B. 	The Utility’s Attempt to Address Customer Satisfaction
We reviewed the complaints filed in our Consumer Activity Tracking System (CATS),
filed with the DEP, and received by the Utility for the test year and four years prior. 	No
complaints were recorded through the CATS system, the DEP, or the Utility during this time
period.
A virtual customer meeting was conducted on December 1, 2022. 	Four customers
participated at the customer meeting and addressed several issues including the rate increase, the
operation of the system, and the water pressure. 	Two of the customers expressed concerns
Cobb in Pasco County, Florida; Order No. 19163, issued April 18, 1988, in Docket No. 19871156-WU, In re:
Application for transfer of Certificate No. 165-W from Melvin Cobb to Allen LaFortune and Otis Fonder (Tropical
Park Water System) in Pasco County.
2 Order No. 21652, issued August 2, 1989, in Docket No. 19881601-WU, In re: Application of Allen LaFortune and
Otis Fonder for a staff-assisted rate case in Pasco County.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 3
regarding the size of the increase and indicated they had experienced issues of low water
pressure. 	Another customer voiced concerns regarding AUI’s financial state and the expenses
required to maintain the system. 	Finally, one customer stated that the water quality was good
and the water pressure had increased after improvements had been made to the system.
Representatives from the Utility and OPC attended the customer meeting. 	Mr. Troy
Fonder, representing AUI, stated that the Utility was in the process of replacing water mains in
the system, which would improve many of the water pressure problems; however, some of the
service lines to customers’ homes were very small in size and likely was the reason for the low
pressure. 	Comments from two customers were also filed in the docket file. 	One of the
customer’s comments stated an opposition to the size of the rate increase, and provided pictures
of residue in their water filter. The second customer comment stated that they had experienced
low water pressure and AUI’s well sheds were in disrepair. 	This customer’s comments on the
Utility’s facilities will be addressed further in Section 2.
Specific to water quality, the comments made by customers were largely related to low
water pressure and residue in the water. AUI indicated it is replacing water mains to address the
low pressure concerns. However, some of the low pressure issues experienced by customers
were likely due to the size of the customers’ individual water lines, which are not the
responsibility of the Utility. Additionally, no complaints were filed in CATS, with the DEP, or
the Utility, and AUI is in compliance with DEP water standards according to its last chemical
analysis. Therefore, we find that the quality of service provided by the Utility is satisfactory.
C. Conclusion
AUI is currently in compliance with the DEP standards; therefore, the quality of service
shall be considered satisfactory.
2. Infrastructure and Operating Conditions
Rule 25-30.225 F.A.C., requires that each water utility shall operate and maintain its
plant and facilities by employing qualified operators in accordance with the rules of the DEP in
order to provide safe and efficient service up to and including the point of delivery into the
piping owned by the customer. 	During a rate making proceeding, Rule 25-30.433(2), F.A.C.,
requires consideration of whether the infrastructure and operating conditions of the plant and
facilities are in compliance with Rule 25-30.225, F.A.C. In making this determination, we must
consider testimony of the DEP and county health department officials, sanitary surveys for water
systems and compliance evaluation inspections for wastewater systems, citations, violations, and
consent orders issued to the utility, customer testimony, comments, and complaints, and utility
testimony and responses to the aforementioned items.
A. 	Water System Operating Conditions
AUI’s water system has two wells with a combined pumping capacity range of 50 to 70
gallons per minute (gpm), one 220-gallon hydropneumatic storage tank, and two 850-gallon
bladder storage tanks. We reviewed the sanitary survey conducted by the DEP for determination

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 4
of the Utility’s overall water facility compliance. 	The sanitary survey conducted on December
27, 2022, indicated that the system was determined to be in compliance. As stated in Section 1,
one customer provided comments in the docket stating that the Utility’s well sheds were in
disrepair. 	The customer stated that they would be more accepting of the rate increase if
improvements to the system were addressed. No deficiencies related to AUI’s water sheds were
noted in the DEP sanitary survey, and the system was determined to be in compliance.
B. 	Conclusion
We find the infrastructure and operating conditions of A Utility Inc.’s water system are in
compliance with DEP regulations.
3. Used and Useful Percentages
AUI’s WTP consists of two wells with a combined pumping capacity ranging between
50 to 70 gpm, a 220-gallon hydropneumatic storage tank, and two 850-gallon hydropneumatic
bladder storage tanks. AUI’s water distribution system is composed of approximately 2,200 feet
of 2-inch polyvinyl chloride (PVC) pipe, 1,800 feet of 1.5-inch PVC pipe, 1,000 feet of 1.25-
inch PVC pipe, 1,200 feet of 1.25-inch galvanized pipe, and 300 feet of 1-inch galvanized pipe.
A. 	Used and Useful Percentages
Rule 25-30.4325, F.A.C., addresses the method by which the U&U of a water system is
determined. AUI’s U&U percentages were last determined in Docket No. 19881601-WU. In that
docket, we determined the Utility’s treatment facilities and distribution system were 100 percent
U&U. The Utility has not increased the capacity of its facilities and the service area is built out.
Therefore, consistent with our previous decision, we find the Utility’s WTP and distribution
system be considered 100 percent U&U.
B. 	Excessive Unaccounted for Water (EUW)
Rule 25-30.4325, F.A.C., additionally provides factors to be considered in determining
whether adjustments to operating expenses are necessary for EUW. 	EUW is defined as
“unaccounted for water in excess of 10 percent of the amount produced.” Unaccounted for water
is all water produced that is not sold, metered, or accounted for in the records of the Utility.
EUW is calculated by subtracting both the gallons sold to customers and the gallons used
for other services, such as flushing, from the total gallons pumped for the test year. 	AUI’s
customers are unmetered; therefore, we are unable to calculate EUW and find no adjustment to
purchased power and chemicals is needed.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 5
C. Conclusion
AUI’s WTP and distribution system shall be considered 100 percent U&U. Additionally,
we find no adjustment to purchased power and chemicals expenses shall be made for EUW.
4. Average Test Year Rate Base
The appropriate components of the Utility’s rate base include utility plant in service
(UPIS), land and land rights, accumulated depreciation, contributions-in-aid-of-construction
(CIAC), accumulated amortization of CIAC, and working capital. We selected the test year
ended December 31, 2020, for the instant rate case. According to Audit Finding No. 7,
Commission audit we determined that the Utility does not maintain a general ledger to record its
transactions, instead relying on a profit and loss (P&L) statement and a balance sheet in order to
track the balances in its accounts. We determined that the Utility’s books and records are not in
compliance with the National Association of Regulatory Utility Commissioners’ Uniform
System of Accounts (NARUC USOA). 	The corrective measures are discussed in Section 7 of
this Order. A summary of each component of rate base and the approved adjustments are
discussed below.
A. 	Utility Plant in Service
The Utility recorded UPIS of $97,700. During the audit, it was found that the Utility did
not make our ordered adjustments stemming from Order No. PSC-2021-0183-PAA-WU (2017
Transfer Order).3 Therefore, we decreased UPIS by $43,107. We made no further adjustments
to UPIS and therefore find an average UPIS balance of $54,593 ($97,700 - $43,107).
B. 	Land and Land Rights
The Utility recorded a land value of $19,300. In the 2017 Transfer Order, we determined
the original cost of the land was $1,000. There have been no additions to this account since the
prior rate case. 	To reflect our prior Order, we decreased land and land rights by $18,300.
Therefore, we find land and land rights balance of $1,000 ($19,300 - $18,300).
C. Accumulated Depreciation
The Utility recorded accumulated depreciation of $15,267. During the audit, it was found
that the Utility did not properly record accumulated depreciation. We recalculated accumulated
depreciation from January 1, 2017, to December 31, 2020, using the adjusted UPIS plant
balances from the 2017 Transfer Order, and the depreciation rates established by Rule 25-
30.140(2), F.A.C. As such, we increased accumulated depreciation by $33,692. we further made
an adjustment decreasing accumulated depreciation by $315 to reflect an averaging adjustment.
Therefore, we find an average accumulated depreciation of $48,645 ($15,267 + $33,692 - $315).
3 Order No. PSC-2021-0183-PAA-WU, issued May 20, 2021, in Docket No. 20170114-WU, In re: Application for
transfer of facilities and water Certificate No. 165-W in Pasco County from Allen LaFortune and Otis Fonder to A
Utility Inc.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 6
D. Contributions-In-Aid-Of-Construction
The Utility did not record any CIAC on its P&L statement or its balance sheet as of
December 31, 2020. 	However, we established a CIAC balance of $26,625 in its 2017 Transfer
Order. There have been no additions to CIAC since the last rate proceeding. Therefore, we find
a CIAC balance of $26,625.
E. 	Accumulated Amortization of CIAC
The Utility did not record any accumulated amortization of CIAC on its P&L statement
or its balance sheet as of December 31, 2020. 	According to the 2017 Transfer Order, CIAC is
fully amortized, therefore we find an accumulated amortization of CIAC of $26,625.
F. 	Working Capital Allowance
Working Capital is defined as the short-term investor-supplied funds that are necessary to
meet operating expenses. 	Consistent with Rule 25-30.433(3), F.A.C., we used the one-eighth
operation and maintenance (O&M) expense (less rate case expense) formula for calculating the
working capital allowance. Section 367.081(9), F.S., prohibits a utility from earning a return on
the unamortized balance of rate case expense. 	As such, for this calculation we removed the
recommended rate case expense of $341. This resulted in an adjusted O&M expense of $24,617
($24,958 - $341). 	Applying this formula, we find a working capital allowance of $3,077
($24,617 ÷ 8).
G. Rate Base Summary
In its response to the Commission audit, the Utility stated that as of January 1, 2021, the
Commission-ordered 	adjustments 	have 	been 	made 	for 	UPIS, 	land 	and 	land 	rights, 	and
accumulated depreciation.4 	Based on the foregoing, we find that the appropriate average test
year rate base is $10,026. Rate Base is shown on Schedule No. 1-A. The related adjustments are
shown on Schedule No. 1-B.
5. Rate of Return
AUI’s capital structure consists entirely of long-term debt and has been reconciled with
our approved rate base. 	The appropriate ROE is 10.45 percent which is based on the
Commission-approved leverage formula currently in effect. 5 We find an ROE of 10.45 percent
with a range of 9.45 percent to 11.45 percent, and an overall rate of return of 9.95 percent. The
ROE and overall rate of return are shown on Schedule No. 2.
4 Document No. 03342-2022, filed June 2, 2022.
5 Order No. PSC-2022-0208-PAA-WS, issued June 15, 2022, in Docket No. 20220006-WS, In re: Water and
wastewater industry annual reestablishment of authorized rate of return on common equity for water and
wastewater utilities pursuant to Section 367.081(4)(f), F.S.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 7
6. Test Year Revenues
AUI recorded total test year revenues of $20,722. The water revenues included only
service revenues. 	There are no miscellaneous revenues. 	AUI had a price index rate increase
subsequent to the test year. 	As a result, we annualized the test year revenues. 	Based on our
review of the Utility’s billing determinants and the price index rate increase, we determined test
year service revenues shall be $21,608. This results in an increase of $886 ($21,608 - $20,722)
to service revenues. The Utility has no miscellaneous service charges and thus, no miscellaneous
revenues. Based on the above, the appropriate test year revenues for the Utility are $21,608.
7. Operating Expenses
The Utility recorded operating expense of $12,614. The test year O&M expenses have
been reviewed by us, including invoices and other supporting documentation. 	We have made
several adjustments to the Utility’s operating expenses as described below. 	Many of our
adjustments reflect updated invoices from 2021, which we find more accurately reflect the
expense levels going forward. 	On November 16, 2022, the Utility provided a response to the
Staff Report filed on November 1, 2022. 6 In its response, the Utility prioritized concerns which
have been addressed in this Order.
A. 	Operation and Maintenance Expenses
Salaries and Wages – Employees (601)
The Utility did not record any salaries expense for the test year. 	In response to our
Staff’s Second Data Request (DR No. 2), the Utility calculated salaries expense of $3,874.7 We
find this amount is reasonable, and therefore approve a salaries expense of $3,874.
Purchased Power (615)
The Utility recorded purchased power expense of $401. 	Through discovery, the Utility
provided purchased power invoices for both of its locations.8,9 	Based on its calculations, we
increased purchased power expense by $772, approving a total purchased power expense of
$1,173 ($401 + $772).
Chemicals Expense (618)
The Utility recorded chemicals expense of $84. In response to our Staff’s First Data
Request (DR No. 1), the Utility provided invoices for two chlorine purchases during 2021. The
first invoice was from January 2021, for $89, and the second was from July 2021, for $90;
totaling $179 ($89 + $90). Therefore, we find a chemicals expense of $179.
6 Document No. 11370-2022, filed November 16, 2022.
7 Document No. 03343-2022, filed June 2, 2022.
8 Document No. 00041-2022, filed January 4, 2022.
9 Document No. 06273-2022, filed September 13, 2022.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 8
Materials and Supplies (620)
The Utility recorded materials and supplies expense of $3,723. 	We made an audit
adjustment decreasing this amount by $76, and therefore approve a materials and supplies
expense of $3,647 ($3,723 - $76).
Contractual Services – Professional (631)
The Utility recorded contractual services – professional expense of $3,450. 	In response
to DR No. 1, the Utility provided invoices totaling $5,326 paid to MCL Environmental Services
(MCL) for plant operations in 2021. 	This amount included $2,610 ($217.50 monthly) for well
operations, and invoices for work orders totaling $2,716 from January 2021 through December
2021. Therefore, we find a contractual services – professional expense of $5,326.
Contractual Services – Accounting (632)
The Utility did not record any expenses for contractual services – accounting for the test
year. We find it is necessary for the Utility to obtain professional accounting services in order to
maintain its books and records in accordance with NARUC standards. Because of this, through
DR No. 2, we requested the Utility obtain an estimate for professional accounting services. 	In
response to DR No. 2, the Utility provided an estimate from Henson & Murtha CPAs (Firm) to
bring the Utility’s books and records in compliance with Rule 25-30.110, F.A.C., and maintain
the books on a going-forward basis. The Firm provided a quote of $3,900 for its services. We
find this is a necessary service for the Utility, and therefore find a contractual services –
accounting fee of $3,900.
In the past, we have approved pro forma expenses with the requirement that the Utility
file an affidavit attesting that it has performed the related actions.10 	Therefore, we find, as pro
forma, the inclusion of the requested contractual services – accounting fee of $3,900, with a
requirement that the Utility file an affidavit with us, no later than May 1, 2023, attesting that it
has entered into a contract with the Firm. 	Should the Utility not enter into a contract with the
Firm by May 1, 2023, our staff shall file a recommendation addressing potential actions to be
taken.
Contractual Services – Testing (635)
The Utility did not record any contractual services – testing expense for the test year. In
response to DR No. 1, the Utility provided invoices from MCL for performing lab testing from
January 2021 through December 2021. 	These tests totaled $3,529, and therefore we find a
contractual services – testing expense of $3,529.
10 Order No. PSC-2013-0646-PAA-WU, issued December 5, 2013, in Docket No. 20130025-WU, In re: Application
for increase in water rates in Highlands County by Placid Lakes Utilities, Inc.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 9
Contractual Services – Other (636)
The Utility did not record any contractual services – other expense for the test year. 	In
response to DR No. 2, the Utility provided a contract effective January 1, 2023, between itself
and Rich Allbright Property Maintenance (Maintenance Company). 	This contract was for the
performance of professional property maintenance at a cost of $40 per month for each of the
Utility’s three lots. Combined, property maintenance for the Utility is $120 per month, or $1,440
annually. Therefore, we find a contractual services – other expense of $1,440.
Similar to contractual services – accounting, we find the inclusion of the requested
contractual services – other fee of $1,440, with a requirement that the Utility file an affidavit
with us, no later than May 1, 2023, attesting that it has executed the contract with the
Maintenance Company. 	Should the Utility not execute the contract with the Maintenance
Company by May 1, 2023, our staff shall file a recommendation addressing potential actions to
be taken.
Transportation Expense (650)
The Utility did not record any transportation expense for the test year. In response to DR
No. 2, the Utility estimates it travels 100 total miles monthly in providing water services. Using
the 2022 IRS business mileage rate of $0.625 per mile, we calculated transportation expense of
$750 ($0.625 x 100 miles x 12 months).11 Therefore, we find transportation expense of $750.
Rate Case Expense (665)
The Utility did not record any rate case expense. 	The Utility is required by Rule 25-
22.0407, F.A.C., to mail notices of the rate case overview, final rates, and four-year rate
reduction. We calculated noticing costs to be $348. We calculated the distance from the Utility
to Tallahassee as 253 miles. 	Based on the 2022 IRS mileage rate, we calculated a round-trip
travel expense to the Commission Conference, to include lodging, of $516. Additionally, the
Utility paid a $500 filing fee.12
We calculated total rate case expense as $1,364 ($348 + $516 + $500). This amount
amortized over four years is $341 ($1,364 ÷ 4 years). Therefore, we find an amortized rate case
expense of $341.
Bad Debt Expense (670)
The Utility did not record any bad debt expense for the test year. 	In the past, we have
used a percentage of total revenues to determine bad debt expense when a three year average was
11 https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022.
12 Document No. 07094-2021, filed June 28, 2021.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 10
not available.13 As such, we find a bad debt expense of 1 percent of total revenues. Therefore,
we find a bad debt expense of $216.
Miscellaneous Expense (675)
The Utility did not record any miscellaneous expense for the test year. 	However, in
response to DR No. 2, the Utility provided a list of costs which are necessary for running its
operations. These costs are listed in Table 1 below:
Table 1
Miscellaneous Expenses
Expense 	Amount
Consumer Confidence Report 	$125
Valve Exercising Cost 	150
Meter Accuracy Testing 	48
Florida Rural Water Association Annual Fee 	161
DEP Licensing Fee 	100
Total Miscellaneous Expenses 	$583
Source: Staff’s Second Data Request
We find the costs provided by the Utility in its response to DR No. 2 are appropriate.
Therefore, we find a miscellaneous expense of $583.
B. 	Operation and Maintenance Expense Summary
The Utility recorded test year O&M expense of $7,658. Based on the above adjustments,
we find the O&M expense be increased by $17,300. 	This results in total O&M expense of
$24,958 ($7,658 + $17,300). 	Our approved adjustments to O&M expense are shown on
Schedule No. 3-C.
C. Depreciation Expense
The Utility recorded depreciation expense of $3,818. 	Using the depreciation rates
prescribed in Rule 25-30.140, F.A.C., we decreased this amount by $3,385 based on certain plant
accounts being fully depreciated. 	Therefore, we find a depreciation expense of $433 ($3,818 -
$3,385).
13 Order No. PSC-2018-0552-PAA-WU, issued November 19, 2018, in Docket No. 20180022-WU, In re:
Application for staff-assisted rate case in Lake County by Pine Harbour Waterworks, Inc.; Order No. PSC-2018-
0553-PAA-WU, issued November 19, 2018, in Docket No. 20180021-WU, In re: Application for staff-assisted rate
case in Highlands County by Country Walk Utilities, Inc.; Order No. PSC-2017-0334-PAA-WS, issued August 23,
2017, in Docket No. 20160222-WS, In re: Application for staff-assisted rate case in Highlands County by LP
Waterworks, Inc.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 11
D. Taxes Other Than Income (TOTI)
The Utility recorded TOTI of $1,138. We increased TOTI by $292 due to an audit
adjustment. 	Additionally, we increased TOTI by $34 to reflect the appropriate regulatory
assessment fees (RAFs) based on corrected Utility test year revenues. These adjustments result
in a test year TOTI increase of $326 ($292 + $34).
As discussed in Section 9, we find revenues be increased by $8,588 to reflect the change
in revenue required to cover expenses and allow an opportunity to recover an operating margin
of 12 percent. As a result, TOTI shall be increased by $386 to reflect RAFs of 4.5 percent of the
change in revenues. Therefore, we find TOTI of $1,851 ($1,138 + $326 + $386).
E. 	Operating Expense Summary
The Utility recorded operating expenses of $12,614. The application of our approved
adjustments to the Utility’s operating expense result in a total operating expense of $27,242.
Operating expenses are shown on Schedule No. 3-A and the related adjustments are shown on
Schedule No. 3-B.
8. Operating Ratio Methodology
Rule 25-30.4575(2), F.A.C., provides that, in rate cases processed under Rule 25-30.455,
F.A.C., 	we 	will 	use 	the 	operating 	ratio 	methodology 	to 	establish 	the 	Utility’s 	revenue
requirement when its rate base is not greater than 125 percent of O&M expenses, less rate case
expense, and the use of the operating ratio methodology does not change the Utility’s
qualification for a SARC.
With respect to AUI, we have approved a rate base of $10,026. 	After removal of rate
case expense, we have calculated an O&M expense of $24,617 ($24,958 - $341). Based on our
approved amounts, the Utility’s rate base is 41 percent of its adjusted O&M expense. Based on
this ratio, the Utility qualifies for application of the operating ratio methodology.
9. Revenue Requirement
AUI shall be allowed an annual increase of $8,588 (39.75 percent). 	This will allow the
Utility the opportunity to recover expenses and earn an operating margin of 12 percent. 	The
calculations are shown below in Table 2.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 12
Table 2
Water Revenue Requirement
Adjusted O&M Expense 	$24,617
Operating Margin (%) 	12.00%
Operating Margin ($) 	$2,954
Water O&M Expense 	24,958
Depreciation Expense 	433
Taxes Other Than Income 	1,851
Revenue Requirement 	$30,196
Less Test Year Revenues 	$21,608
Annual Increase 	$8,588
Percent Increase 	39.75%
Source: Staff calculations.
10. Rate Structure
AUI is located in Pasco County and currently provides water service to 118 residential
and no general service customers. 	The Utility’s current rate structure for residential customers
consists of a monthly flat rate of $15.26. AUI currently does not have any meters to measure
water usage. In this proceeding, the Utility has not proposed to install any meters. Our preferred
rate structure is a base facility and gallonage charge rate structure. The conversion from flat to
metered rates would include the Utility earning a return on the meter investment as well as
additional billing costs. 	At this time, the Utility does not have any issues in terms of its
permitted withdrawal and a need for conservation-oriented rates. Thus, we do not find it would
be cost effective to require AUI to install meters and bill based on metered water usage.
Therefore, we find a continuation of the Utility’s current flat rate structure is appropriate. As a
result, our approved increase of 39.75 percent shall be applied to the existing monthly flat rate.
Based on the above, we approve a monthly flat rate for residential service of $21.33 per
month as shown on Schedule No. 4. 	The Utility shall file a revised tariff sheet and a proposed
customer notice to reflect our approved rate. 	The approved rate shall be effective for service
rendered or connections made on or after the stamped approval date on the tariff sheet provided
customers have received notice pursuant to Rule 25-30.475, F.A.C. 	The Utility shall provide
proof of noticing within 10 days of rendering its approved notice.
11. Four-Year Rate Reduction
Subsection 367.081(8), F.S., requires that the rates be reduced by the amount of the rate
case expense previously included in rates immediately following the expiration of the recovery
period. 	With respect to AUI, the reduction will reflect the removal of revenue associated with
the amortization of rate case expense and the gross-up for RAFs. 	The total reduction is $357.
We find that the rates shall be reduced as shown on Schedule No. 4, to remove rate case expense
grossed-up for RAFs and amortized over a four-year period. Pursuant to Subsection 367.081(8),
F.S., the decrease in rates shall become effective immediately following the expiration of the rate
case expense recovery period. 	AUI shall be required to file revised tariffs and a proposed

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 13
customer notice setting forth the lower rates and rationale no later than one month prior to the
effective date of the new rates. 	If the Utility files revised tariffs reflecting this reduction in
conjunction with a price index, or pass-through rate adjustment, separate data shall be filed for
the price index and/or pass-through increase and the reduction in the rates due to the amortized
rate case expense.
12 Appropriate Miscellaneous Charges
Section 367.091, F.S., authorizes us to establish miscellaneous service charges. 	The
purpose of these charges is to place the burden for requesting or causing these services on the
cost causer rather than the general body of ratepayers.
Violation Reconnection Charges
The Utility requested a violation reconnection charge. Pursuant to Rule 25-30.460,
F.A.C., a violation reconnection charge is levied prior to reconnection of an existing customer
after discontinuance of service for cause according to subsection 25-30.320(2), F.A.C. AUI does
not have any on-site personnel to perform disconnections. Therefore, a third-party vendor, MCL
Environmental Services, LLC, which is also the contract operator, will be used for this function.
The third-party vendor estimates $85 for disconnection and $70 for reconnection, or a total of
$155. AUI customers are not metered. As a result, disconnections and reconnections are labor
intensive, which involves digging up lines in order to cap and re-digging up lines to restore
service. We find the proposed disconnection and reconnection charges are reasonable.
Late Payment Charge
Currently, AUI does not have a late payment charge. 	A late payment charge recovers
administrative and supply cost for processing late payment notices. 	Historically, we have
allowed 15 minutes for processing late payment notices, actual cost of postage which is currently
$0.60, and supplies of $0.15. 	Based on the salary of the Utility personnel who processes late
notices, the labor component of the late payment charge is $3.50 ($14.00 hr x .25 hr). 	This
results in a late payment charge of $4.45. The cost for the late payment charge is shown below
on Table 3.
Table 3
Late Payment Cost Justification
Labor 	$3.50
Supplies/Postage 	$.75
Mark Up for RAFs 	.20
Total Calculated Charge 	$4.45
Source: Staff’s Calculation
Nonsufficient Funds Charges (NSF)
The Utility requested NSF charges pursuant to Section 68.065, F.S. 	We find that AUI
shall be authorized to collect NSF charges consistent with Section 68.065, 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 Section 68.065(2), F.S., the following NSF charges may be assessed:

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 14
1) 	$25, if the face value does not exceed $50,
2) 	$30, if the face value exceeds $50 but does not exceed $300,
3) 	$40, if the face value exceeds $300,
4) 	or 5 percent of the face amount of the check, whichever is greater.
Our approved miscellaneous service charges are shown in Table 4.
Table 4
Our Approved Miscellaneous Service Charges
Violation Reconnection Charge - Disconnect 	$85.00
Violation Reconnection Charge - Reconnection 	$70.00
Late Payment Charge 	$4.45
NSF Charges 	Pursuant to Section 68.065(2), F.S.
The appropriate miscellaneous service charges are shown above and shall be approved.
The Utility shall file revised tariff sheets and a proposed customer notice to reflect our approved
charges. 	The approved charges shall be effective for service rendered on or after the stamped
approval date on the tariff sheets pursuant to Rule 25-30.475(1), F.A.C. AUI shall be required to
charge the approved miscellaneous service charges until authorized to change them by us in a
subsequent proceeding.
13. Temporary Rates
After the increased rates are in effect, pursuant to Rule 25-30.360(6), F.A.C., the utility
shall file reports with the Commission’s Office of Commission Clerk no later than the 20th of
each month indicating both the current monthly and total amount subject to refund at the end of
the preceding month. The report filed shall also indicate the status of the security being used to
guarantee repayment of any potential refund.
This Order proposes an increase in rates. 	A timely protest might delay a rate increase
resulting in an unrecoverable loss of revenue to the Utility. 	Therefore, pursuant to Section
367.0814(7), F.S., in the event of a protest filed by a party other than the utility, we find that the
proposed rates be approved on a temporary basis. 	AUI shall file revised tariff sheets and a
proposed customer notice reflecting our approved rates. The approved rates shall be effective for
service rendered on or after the stamped approval date on the tariff sheet, pursuant to Rule 25-
30.475(1), F.A.C. 	In addition, the temporary rates shall not be implemented until our staff has
approved the proposed notice, and it has been received by the customers. The additional revenue
produced by our approved rates and collected by the Utility shall be subject to the refund
provisions discussed below.
AUI shall be authorized to initiate the temporary rates upon our approval of an
appropriate security for the potential refund and cost of the proposed customer notice. Security

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 15
shall be in the form of either a bond or letter of credit in the amount of $5,862. Alternatively, the
Utility may establish an escrow agreement with an independent financial institution.
If the Utility chooses a bond for securing the potential refund, the bond shall contain
wording to the effect that it will be terminated only under the following conditions:
1. We approve the rate increase; or,
2. If we deny the increase, the Utility shall refund the amount collected that is
attributable to the increase.
If the Utility chooses a letter of credit for securing the potential refund, the letter of credit
shall contain the following conditions:
1. The letter of credit is irrevocable for the period it is in effect.
2. The letter of credit will be in effect until a final Commission order is rendered, either
approving or denying the rate increase.
If security is provided through an escrow agreement, the following conditions shall be
part of the agreement:
1. The Commission Clerk, or his or her designee, must be a signatory to the escrow
agreement.
2. No monies in the escrow account may be withdrawn by the Utility without the prior
written authorization of the Commission Clerk, or his or her designee.
3. The escrow account shall be an interest bearing account.
4. If a refund to the customers is required, all interest earned by the escrow account
shall be distributed to the customers.
5. If a refund to the customers is not required, the interest earned by the escrow account
shall revert to the Utility.
6. All information on the escrow account shall be available from the holder of the
escrow account to a Commission representative at all times.
7. The amount of revenue subject to refund shall be deposited in the escrow account
within seven days of receipt.
8. This escrow account is established by the direction of the Florida Public Service
Commission for the purpose(s) set forth in its order requiring such account.
Pursuant to Cosentino v. Elson, 263 So. 2d 253 (Fla. 3d DCA 1972), escrow
accounts are not subject to garnishments.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 16
9. The account must specify by whom and on whose behalf such monies were paid.
In no instance shall the maintenance and administrative costs associated with the refund
be borne by the customers. 	These costs are the responsibility of, and shall be borne by, the
Utility. 	Irrespective of the form of security chosen by the utility, an account of all monies
received as a result of the rate increase shall be maintained by the Utility. 	If a refund is
ultimately required, it shall be paid with interest calculated pursuant to Rule 25-30.360(4),
F.A.C.
The Utility shall maintain a record of the amount of the bond, and the amount of revenues
that are subject to refund. In addition, after the increased rates are in effect, pursuant to Rule 25-
30.360(6), F.A.C., the Utility shall file reports with our Clerk’s office no later than the 20th of
every month indicating the monthly and total amount of money subject to refund at the end of
the preceding month. The report filed shall also indicate the status of the security being used to
guarantee repayment of any potential refund.
14. Adjustment to Books
AUI shall be required to notify us, in writing, that it has adjusted its books in accordance
with our decision. 	AUI shall submit a letter within 90 days of our final order in this docket,
confirming that the adjustments to all applicable NARUC USOA primary accounts have been
made to the Utility’s books and records. 	In the event the Utility needs additional time to
complete the adjustments, a notice providing good cause shall be filed not less than seven days
prior to the deadline. 	Upon providing a notice of good cause, our staff shall be given
administrative authority to grant an extension of up to 60 days.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that A Utility Inc. is currently in
compliance with the Department of Environmental Protection (DEP) standards; therefore, the
quality of service shall be considered satisfactory. It is further
ORDERED that the infrastructure and operating conditions of A Utility Inc.’s water
system are in compliance with DEP regulations. It is further
ORDERED that A Utility Inc.’s WTP and water distribution system shall be considered
100 percent Used & Useful and no adjustment to purchased power and chemicals expenses shall
be made for excessive unaccounted for water. It is further
ORDERED that the appropriate average test year rate base for A Utility Inc. is $10,026.
It is further
ORDERED that the appropriate return on equity is 10.45 percent with a range of 9.45
percent to 11.45 percent. The appropriate overall rate of return is 9.95 percent. It is further

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 17
ORDERED that the appropriate test year revenues for A Utility Inc. are $21,608. 	It is
further
ORDERED that the appropriate amount of operating expense for A Utility Inc. is
$27,242. It is further
ORDERED that A Utility Inc. meets the requirement for application of the operating ratio
methodology for calculating revenue requirement. It is further
ORDERED that the appropriate revenue requirement for A Utility Inc. is $30,196,
resulting in an annual increase of $8,588 (39.75 percent). It is further
ORDERED that the approved monthly flat rate for residential service of $21.33 per
month as shown on Schedule No. 4. 	The Utility shall file a revised tariff sheet and a proposed
customer notice to reflect the Commission-approved rate. 	The approved rate shall be effective
for service rendered or connections made on or after the stamped approval date on the tariff sheet
provided customers have received notice pursuant to Rule 25-30.475, F.A.C. The Utility shall
provide proof of noticing within 10 days of rendering its approved notice. It is further
ORDERED that the rates shall be reduced as shown on Schedule No. 4, to remove rate
case expense grossed-up for RAFs and amortized over a four-year period. 	Pursuant to Section
367.081(8), F.S., the decrease in rates shall become effective immediately following the
expiration of the rate case expense recovery period. A Utility Inc. shall be required to file revised
tariffs and a proposed customer notice setting forth the lower rates and rationale no later than one
month prior to the effective date of the new rates. If the Utility files revised tariffs reflecting this
reduction in conjunction with a price index or pass-through rate adjustment, separate data shall
be filed for the price index and/or pass-through increase and the reduction in the rates due to the
amortized rate case expense. It is further
ORDERED that the appropriate miscellaneous service charges are shown on Table 4 are
approved. 	The Utility shall file revised tariff sheets to reflect Commission-approved charges.
The approved charges shall be effective for service rendered on or after the stamped approval
date on the tariff sheets pursuant to Rule 25-30.475(1), F.A.C. A Utility Inc. shall be required to
charge the approved miscellaneous service charges until authorized to change them by this
Commission in a subsequent proceeding. It is further
ORDERED that Pursuant to Section 367.0814(7), F.S., are approved for the utility on a
temporary basis, subject to refund with interest, in the event of a protest filed by a party other
than the utility. 	A Utility Inc. shall file revised tariff sheets and a proposed customer notice
reflecting our approved rates. The approved rates shall be effective for services rendered on or
after the stamped approval date on the tariff sheet, pursuant to Rule 25-30.475(1), F.A.C. 	In
addition, the temporary rates shall not be implemented until our staff has approved the proposed
notice, and the notice has been received by the customers. 	Further, prior to implementing any
temporary rates, the utility shall provide appropriate financial security. It is further

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 18
ORDERED that A Utility Inc. shall be required to noti fy us, in writing, that it has
adjusted its books in accordance with the Commission's dec isi on. A Util ity Inc. shall submit a
letter within 90 days of the Commission's final order in this docket, confirming that th e
adjustments to all applicable National Association of Regulato ry Ut ility Co mmi ssioners Uniform
System of Accounts primary accounts have been made to the Utility' s books a nd reco rd s. In th e
eve nt the Utility ne eds additional time to complete the adjustments, a notice providing good
cause shall be filed not le ss than seven da ys prior to the deadline. 	Upon prov iding a noti ce of
good cause, our staff sha ll be given administrative authority to grant an extension of up to 60
da ys. It is further
ORDERED that if no person whose substantial interests are affected by th e propo se d
agency action files a protest within 21 days of the issuance of the Pr oposed Agency Action
Order, a Consummat in g Order sha ll be issued. 	The docket shall remain open for our verification
that the re vi sed tariff sheets and customer notice have been filed by the Ut ility and approved by
our staff. Once these actions are complete, this docket shall be c lo sed a dm ini stratively.
JOI
By ORDER of the Florida Public Service Commission this 16th day of Februa ry , 2023.
Commission 	erk
Florida Public Service Commission
2540 Shumard Oak Bouleva rd
Ta ll ahassee, Florida 32399
(850) 41 3-6770
www.floridapsc.com
Copies furni shed: 	A copy of this document is
provided to the parties of reco rd at th e time of
is suance and, if app li cable, interested persons.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 	120.569( I), Florida
Statutes, to notify parties of any administrative hearing or judicial rev iew of Commission o rd ers
that is available under Sections 120.57 or 120.68, Florida Statutes, as wel l as the procedures and
time limits that apply. 	This notice should not be construed to mean a ll 	req ue sts for an
administrative he aring or judicial review w ill be granted or re sult in the relief so ught.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU
PAGE 19
As identified in the body of this order, our actions are preliminary in nature, except for
(1) the reduction of rates after four years based upon the recovery of rate case expense, (2) the
granting of temporary rates in the event of protest, and (3) the requirement for proof of
adjustment of books and records. 	Any person whose substantial interests are affected by the
action proposed by this order may file a petition for a formal proceeding, in the form provided by
Rule 28-106.201, Florida Administrative Code. This petition must be received by the Office of
Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on March 9, 2023. If such a petition is filed, mediation may be available on a
case-by-case basis. 	If mediation is conducted, it does not affect a substantially interested
person's right to a hearing. 	In the absence of such a petition, this order shall become effective
and final upon the issuance of a Consummating Order.
Any objection or protest filed in this docket before the issuance date of this order is
considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest period.
Any party adversely affected by the Commission's procedural action in this matter may
request: (1) reconsideration of the decision by filing a motion for reconsideration with the Office
of Commission Clerk, within fifteen (15) days of the issuance of this order in the form prescribed
by Rule 25-22.060, Florida Administrative Code; or (2) judicial review by the Florida Supreme
Court in the case of an electric, gas or telephone utility or the First District Court of Appeal in
the case of a water or wastewater utility by filing a notice of appeal with the Office of
Commission Clerk and filing a copy of the notice of appeal and the filing fee with the
appropriate court. This filing must be completed within thirty (30) days after the issuance of this
order, pursuant to Rule 9.110, Florida Rules of Appellate Procedure. The notice of appeal must
be in the form specified in Rule 9.900(a), Florida Rules of Appellate Procedure.

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 1-A
PAGE 20
A UTILITY INC. 	SCHEDULE NO. 1-A
TEST YEAR ENDED 12/31/2020 	DOCKET NO. 20210098-WU
SCHEDULE OF WATER RATE BASE
BALANCE 	BALANCE
PER 	COMM. 	PER
DESCRIPTION 	UTILITY 	ADJUST. 	COMM.
1. 	UTILITY PLANT IN SERVICE 	$97,700 	($43,107) 	$54,593
2. 	LAND & LAND RIGHTS 	19,300 	(18,300) 	1,000
3. 	ACCUMULATED DEPRECIATION 	(15,267) 	(33,378) 	(48,645)
4. 	CIAC 	0 	(26,625) 	(26,625)
5. 	ACCUMULATED AMORTIZATION OF CIAC 	0 	26,625 	26,625
6. 	ACQUISITION ADJUSTMENT 	0 	0 	0
7. 	WORKING CAPITAL ALLOWANCE 	$0 	$3,077 	$3,077
8. 	WATER RATE BASE 	$101,733 	($91,707) 	$10,026

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 1-B
PAGE 21
A UTILITY INC. 	SCHEDULE NO. 1-B
TEST YEAR ENDED 12/31/2020 	DOCKET NO. 20210098-WU
ADJUSTMENTS TO RATE BASE
WATER
UTILITY PLANT IN SERVICE
To reflect Commission-ordered adjustments. 	($43,107)
LAND & LAND RIGHTS
To reflect an audit adjustment. 	($18,300)
ACCUMULATED DEPRECIATION
1. 	To reflect audit adjustments. 	($33,692)
2. 	To reflect an averaging adjustment. 	$315
Total 	($33,378)
CIAC
To reflect an audit adjustment. 	($26,625)
ACCUMULATED AMORTIZATION OF CIAC
To reflect an audit adjustment. 	$26,625
WORKING CAPITAL ALLOWANCE
To reflect 1/8 of test year O&M expenses. 	$3,077

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 2
PAGE 22
A UTILITY INC. 	SCHEDULE NO. 2
TEST YEAR ENDED 12/31/2020 	DOCKET NO. 20210098-WU
SCHEDULE OF CAPITAL STRUCTURE
SPECIFIC 	PRO RATA 	BALANCE 	PERCENT
PER 	ADJUST- 	ADJUST- 	PER 	OF 	WEIGHTED
CAPITAL COMPONENT 	UTILITY 	MENTS 	MENTS 	COMM. 	TOTAL 	COST 	COST
1. 	LONG-TERM DEBT 	$118,000 	$0 	($107,974) 	$10,026 	100.00% 	9.95% 	9.95%
2. 	SHORT-TERM DEBT 	0 	0 	0 	0 	0.00% 	0.00% 	0.00%
3. 	COMMON EQUITY 	0 	0 	0 	0 	0.00% 	10.45% 	0.00%
4. 	CUSTOMER DEPOSITS 	0 	0 	0 	0 	0.00% 	2.00% 	0.00%
5. 	DEFERRED INCOME TAXES 	0 	0 	0 	0 	0.00% 	0.00% 	0.00%
TOTAL CAPITAL 	$118,000 	$0 	($107,974) 	$10,026 	100.00% 	9.95%
RANGE OF REASONABLENESS 	LOW 	HIGH
RETURN ON EQUITY 	9.45% 	11.45%
OVERALL RATE OF RETURN 	9.95% 	9.95%

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 3-A
PAGE 23
A UTILITY INC. 	SCHEDULE NO. 3-A
TEST YEAR ENDED 12/31/2020 	DOCKET NO. 20210098-WU
SCHEDULE 	OF 	WATER 	OPERATING
INCOME
TEST 	COMM 	COMM 	ADJUST
YEAR
PER
ADJUS
T-
ADJUST
ED
FOR 	REVENUE
UTILIT
Y
MENT
S
TEST
YEAR
INCREA
SE
REQUIREM
ENT
1
.
TOTAL 	OPERATING
REVENUES
$20,722 	$886 	$21,608 	$8,588 	$30,196
39.75%
OPERATING EXPENSES:
2
.
OPERATION 	&
MAINTENANCE
$7,658 	$17,300 	$24,958 	$0 	$24,958
3
.
DEPRECIATION (NET) 	3,818 	(3,385) 	433 	0 	433
4
.
AMORTIZATION 	0 	0 	0 	0 	0
5
.
TAXES 	OTHER 	THAN
INCOME
1,138 	326 	1,464 	386 	1,851
6
.
INCOME TAXES 	0 	0 	0 	0 	0
TOTAL 	OPERATING
EXPENSES
$12,614 	$14,241 	$26,856 	$386 	$27,242
7
.
OPERATING 	INCOME 	/
(LOSS)
$8,108 	($5,248) 	$2,954
8
.
WATER RATE BASE 	$101,733 	$10,026
9
.
OPERATING MARGIN 	12.00%

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 3-B
PAGE 24
A UTILITY INC. 	SCHEDULE NO. 3-B
TEST YEAR ENDED 12/31/2020 	DOCKET NO. 20210098-WU
ADJUSTMENTS TO OPERATING INCOME 	PAGE 1 OF 2
WATER
OPERATING REVENUES
1. 	To reflect an auditing adjustment to Service Revenues. 	$136
2. 	To reflect the appropriate test year Service Revenues. 	750
Total 	$886
OPERATION AND MAINTENANCE EXPENSE
1. 	Salaries and Wages - Employees (601)
To reflect 2021 salaries per DR No. 2. 	$3,874
2. 	Purchased Power (615)
To reflect annual amount per DR No. 1. 	$772
3. 	Chemicals Expense (618)
To reflect 2021 chlorine expenses per DR No. 1. 	$95
4. 	Materials and Supplies (620)
To reflect an auditing adjustment. 	($76)
5. 	Contractual Services - Professional (631)
To reflect 2021 operating fees per DR No. 1. 	$1,876
6. 	Contractual Services - Accounting (632)
To reflect estimate provided in DR No. 2. 	$3,900
7. 	Contractual Services - Testing (635)
To reflect 2021 testing per DR No. 1. 	$3,529
8. 	Contractual Services - Other (636)
To reflect lawn maintenance bid per DR No. 2. 	$1,440
9. 	Transportation Expense (650)
To reflect 2022 IRS travel expense for 1,200 annual miles per DR No. 2. 	$750
10. 	Rate Case Expense (665)
To reflect 1/4 rate case expense. 	$341

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 3-B
PAGE 25
A UTILITY INC. 	SCHEDULE NO. 3-B
TEST YEAR ENDED 12/31/2020 	DOCKET NO. 20210098-WU
ADJUSTMENTS TO OPERATING INCOME 	PAGE 2 OF 2
WATER
11. 	Bad Debt Expense (670)
To reflect 1.0 percent of test year revenues. 	$216
12. 	Miscellaneous Expense (675)
a. To reflect Consumer Confidence Report cost. 	$125
b. To reflect valve exercising cost. 	150
c. To reflect meter accuracy testing. 	48
d. To reflect Florida Rural Water Association annual fee. 	161
e. To reflect DEP licensing fee. 	100
Subtotal 	$583
TOTAL OPERATION AND MAINTENANCE ADJUSTMENTS 	$17,300
DEPRECIATION EXPENSE
To reflect an auditing adjustment. 	($3,385)
TAXES OTHER THAN INCOME
1. 	To reflect audit adjustments. 	$292
2. 	To reflect appropriate test year RAF’s. 	34
Total 	$326
TOTAL OPERATING EXPENSE ADJUSTMENTS 	$14,241

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 3-C
PAGE 26
A UTILITY INC. 	SCHEDULE NO. 3-C
TEST YEAR ENDED 12/31/2020 	DOCKET NO. 20210098-WU
ANALYSIS OF WATER O&M EXPENSE
TOTAL 	COMM 	TOTAL
PER 	ADJUST- 	PER
ACCT. # 	DESCRIPTION 	UTILITY 	MENT 	COMM
601 	Salaries and Wages - Employees 	$0 	$3,874 	$3,874
615 	Purchased Power 	401 	772 	1,173
618 	Chemicals 	84 	95 	179
620 	Materials and Supplies 	3,723 	(76) 	3,647
631 	Contractual Services - Professional 	3,450 	1,876 	5,326
632 	Contractual Services - Accounting 	0 	3,900 	3,900
635 	Contractual Services - Testing 	0 	3,529 	3,529
636 	Contractual Services - Other 	0 	1,440 	1,440
650 	Transportation Expense 	0 	750 	750
665 	Rate Case Expense 	0 	341 	341
670 	Bad Debt Expense 	0 	216 	216
675 	Miscellaneous Expenses 	0 	583 	583
Total O&M Expense 	$7,658 	$17,300 	$24,958
Working Capital is 1/8 of O&M Less RCE 	$3,077

ORDER NO. PSC-2023-0091-PAA-WU
DOCKET NO. 20210098-WU 	Schedule 4
PAGE 27
A UTILITY INC. 	DOCKET NO. 20210098-WU
MONTHLY WATER RATES 	SCHEDULE NO. 4
COMM 	FOUR-YEAR
EXISTING 	APPROVED 	RATE
RATES 	RATES 	REDUCTION
Residential
Flat Rate 	$15.26 	$21.33 	$0.25