Florida Public Service Commission native order document 00651-2023

Order No. PSC-2023-0064-PAA-WSFlapubserv

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FILED 1/30/2023
DOCUMENT NO. 00651-2023
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Application for limited alternative rate
increase in Hardee, Manatee, Marion, Polk,
and Pasco Counties, by Charlies Creek
Utilities, LLC, Crestridge Utilities, LLC, East
Marion Utilities, LLC, Heather Hills Utilities,
LLC, Holiday Gardens Utilities, LLC, Lake
Yale Utilities, LLC, McLeod Gardens Utilities,
LLC, Orange Land Utilities, LLC, Sunny
Shores Utilities, LLC, Sunrise Water, LLC and
West Lakeland Wastewater, LLC.
DOCKET NO. 20220185-WS
ORDER NO. PSC-2023-0064-PAA-WS
ISSUED: January 30, 2023
The following Commissioners participated in the disposition of this matter:
ANDREW GILES FAY, Chairman
ART GRAHAM
GARYF.CLARK
MIKE LAROSA
GABRIELLA P ASSIDOMO
NOTICE OF PROPOSED AGENCY ACTION
ORDER DENYING PEITION FOR TEMPORARY WAIVER OF
RULE 25-30.020(2)(t), F.A.C., BY FLORIDA UTILTY SERVICES 1, LLC
BY THE COMMISSION:
NOTICE is hereby given by the Florida Public Service Commission that the action
discussed herein is 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.).
Background
Florida Utility Services 	1, LLC (FUSI) is a service company that owns multiple
Commission-regulated water and wastewater utilities. On November 4, 2022, FUSI filed an
application for a limited alternative rate increase proceeding (LARI) pursuant to Rule 25-30.457,
F .A.C, for the following eleven utilitie s: Charles Creek Utilities, LLC; Crestridge Utilities, LLC;
East Marion Utilities, LLC; Heather Hills Utilities, LLC; Holiday Gardens Utilities, LLC; Lake
Yale Utilities, LLC; McLeod Gardens Utilities, LLC; Orange Land Utilities, LLC; Sunny Shores
Utilities, LLC; Sunrise Water, LLC; and, West Lakeland Wastewater. 	FUSI allocates common
costs to its Commission-regulated utilitie s.
ORDER NO. PSC-2023-0064-PAA-WS
DOCKET NO. 20220185-WS
PAGE 2
Rule 25-30.457(4), F.A.C., requires payment of a filing fee as required by Rule 25-
30.020(2)(f), 	F.A.C., or the application is deemed denied. Pursuant to Rule 25-30.020(1),
F.A.C., the utility must pay a separate filing fee for water services and wastewater services. 	In
this docket, there are eleven utilities with fourteen separate water and wastewater systems.
Therefore, our staff determined and subsequently notified FUS1 that the filing fees under Rule
25-30.020(2)(f), F.A.C., for these fourteen systems totaled $13,000. The following table reflects
the associated fee for each water and wastewater system at issue.
Table 1 – Filing Fees for Systems Included in the LARI
Utility 	W/WW
Design
Capacity
Equivalent
Residential
Connection
(ERC)
Filing
Fee
Charlie Creek Utilities, LLC 	W 	133,000 	380 	$1,000
Crestridge Utilities, LLC 	W 	432,000 	1234 	$1,000
East Marion Utilities, LLC W 	180,000 	514 	$1,000
WW 	50,000 	179 	$500
Heather Hills Utilities, LLC W 	N/A 	355 	$1,000
WW 	N/A 	355 	$1,000
Holiday Gardens Utilities,
LLC 	W 	342,000 	977 	$1,000
Lake Yale Utilities, LLC W 	468,000 	1337 	$1,000
WW 	55,000 	196 	$500
McLeod Gardens Utilities,
LLC 	W 	712,800 	2037 	$1,000
Orange Land Utilities, LLC 	W 	100,000 	286 	$1,000
Sunny Shores Utilities, LLC 	W 	N/A 	262 	$1,000
Sunrise Water, LLC 	W 	792,000 	2263 	$1,000
West Lakeland Wastewater,
LLC 	WW 	70,000 	250 	$1,000
Total: 	$13,000
On November 7, 2022, FUS1 filed a petition pursuant to Section 120.542, F.S., for
waiver of Rule 25-30.020(2)(f), F.A.C. (Petition), requesting that we waive the $13,000 in filing
fees required by the rule and enable FUS1 to instead pay a single filing fee of $1,000.
On December 6, 2022, our staff notified FUS1 that the application had met the initial
requirements imposed by Rule 25-30.457, F.A.C. 	However, our staff could not move forward
with the application until after the disposition of the rule waiver. In addition, our staff confirmed
that the filing fees under Rule 25-30.020(2)(f), F.A.C., for these fourteen systems totaled
$13,000, as shown in the table above.
ORDER NO. PSC-2023-0064-PAA-WS
DOCKET NO. 20220185-WS
PAGE 3
We have jurisdiction pursuant to Section 120.542 and Chapters 120 and 367, Florida
Statutes (F.S.).
Decision
Rule 25-30.020(2)(f), F.A.C.
Subsection 120.542(2), F.S., provides a procedure for agencies to provide relief to
persons when strict application of uniformly applicable rule requirements leads to unreasonable,
unfair, and unintended results in particular instances. In this case, FUS1 requests that we grant it
a waiver of Rule 25-30.020(2)(f), F.A.C., to remit a single $1,000 filing fee instead of the
$13,000 in filing fees which was calculated pursuant to the rule for each of the fourteen systems
operated by the eleven individual utilities. FUS1 argues the rule waiver is appropriate because by
filing a LARI for common costs only, we will only have to make one calculation and apply that
calculation eleven times.
An agency must grant variances or waivers from agency rules when the person subject to
the rule demonstrates both (1) that the purpose of the underlying statute will be or has been
achieved by other means, and (2) that an application of the rule would either cause the person
substantial hardship or violate 	principles of fairness. Subsection 120.542(2), F.S. “Substantial
hardship” as defined as a demonstrated economic, technological, legal, or other type of hardship.
The underlying statute at issue in this case is Section 367.145, F.S. Specifically,
Subsection 367.145(2), F.S., requires that each utility requesting rate relief must pay an
application fee to the Commission. The Legislature intended for us to create a filing fee to be
paid by each utility to compensate us for our work on LARIs, and we have done so with our
implementation of Rule 25-30.020, F.A.C., which sets forth how the filing fee is calculated based
on the capacity of each water or wastewater system to serve a specific number of ERCs.
Accordingly, we find that a modification or waiver of this rule requirement would be
inconsistent with the statute.
In its petition, FUS1 claims “By filing a LARI for common costs only, commission staff
will have to make one calculation and apply that calculation 11 times, as they would do
anyway." However, because these are not consolidated systems, an individual assessment of each
individual utility and system is needed, that is we must conduct a review of each of the fourteen
individual systems that are shown in Table 1 above. The purpose of the filing fee is to defray
some of the costs of processing these applications thereby allowing us to assist small water and
wastewater systems. As such, a filing fee for each system is consistent with the applicable
statutes and rules. Furthermore, Section 367.145(2), F.S., states that the filing fee is to be based
upon the capacity of the system, not on the amount of the work performed by the Commission. 1
For these reasons, we find that FUS1’s petition failed to demonstrate how a waiver of filing fees
will meet the purpose of the underlying statute.
1 This is consistent with our prior practice. See Docket No. 20200152-WS, where we accepted a fee of $4,500 for
processing a LARI for Alturas Water, LLC, Sunrise Water, LLC, Pinecrest Utilities, LLC, and East Marion Utilities,
LLC.
ORDER NO. PSC-2023-0064-PAA-WS
DOCKET NO. 20220185-WS
PAGE 4
Moreover, we find that FUS1’s Petition failed to demonstrate how the application of Rule
25-30.020(2)(f), F.A.C., would create a substantial hardship for the utilities and their customers.
While FUS1 argues the application fees would limit the utilities’ cash reserves and inhibit the
ability to deal with emergencies in a proper manner, we find the filing fees are highly predictable
and incurred as a regular cost of doing business. Therefore, FUS1 failed to adequately show it
meets the requirements for a rule waiver pursuant to Subsection 120.542, F.S.
Conclusion
Based on the above, we deny FUS1’s Petition for a waiver of Rule 25-30.020(2)(f),
F.A.C., to allow FUS1 to file a single filing fee for fourteen separate systems.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Florida Utility Services 1,
LLC’s petition for waiver of Rule 25-30.020(2)(f), F.A.C., is denied for the reasons set forth in
the body of this Order. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto. It
is further
ORDERED that this docket shall remain open pending our decision on the application for
a Limited Alternative Rate Increase.
ORDER NO. PSC-2023-0064-PAA-WS
DOCKET NO. 20220185-WS
PAGES
By ORDER of the Florida Public Service Commission this 30th day of January. 2023.
MJJ
Commi 	ion
Florida Publ c Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413 -6770
www.tloridapsc.com
Copies furnished: 	A copy of this document is
provided to the parties of record at the time of
issuance and, if app licable, interested persons.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Pub li c Service Commission is required by Subsection 120.569(1), Florida
Statutes, to notify parties of any administrative hearing that is ava il able under Section 120.57,
Florida Statutes, as we ll as the procedures and time limits that apply. 	This notice shou ld not be
construed to mean all requests for an administrative hearing will be granted or result in the relief
sought.
Mediation may be avai lab le on a case-by-case basis. If mediation is conducted, it does
not affect a substantially interested person's right to a hearing.
The action proposed herein is prel iminary in nature. Any person whose s ubstantial
interests are affected by the action proposed by this order may file a petition for a forma l
proceeding, in the form provided by Rule 28- I 06.20 I, Florida Adm ini strative Code. 	This
petition must be received by the Office of Commission C lerk , 2540 Shumard Oak Boulevard,
Tallahassee, Florida 32399-0850 , by the close of business on February 20, 2023.
In the absence of such a petition, thi s order sha ll become final and effective upon the
issuance of a Consummat ing Order.
Any objection or protest fi led in this/these docket(s) before the issuance date of this order
is considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest per iod.

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