Florida Public Service Commission native order document 01148-2024

FILED 3/13/2024
DOCUMENT NO. 01148-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Proposed Rule 25-30.0372, Alternative 	DOCKET NO. 20230123-WS
Procedure for Establishing Rate Base Value of 	ORDER NO . PSC-2024-0067-NOR-WS
_A	_ c ..._u_ir_e_d_U_t_il_it..:__S_.__st_em	_ . _______ 	__,JJ ISSUED: March 13, 2024
The following Commissioners participated in the disposition of this matter:
BY THE COMMISSION
MIKE LA ROSA, Chairman
ART GRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA PASSJDOMO
NOTICE OF PROPOSED RULE
NOTICE is hereby given that the Florida Public Service Commission, pursuant to Section
120.54, Florida Statutes, has proposed the adoption of Rule 25-30.03 72 , Florida Administrative
Code, relating to establishing an alternative rate base value for an acquired water and/or
wastewater utility.
The attached Notice of Proposed Rule appeared in the March 13, 2024, edition of the
Florida Administrative Register (Vol. 50 / 51 ).
Requests for hearing on the proposed rule, information regarding the statement of
estimated regulatory costs, or proposals for a lower cost regulatory alternative must be provided
in writing and received by the Office of Commission Clerk, Florida Public Serv ice Commission,
2540 Shumard Oak Blvd., Tallahassee, FL 32399-0862, no later than April 3, 2024.

ORDER NO. PSC-2024-0067-NOR-WS
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By ORDER of the Florida Public Service Commission this 13th day of March, 2024.
ss
Commission
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 applicable, interested persons.

ORDER NO. PSC-2024-0067-NOR-WS
DOCKET NO. 20230123-WS
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PUBLIC SERVICE COMMISSION
RULE NO.: 	RULE TITLE:
Notice of Proposed Rule
25-30.0372 	Alternative Procedure for Establishing Rate Base Value of Acquired Utility
System
PURPOSE AND EFFECT: Docket 20230123-WS
To implement newly enacted Section 367.0811, F.S., which was passed by the Florida
Legislature in the 2023 session. Section 367.0811, F.S. creates an alterative procedure to
establish the rate base value of an acquired water and/or wastewater utility system
SUMMARY: Rule 25-30.0372, F.A.C., is a new rule to implement Section 367.0811, F.S.,
which was adopted by the Florida legislature in 2023. The mle clarities ambiguous tem1s in the
statute and sets forth the procedures for handling the petition to establish the rate base value
before the Commission. The rule also contains general :filing instructions and notice
requirements to provide due process and assist in the efficient implementation of the statute. The
rule incorporates a new form (PSC 1035 03/24) to reflect information required by the statute
regarding the 5-year projected rate impact
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND
LEGISLATIVE RATIFICATION:
The Agency has determined that this will not have an adverse impact on small business or likely
increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one
year after the implementation of the rule. A SERC has been prepared by the Agency.
The SERC examined the factors required by Section 120.541 (2), FS, and concluded that the rule
will not likely increase regulatory costs, including any transactional costs or have an adverse
impact on business competitiveness, productivity, or innovation in excess of$ I million in the
aggregate within five years of implementation. The proposed rule would have no impact on
small business, would have no implementation cost to the Commission or other state and local
government entities, and would have no impact on small cities or counties. The agency has
determined that the proposed rule is not expected to require legislative ratification based on the
statement of estimated regulatory costs or if no SERC is required, the information expressly
relied upon and described herein: based upon the infonnation contained in the SERC
The Agency has determined that the proposed rule is not expected to require legislative
ratification based on the statement of estimated regulatory costs or if no SERC is required, the
information expressly relied upon and described herein:
Any person who wishes to provide information regarding a statement of estimated regulatory
costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within
21 days of this notice.
RULEMAKING AUTHORITY: 367.0811(11), F.S.
LAW IMPLEMENTED: 367.0811, F.S.
IF REQUESTED WITHIN 21 DAYS OF THE DA TE OF THIS NOTICE, A HEARING WILL
BE SCHEDULED AND ANNOUNCED IN THE FAR.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Susan
Sapoznikoff: Office of General Counsel, 2540 Shumard Oak Boulevard, Tallahassee, FL 32399-
0850, (850) 413-6630, Susan.Sapozikoff@psc.state.fl.us

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THE FULL TEXT OF THE PROPOSED RULE IS:
25-30.0372 Alternative Procedure for Establishing Rate Base Value of Acquired Utility
System.
(1) Definition. For the purposes of this rule. '' Licensed Appraiser." as referenced in Section
367.08 l 1(4)(a), F.S., means a person who meets all the fo ll owing cr iteria:
(a) Has ce1tification as an Accredited Senior Appraiser by the American Society of
Appraisers (ASA). designation as a Certified Valuation Analvst by the National Association of
Certified Valuators and Analysts (NACVA). designation as a Certified Business Appraiser by
the Institute of Business Appraisers (CBA). or designation as Accredited in Business Valuation
by the American Institute of Ce1ti fied Public Accountants (AICPA), and
(b) Is in good standing with the ASA. NACY A, IBA, or AICPA.
(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-generated random numbers.
(c) Th e licensed engineer who performs the engineering assessment required by Section
367.0811(4)(b), F.S., may not also serve as a li censed appraiser on the same acquisition
transaction.
(d) The li st of li censed appraisers required by Section 367.0811(4)(a). F .S .. can be found at
www.floridapsc.com/appraiserlist or obtained from the Office of the Commission Clerk, Florida
Public Se rvice 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 followi ng to appraiserlist (a1 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 apprai ser is employed or associated;
and
3. Proof of the information required by subsection (1) above.
(f) It is the responsibility of the licensed appraiser to ensure that correct and updated
infom1ation remains on file with the Commission. The licensed appraiser must submit updated
information to appraiserlist@psc.state.fl.us wi thin 30 days of any change of info1mation. If the
Commission determines that a person no longer meets the requirements to be a licensed appraiser
on the Commission's list, that person will be removed from the list. Upon request and upon
providing proof that the requirements li sted 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.f1.us.
(3) Petition. Section 367.08 11 (5), F.S .. sets forth the fili ng requirements a petition to
establish the rate base va lu e mu st 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

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P AGES
approving the transfer of the certificate(s) of authorization or the closing date of the sale.
Commission staff wi ll review the petition and within 30 days of receipt of the petition will notifv
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. If 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. Th e 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 by Section 367.0811(4)(b), F.S., identifies
deficiencies. the 3-year plan required by Section 367.081 l(S)(d), F.S., must include the
following. if existing, regarding the system being acquired:
1. A copy of the 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 a ll correspondence with the DEP, county health department. and water
management d istrict, including consent orders and warning letters, and the utility' s responses to
the same, for the past five years.
(c) Form P SC 1035 (03/24). entitled "Water and/or Wastewater Cumulative Present Value of
the Revenue Requirement for Alternate Rate Base Worksheet" (CPVRR), which is incorporated
by reference in this rule and may be obtained from [hyperlinkl, must be included in the petition
to show the 5-year projected rate impact required by Section 367.081 l(S)(e), F.S. The form can
also be found at www.tloridapsc.com, or obtained from the Office of the Commission Clerk,
Florida Public Service Comm ission. 2540 Shumard Oak Boulevard. Tallahassee, Florida 32399-
0850.
(d) The 5-year rate impact required by Section 367.08 1 l(S)(e), F.S .. must also include the
following for each year for residential and general service customers, and the CPVRR must
support the projections for the following:
1. Base fac ili ty charge,
2. Gallonage charge, and
3. Billing determinants.
(e) The information filed under Section 367.081 l(S)(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 Uniform System of Accounts.
which is incorporated by reference in Rule 25-30 .11 5. F.A.C.
(f) For purposes of determining whether the petition must include a rate stabilization plan
under Section 367.0811 (S)(h), F.S., "significant individual increase in rates" means a rate
increase during any twe lve consecutive months of the 5-year projected rate impact period that is
in excess of 15 percent over the current rates of the utilitv system bei ng 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 time 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

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notice by regular mail to the Office of Public Counsel and by regular mail or personal service to
each customer and owner of property located within the service area for both the acquiring utility
and the utility being acquired, to the 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;
(b) A statement that the utility 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 projected rate impact or the anticipated effect of the requested
rate base on rates for the next five years;
(f) A 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 367.081 l(l I), FS. law Implemented 367. 081 I. FS.. HisfOJY=New
NAME OF PERSON ORIGINATING PROPOSED RULE: Mark Cicchetti
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Florida Public
Service Commission
DA TE PROPOSED RULE APPROVED BY AGENCY HEAD: March 05, 2024
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: Volume 49,
Number 211 , Oct. 30, 2023