Florida Public Service Commission native order document 02284-2024

FILED 4/23/2024
DOCUMENT NO. 02284-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Application for certificates to provide 	DOCKET NO. 20230114-WS
water and wastewater service in Volusia 	ORDER NO. PSC-2024-0127-PAA-WS
_C_ou_n_,t,:..:;,_b-"---A~_le....,,._at_e_U_t_il_i""",_L_L_C_.___~ ISSUED: April 23, 2024
The following Commissioners participated in the disposition of this matter:
MIKE LA ROSA , Chairman
ART GRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA PASSIDOMO
NOTICE OF PROPOSED AGENCY ACTION
ORDER ESTABLISHING RA TES AND CHARGES
AND
APPROVING ORIGINAL CERTIFICATE NOS. 682-W AND 582-S FOR APPLEGATE
UTILITY, 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
Applegate Utility, LLC (Applegate or Utility) is located in Volusia County, Florida. The
Utility 	provides 	water 	and 	wastewater 	service 	to 	approximately 	88 	mobile 	home 	park
connections within the Applegate Mobile Home Community, as well as 56 offsite water only
connections. The 56 offsite water only customers receive wastewater service from individually
owned septic tanks. Applegate acquired the system a little over a year ago, and subsequently
became aware 	that the 	system 	was 	under the jurisdiction of the 	Florida 	Public 	Service
Commission (Commission) and should be certificated.
On October 10, 2023, Applegate filed an application for an original certificate for an
existing utility currently charging for service pursuant to Rule 25-30.034, F.A.C. Our staff found
this application to be deficient and issued a deficiency letter on November 13, 2023. Applegate
provided a response to the deficiency letter; however, two deficiencies remained uncured,
resulting in a second deficiency letter on December 14, 2023. Applegate responded to the second

ORDER NO. PSC-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
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deficiency letter, and the application was deemed complete on January 3, 2024, establishing the
official filing date.
This Order addresses the application for original water and wastewater certificates and
the appropriate rates and charges for the Uti li ty. We have ju risdiction, pursuant to Sections
367.03 l and 367.045, Florida Statutes (F.S.)
Decision
On October 10, 2023, Applegate filed its application for or iginal water and wastewater
certificates in Volusia County. Upon review, our staff determined the original fi ling was
deficient and issued a deficiency letter on November 13 , 2023 , followed by a second deficiency
letter on December 14 , 2023. The Utility cured the deficiencies on January 3, 2024, which is
considered the official filing date fo r the application. The Utility's application is in compliance
with the governing statutes, Sections 367.031 and 367.045, F.S.
I. Original Water and Wastewater Certificate
a. Notice
On October 25, 2023, 1 and October 30, 2023,2 Applegate filed proof of compliance with
the noticing provisions set forth in Rule 25.30.030, F.A.C. No entity filed a protest during the
protest period and the time for filing objections has expired.
b. Land Ownership and Service Territory
Applegate prov id ed 	adequate service territory 	maps, 	system maps, and 	a 	territory
description, as required by Rule 25.30.034(1)(k), F.A.C. The legal description of the service
territory is appended to this order as Attachment A. The Utility's application included an
executed but umecorded 99-year lease for the land where the water and wastewater treatment
faci lities are located, pursuant to Rule 25-30.034(l)(m), F.A.C. In response to our staff's first
data request, Applegate explained that it would record the executed lease in the Volusia County
Public Records upon issuance of o ur Order approving the orig in al certificate. Applegate shall
subn ut the recorded deeds for continued access to the land upon w hi ch its facilities are located to
this Commission within 60 days of the Order granting the certificates.
c. Financi al and Technical Abi lity
Rule 25.30.034(1)(i), F.A.C., requires a statement showing the financial abi lity of the
applicant to provide service, a detailed financial statement, and a list of all entities upon which
the applicant is relying to provide funding along with those entities' financial 	statements.
Applegate is a newly formed entity and bas no financial statements at this time. Applegate is
relying fully upon funds provided by Consolidated Parakeet Holding Company (Parakeet). The
application contains Parakeet' s most recent balance sheet. Additionally, in response to our stafr s
first deficiency letter, Applegate provided a profit and loss statement fo r Parakeet. Further, the
Utility provided an affidavit from Parakeet assuring it will provide or assist Applegate in
securing any necessary funding. We beljeve that Parakeet's financial statements and affidavit
1Document No. 05803-2023, dated October 25, 2023.
2Document No. 05876-2023, dated October 30, 2023.

ORDER NO. PSC-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
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adequately demonstrate its ability to provide resources and support the Utility's water and
wastewater operations. Therefore, we find that Applegate has demonstrated that it will have
access to adequate financial resources to operate the Utility.
Rule 25-30.034( I)U), F.A.C., requires the applicant to demonstrate the technical abilities
to provide service. The application contains a statement describing the technical ability of the
Utility to provide service to the proposed service area. The ovmer of Applegate stated it has no
prior utility operation expe ri ence in Florida; however, the owner and its affiliates have operated
water and wastewater systems throughout the United States. Additionally, the owner committed
to 	employing 	the 	appropriate 	operational, 	technical, 	and 	managerial 	personnel, 	who 	are
knowledgeable and experienced in utility operation, as well as contracting experienced personnel
and consultants to ensure the continuous operation and management of the utility system in an
efficient and eITective manner. Based on the above, we find Applegate has demonstrated the
financial and technical ability to provide service to the existing service ten- itory.
d. Conclusion
Based on the above, we find that it is in the public interest to grant Applegate Certificate
Nos. 682-W and 582-S to serve the territory described in Attachment A, effective the date of our
vote. This order shall serve as Applegate's water and wastewater certificates and it shall be
retained by the Utility. Applegate shall submit the recorded deeds for continued access to the
land upon which its facilities are located to the Commission within 60 days of the issuance of the
Final Order in this docket.
II . Water and Wastewater Rates and Charges
a. Rates and Rate Structure
The Utility provides service to 144 residential customers, which includes water and
wastewater service to approximately 88 mobile home park customers and 56 offsite water only
customers. The offsite water only customers have septic tanks for wastewater service. The water
rates consist of a monthly base facility charge for a 5/8 inch x 3/4 inch meter size of $15.00 and a
ga ll onage charge per 1,000 gallons of $6 .25 for residential. For wastewater, its tariff consists of a
monthly residential flat rate of $15.98.
b. Premises Visit and Violation Reconnection Charge
For miscellaneous service charges, the Utility charges $15.00 for initial reconnection, and
according to the Utility, no other miscellaneous service charges have been assessed in the past.
Rule 25-30.460, F.A.C., does not allow for initial connection and normal reconnection charges.3
The Utility's initial connection is obsolete and inconsistent with the rule. Therefore, we find that
the initial connection charge be removed. We hereby approve a premises visit and violation
reconnection charge of $15, and the definition for the premises visit charge shall be updated to
comply with Rule 25-30.460, F.A.C. A violation recom1ection accounts for the discontinuance of
service and subsequent reconnection of service. Therefore, the water violation reconnection
3Order No. PSC-2021-0201-FOF-WS, issued on June 4, 2021, in Docket No . 20200240-WS, In r e: Proposed
am endment of Rule 25-30.460, F. A.C., Applicatio n/or Miscellaneous Service Charges.

ORDER NO. PSC-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
PAGE4
charge shall account for both services at a charge of $30.00 ($15.00 x 2). For wastewater, the
violation reconnection charge shall be at actuaJ cost, pursuant to Rule 25-30.460(2)(b), F.A.C.
c. Service Availability Charges
The Utility's proposed tariff indicates a meter installation charge of $65 for a 5/8 inch x
3/4 inch meter size and actual cost for all other meter sizes. The Utility also has a service line
extension and tap-in at actual cost. In its application , the Utility's service availability policy
states that the water distribution service is currently in place to serve all lots within the service
area. New connections shall pay the approved meter installation charge at the time service is
requested. Furthermore, it shall be the customer's responsibility to connect its service lateral to
the water meter. For wastewater, there are no service availability charges. We find the service
availability policy is appropriate and is hereby approved.
d. Conclusion
Based on the above, we find that the rates and charges shown on Schedule No. 1 are
approved for Applegate. The Utility is authorized to bill all customers on a monthly basis. The
Utility is required to notice all customers of the approved rates and charges. The notice shall be
approved by our staff prior to publication and the Utility shall provide proof of the date notice
was given within l O days of the date of the notice. The tariff shall be effective for service
rendered or connections made on or after the stamped approval date on the tariff sheets, pursuant
to Rule 25-30.475, F.A.C.
III. Initial Customer Deposits
Rule 25-30.311 , F.A.C., provides the criteria for collecting, administering, and refunding
customer deposits. Customer deposits are designed to minimize the exposure of bad debt expense
for the Utility and, ultimately, the general body of ratepayers. An initial customer deposit ensures
that the cost of providing service is recovered from the cost causer. Historically, we have set
initial customer deposits equaJ to two times the average estimated bill. The Utility's average
monthly residential usage is 4,139 gallons per month for water and wastewater. Therefore, the
average residential monthly bill is approximately $41 for water and $42 for wastewater service
based on our approved rates.
We find the appropriate initial customer deposits for the residential 5/8 inch x 3/4 inch
meter size are $82 for waler and $84 for wastewater. The initial customer deposits for aJl other
residential meter sizes and all general service meter sizes shaJl be two times the average
estimated bill. The approved initial customer deposits shall be effective for services rendered or
connections made on or after the stamped approval date on the tariff sheets, pursuant to Rule 25-
30.475, F.A.C. The Utility shaJl be required to col.lect the approved deposits until authorized to
change them by this Commission in a subsequent proceeding.
Based on the foregoing, it is

ORDER NO. PSC-2024-0127-PAA-WS
DOCK.ET NO.20230114-WS
PAGES
ORDERED by the Florida Public Service Commission that Applegate Utility, LLC is
hereby 	granted 	Certificate Nos. 	682-W 	and 	582-S 	to 	service 	the 	territory 	described 	in
Attachment A, which is appended to this order, effective April 2, 2024. This Order shall serve as
Applegate's water and wastewater certificates and it shall be retained by the Utility. It is further
ORDERED that the water and wastewater rates shown on Schedule No. I are approved.
The approved rates shall be effective for services rendered or connections made on or after the
stamped approval date on the tariff sheets pursuant to Rule 25-30.475, F.A.C. The Utility is
required to charge the approved rates until authorized to change them by this Commission in a
subsequent proceeding. It is further
ORDERED that the appropriate initial customer deposits are $82 for water and $84 for
wastewater service for the residential 5/ 8" x 3/ 4" meter size. The initial customer deposit for all
other residential meter sizes and all general service meter sizes shall be two times the average
estimated bill. The approved customer deposits shall be effective for service rendered on or after
the stamped approval date on the tariff pursuant to Rule 25-30.475, F.A.C. The Utility shall be
required to colJect the approved customer deposits until authorized to change them by this
Commission in a subsequent proceeding. It is further
ORDERED that the Utility's requested miscellaneous service charges are approved as
discussed in this Order. The Utility shall file revised tariff sheets and a proposed customer notice
to reflect the 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( I),
F.A.C. Applegate 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 the appropriate service availability charges are a meter installation
charge of $65 for a 5/8 inch x 3/4 inch meter size and actual cost for all other meter sizes. The
Utility also has a service line extension and tap- in at actual cost. New connections shall pay the
approved meter installation charge at the time service is requested. Furthermore, it shall be the
customer's responsibility to connect its service lateral to the water meter. For wastewater, there
are no service availability charges. We also find the service availability policy is appropriate and
is hereby approved. The approved charges shall be effective for connections made on or after the
stamped approval date on the tariff pursuant to Rule 25-30.475, F.A.C. The Utility shall be
requLred to charge the approved charges until authorized to change them by this Commission in a
subsequent proceeding. 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 28-106.20 l , 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

ORDER NO. PSC-2024-0127-PAA-WS
DOCKET NO.20230114-WS
PAGE6
ORDERED that this docket shall remain open for our staffs verification that the revised
tariff sheets and customer notice have been filed by the Utility and approved by staff. Once these
actions are complete, this docket sha ll be closed administratively.
TPS
By ORDER of the Florida Public Service Commission this 23rd day of April, 2024.
Commission
Florida Public Servi e 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.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 	120.569( 1), Fl or id a
Statutes, to notify parties of any administrative hearing or judicial review of Commission orders
that is available under Sections 120.57 or 120.68, Florida Statutes, as well as the procedures and
time limits that apply. 	This notice should not be construed to mean all requests for an
administrative hearing or judicial review will be granted or result in the relief sought.
As identified in the body of this order, the action discussed herein, except for granting
Certificate Nos. 682-W and 582-S, is preliminary in nature. 	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, at 2540 Shumard Oak Boulevard,
Tallahassee, Florida 32399-0850, by the close of business on May 14, 2024. 	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 sa ti sfies the foregoing conditions and is renewed within the
specified protest period.

ORDER NO. PSC-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
PAGE7
Any party adversely affected by the Commission's final action in this matter may request:
(I) 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 fom1 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-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
PAGES
APPLEGATE UTILITY, LLC
Water and Wa stewater Service Area
Attachment A
Pagel of 3
ALL OF LOTS A AND 8 , AND THE NORTH 1/2 OF LOT C, NORTHWOOD SUBDIVISION, ACCORDING TO
THE MAP OR PLAT THEREOF AS RECORDED IN MAP BOOK 6, PAGE 156, OF THE PUBLIC RECORDS
OF VOLUSIA COUNTY, FLORIDA LOCATED IN SECTION 28, TOWNSHIP 16 SOUTH RANGE 30 EAST,
AND THAT PART OF GOVERNMENT LOT 4, SECTION 29, TOWNSHIP 16 SOUTH , RANGE 30 EAST,
VOLUSIA COUNTY, FLORIDA, ALL BEING DESCRIBED AS FOLLOWS:
BEGIN AT A POINT ON THE SOUTHEASTERLY LINE OF THE DOMINGO REYES GRANT, SECTION 38,
TOWNSHIP 16 SOUTH, RANGE 30 EAST, BEING THE NORTHWEST CORNER OF SECTION 28,
TOWNSHIP 16 SOUTH , RANGE 30 EAST, VOLUSIA COUNTY, FLORIDA; THENCE N49° 10'51 "E ALONG
THE NORTHWESTERLY LINE OF SAID SECTION 28 AND THE SOUTHWESTERLY LINE OF SAID
DOMINGO REYES GRANT, A DISTANCE OF 1,543.69 FEET TO A POINT ON THE WEST RIGHT-OF-WAY
LINE OF STATE ROAD NO . 11 , HAVING A 200.00 FOOT RIGHT-OF-WAY; THENCE S00°43'19"E ALONG
THE WEST RIGHT-OF-WAY OF SAID STATE ROAD NO . 11 , A DISTANCE OF 1, 312 .31 FEET TO A POINT
ON THE SOUTH LINE OF THE NORTH 1/2 OF LOT C, NORTHWOOD SUBDIVISION, ACCORDING TO THE
MAP OR PLAT THEREOF, AS RECORDED IN MAP BOOK 6, PAGE 156, OF THE PUBLIC RECORDS OF
VOLUSIA COUNTY, FLORIDA; THENCE S89° 35'41 'W ALONG THE SOUTH LINE OF THE NORTH 1/2 OF
SAID LOT C, A DISTANCE OF 1,180.87 FEET TO A POINT ON THE EAST LINE OF GOVERNMENT LOT 4,
SECTION 29, TOWNSHIP 16 SOUTH, RANGE 30 EAST, VOLUSIA COUNTY, FLORIDA; THENCE
S00°43'19"E ALONG THE EAST LINE OF SAID GOVERNMENT LOT 4, A DISTANCE OF 244.42 FEET TO A
POINT ON THE SOUTHERLY BOUNDARY LINE OF PARCEL 3, AS DESCRIBED IN OFFICIAL RECORDS
BOOK 8125, PAGE 4012, OF THE PUBLIC RECORDS OF VOLUSIA COUNTY, FLORIDA; THENCE
DEPARTING SAID EAST LINE, RUN S50°22'13"W ALONG SAID SOUTHERLY BOUNDARY LINE, A
DISTANCE OF 412.73 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL 3; THENCE N41 °38'55"W
ALONG THE WESTERLY BOUNDARY LINE OF SAID LANDS, A DISTANCE OF 416.74 FEET TO A POINT
ON 	AFORESAID 	SOUTHEASTERLY 	LINE 	OF 	THE 	DOMINGO 	REYES 	GRANT 	AND 	THE
NORTHWESTERLY LINE OF AFORESAID SECTION 29, TOWNSHIP 16 SOUTH , RANGE 30 EAST;
THENCE 	N49°10'51"E, 	ALONG 	SAID 	NORTHWESTERLY 	LINE 	OF 	SECTION 	29 	AND 	THE
SOUTHEASTERLY LINE OF THE DOMINGO REYES GRANT, A DISTANCE OF 776.75 FEET TO THE
POINT OF BEGINNING.
SAID LANDS CONTAINING 27.77 ACRES, MORE OR LESS

ORDER NO. PSC-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
PAGE9
FLORIDA PUBLIC SERVICE COMMISSION
Authorizes
Applegate Utility, LLC
pursuant to
Certificate Number 682-W
Attachment A
Page 2 of 3
to provide water service in Volusia County in accordance with the provisions of Chapter 367,
Florida Statutes, and the Rule, regulations, and Orders of this Commission in the territory
described by the Orders of this Commission. This authorization shal l remain in force and effect
until superseded, suspended, cancelled or revoked by Order of this Commission.
Order Numbe r 	Date Issued
PSC-2024-0127-PAA 	April 23, 2024
Docket Number
20230114-WS
Filing Type
Original Certificate

ORDE R NO. PSC-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
PAGE 10
FLORIDA PUBLIC SERVICE COMMISSION
Authorizes
Applegate Utility, LLC
pursuant to
Certificate Number 582-S
Attachment A
Page 3 of 3
to provide wastewater service in Volusia County in accordance with the provisions of Chapter
367, Florida Statutes, and the Rule, regulations, and Orders of this Commission in the ten-itory
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
PSC-2024-0127-P AA 	April 23, 2024
Docket Number
20230114-WS
Filing Type
Original Certificate

ORDER NO. PSC-2024-0127-PAA-WS
DOCKET NO. 20230114-WS
PAGE 11
Residential
5/8" x 3/ 4" meter size
Charge per 1,000 gallons
Residential
All meter sizes
Applegate Utility, LLC
Monthly Water Rates
Monthly Wastewater Rates
Miscellaneous Service Charges
Violation Reconnection Charge - Water
Violation Reconnection Charge - Wastewater
Premises Visit Charge
Meter Installation Charge
5/ 8" X 3/ 4"
I"
1 1/2"
2"
Service Availability Charges
Water Service
Service Line Extension and Tap-In
Schedule No. I
Page 1 of 1
$15.00
$6.25
$) 5.98
$30.00
Actual Cost
$15.00
$65.00
Actual Cost
Actual Cost
Actual Cost
Actual Cost