Florida’s Public Service Commission (PSC) has approved a revenue requirement of $15,871,146 for Aqua Utilities Florida, Inc. (AUF), which had requested $17,186,014, reflecting a $1.3 million decrease. The Commission also reduced the company’s return on equity by 50 basis points from a proposed 9.76 to 9.26 percent, reflecting its determination that AUF’s quality of service was “marginal.”
While noting AUF’s improved service quality since the last rate case, Commissioners said more work was needed and directed AUF to file quarterly compliance reports with the PSC on improvements to aesthetic water quality, customer notifications for boiled water requirements, compliance with environmental requirements, and certain call center statistics.
“Although AUF continues to improve its systems, we listened to customers and determined the utility’s service to be marginal, while also lowering its allowed revenue,” said PSC Chairman Ronald A. Brisé. “We will continue to monitor AUF’s service and encourage further system upgrades.”
The Commission approved two rate bands for AUF’s water and wastewater customers. AUF’s monthly water rates for residential customers using 7,000 gallons are: $44.37 for Rate Band 1 and $68.30 for Rate Band 2. Wastewater rates for residential customers using 6,000 gallons are: $69.97 for Rate Band 1 and $87.53 for Rate Band 2. There is a separate rate band for general service-only wastewater customers.
AUF filed a proposed agency action (PAA) rate increase application with the PSC in September 2010, and the Commission acted on the petition in May 2011 granting a revenue requirement of $16,044,446. OPC and other intervenors protested the Commission’s final order, which, by Florida Statute, triggers a full rate case. Last August-October, Commissioners attended 10 customer service hearings in AUF’s service territory and heard from hundreds of customers about the Utility’s proposed rate increase and its quality of service. Commissioners included a hearing in Chuluota, though the system is not included in this petition, to hear from customers about AUF’s service improvements resulting from its Commission-directed monitoring plan.
This case included approximately 17,154 water and 6,595 wastewater customers served by AUF’s 58 water and 27 wastewater systems in 17 Florida counties.
Customers who have service quality or billing concerns can call the PSC’s Consumer Assistance toll free number at 800-342-3552. For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.
|Water and Wastewater Rate Bands|
|Aqua Utilities Florida, Inc. - Docket No. 100330-WS|
|Test Year Ending April 30, 2010|
|Listing of Systems Within Recommended Rate Bands|
|Rate Band 1||=||Prior Rate Band 1||+||Prior Stand Alone Systems|
|Silver Lake Estates/Western Shores|
|Rate Band 2||=||Prior Rate Band 2||+||Prior Rate Band 3|
|(Capped Band)||Carlton Village||48 Estates|
|Fern Terrace||Gibsonia Estates|
|Grand Terrace||Interlachen Lake/Park Manor|
|Lake Gibson Estates||Lake Osborne Estates|
|Piney Woods||Orange Hill/Sugar Creek|
|Sunny Hills||Quail Ridge|
|+||Prior Rate Band 4||+||Prior Stand Alone Systems|
|Arredondo Estates/Farms||Breeze Hill|
|Beecher's Point||Peace River|
|East Lake Harris/Friendly Center|
|Hermits Cove/St. Johns Highlands|
|Imerial Mobile Estates|
|Lake Josephine/Sebring Lakes|
|Silver Lake Oaks|
|Source: Staff Recommendation, Dkt. No. 100330-WS (post-hearing), Attachment 1, pp. 238-239.|
|Rate Band 1||=||Prior Rate Band 1|
|Rate Band 2||=||Prior Rate Band 2||+||Prior Rate Band 3||+||Prior Stand Alone Systems|
|(Capped Band)||Arredondo Farms||Beecher's Point||Breeze Hill|
|Holiday Haven||Jungle Den||Fairways|
|Jasmine Lakes||Lake Gibson Estates||Peace River|
|Lake Suzy||Rosalie Oaks|
|Silver Lake Oaks|
|Rate Band 3||=||Prior Rate Band 4|
|General Service-||Village Water|
|Only Wastewater||FL Central Commerce Park|
|Source: Staff Recommendation, Dkt. No. 100330-WS (post-hearing), Attachment 3, p. 242.|