Discussion
of Issues
Issue 1:
Should Hash Utilities, LLC’s application for a grandfather
water certificate in Citrus County for its Forest Hills water system be
acknowledged?
Recommendation:
Yes. Forest Hills’ application should
be acknowledged and the Utility should be issued Certificate No. 687-W,
effective May 28, 2024, to serve the territory described in Attachment A. The
resultant order should serve as Forest Hills’ certificate and should be
retained by the Utility. (M. Watts, Bardin)
Staff Analysis:
The Utility’s application for a
certificate under grandfather rights to provide water service in Citrus County
is in compliance with Section 367.171(2)(b), F.S., and Rule 25-30.035, F.A.C.
The application contains a bulk water purchase agreement with the Citrus County
Municipal Service Benefit Unit. Because the Utility does not have a water
treatment plant but purchases the water it provides to customers, it does not
require proof of access to the land under the treatment plan. Forest Hills also
provided an adequate service territory description, and system maps. The
territory description is provided in Attachment A.
As stated in the case background,
Forest Hills serves approximately 81 residential customers and one general
service customer. The Utility does not currently have any outstanding
citations, violations, or consent orders on file with the Florida Department of
Environmental Protection.
The Utility is aware of its obligation
to submit its 2024 Annual Report pursuant to Rule 25-30.110, F.A.C., and is
also aware of its obligation to pay regulatory assessment fees pursuant to Rule
25-30.120, F.A.C. In addition, the Utility is aware that it must maintain its
books and records according to the National Association of Regulatory Utility
Commissioners’ Uniform System of Accounts.
Based on the above, staff recommends
that Forest Hills be granted Certificate No. 687-W to serve the territory
described in Attachment A. The resultant order should serve as the Utility’s
certificate and should be retained by the Utility.
Issue 2:
What rates, charges, and deposits should be approved
for Forest Hills Utilities, LLC?
Recommendation:
Of the Utility’s rates, charges, and deposits that
were in effect when Citrus County transferred jurisdiction to the Commission,
only the rates, charges, and initial customer deposit shown on Schedule No. 1
are appropriate and should be approved. The rates, charges, and initial
customer deposit shown in Schedule No. 1 should be effective for services
rendered or connections made on or after the stamped approval date on the
tariff sheets. The Utility should be required to charge the approved rates,
charges and initial customer deposit shown in Schedule No. 1 until authorized
to change them by the Commission in a subsequent proceeding. (Chambliss)
Staff Analysis:
Citrus County Water and
Wastewater Authority (CCWWA) approved the Utility’s current monthly rates by
Final Order 23-03 on August 14, 2023. The bi-monthly water rates consist of a
base facility charge (BFC) and gallonage charge per 1,000 gallons. However, it
appears that the Utility has not been billing the appropriate rates, which will
be addressed in Issue 4. Staff recommends that the rates that were last
approved in Final Order 23-03 by Citrus County should be billed to customers and
approved by the Commission.
The Utility’s water charges
consist of miscellaneous service charges and service availability charges,
which include a service availability policy. The miscellaneous service charges were
put in place under the prior owner. The remaining miscellaneous service charges
are not consistent with the Florida Statutes or Commission Rules and are
discussed in Issue 3. The Utility’s service availability charges were approved
in Final Order 24-01 on January 29, 2024.
Staff recommends that, of the Utility’s rates, charges,
and deposits that were in effect when Citrus County transferred jurisdiction to
the Commission, only the rates, charges, and initial customer deposit shown on
Schedule No. 1 are appropriate and should be approved. The rates, charges, and
initial customer deposit shown in Schedule No. 1 should be effective for
services rendered or connections made on or after the stamped approval date on
the tariff sheets. The Utility should be required to charge the approved rates,
charges and initial customer deposit shown in Schedule No. 1 until authorized
to change them by the Commission in a subsequent proceeding.
Issue 3:
What are the appropriate miscellaneous service
charges for Forest Hills Utilities, LLC?
Recommendation:
The appropriate miscellaneous service charges shown
on Table 3-2 should be approved. The Utility should be required to file a
proposed customer notice to reflect the Commission-approved charges. The
approved charges should be effective for service rendered or connections made on
or after the stamped approval date on the tariff sheet pursuant to Rule
25-30.475, F.A.C. In addition, the tariff sheets will be approved upon staff’s
verification that the tariffs are consistent with the Commission’s decision and
that the proposed customer notice is adequate. (Chambliss)
Staff Analysis:
The Utility did not request
to revise its existing miscellaneous service charges. Section
367.091, F.S., authorizes the Commission to establish, increase, or change a
rate or charge other than monthly rates or service availability charges. Staff
recommends that some of the Utility’s existing charges that are set forth in
Table 3-1 be revised to conform with Rule 25-30.460, F.A.C. The Utility’s
current miscellaneous service charges for water service consist of various
charges and are shown on Table 3-1.
Table 3-1
Forest
Hills Utilities, LLC Existing Miscellaneous Service Charges
|
|
Existing Charges
|
|
Initial Connection Charge
|
$45.00
|
|
Normal Reconnection Charge
|
$45.00
|
|
Violation Reconnection Charge
|
$45.00
|
|
Premises
Visit Fee (in lieu of disconnection)
|
$45.00
|
|
Premises Visit Charge
|
$30.00
|
|
Late Payment Charge
|
$5.00
|
|
NSF Charge
|
Pursuant to Section 68.065, F.S.
|
|
Tampering Charge
|
$150.00
|
Source:
Utility’s current tariff and response to staff’s deficiencies
Initial Connection, Normal Reconnection
Charge, Violation Reconnection Fee, and Premises Visit Fee
As shown on Table 3-1, the
Utility currently has an initial connection charge, a normal reconnection
charge, a violation reconnection charge, and a premises visit charge of $45.
The Utility also has a premises visit charge of $30. However, pursuant to Rule
25-30.460, F.A.C., initial and reconnection charges are obsolete and are
subsumed in the definition of the premises visit charge. Therefore, staff
recommends that the initial and reconnection charges be removed. According to
the Utility owner, the premises visit charge of $30 is assessed when customers
request a meter re-read. A meter re-read is usually assessed when an initial
reading is not an error of the Utility. Therefore, staff recommends that the
premises visit charge of $30 be removed as it is covered under the premises
visit charge of $45. Staff recommends that the definition for
the premises visit charge be updated to comply with Rule 25-30.460, F.A.C.
Tampering or Prohibited
Connection or Use Charge
The Utility has a tampering fee
of $150 for water service. Rule 25-30.320(2)(j), F.A.C., provides that a
utility may refuse or discontinue service without notice in the event of
unauthorized or fraudulent use of service. Whenever service is discontinued for
fraudulent use of such service, the Utility, before restoring service, may
require the customer to make at his own expense all changes in piping or
equipment necessary to eliminate illegal use and to pay an amount reasonably
estimated as the deficiency in revenue resulting from the customer’s fraudulent
use before restoring service. Based on the above, staff recommends that the
Utility’s tampering charge of $150 be approved at actual cost.
Table 3-2
Staff Recommended
Miscellaneous Service Charges
|
|
All Hours
|
|
Premises Visit
|
$45.00
|
|
Violation Reconnection
|
$45.00
|
|
Tampering or Prohibited
Connection or Use Charge
|
Actual Costs
|
|
NSF Charge (Water and
Wastewater)
|
Pursuant to Section
68.065, F.S.
|
|
Late Payment Charge
|
$5.00
|
Conclusion
Based on the above, the appropriate water miscellaneous
service charges shown on Table 3-2 should be approved. The Utility should be
required to file a proposed customer notice to reflect the Commission-approved
charges. The approved charges should be effective for service rendered or
connections made on or after the stamped approval date on the tariff sheet
pursuant to Rule 25-30.475(2), F.A.C. In addition, the tariff sheets will be
approved upon staff’s verification that the tariffs are consistent with the
Commission’s decision and that the proposed customer notice is adequate.
Issue 4:
Did Forest Hills bill the appropriate rates pursuant
to Citrus County Final Order 23-03, and, if not, what is the appropriate action?
Recommendation:
The Utility did not bill the appropriate rates pursuant
to Citrus County Final Order 23-03. Staff recommends that a docket be opened to
investigate improper billing practices and determine the appropriate action. (Chambliss)
Staff Analysis:
As mentioned in Issue 2, the Utility is currently charging
unauthorized rates. As reflected in the current tariff, Forest Hills bills a
bi-monthly BFC of $27.16 and a gallonage charge of $5.10 for its residential,
multi-residential, and general service customers. Staff contacted Citrus
County, which indicated that the Utility’s last price index increase was
approved in Final Order 23-03 on August 14, 2023.
Subsequently, Citrus County Water and Wastewater Authority was scheduled to
meet, on May 20, 2024, to make its decision on Final Order 24-04 for the 2024
price index increase, which was expected to be a 3.24 percent increase. However, the meeting was canceled due to the
change of Citrus County jurisdiction in progress with the Commission. The
Utility implemented the 3.24 percent increase to its rates in March of 2024
before Citrus County Water and Wastewater Authority could decide on the rates.
According to the Utility’s tariff, the customers are being overcharged. Staff recommends
that this matter should be investigated further.
Based on the above, the Utility did not bill the appropriate rates pursuant
to Citrus County Final Order 23-03. Staff recommends that a docket be opened to
investigate improper billing practices and determine the appropriate action.
Issue 5:
Should this docket be closed?
Recommendation:
If
no person whose substantial interests are affected by the proposed agency
action portion of this recommendation files a protest within 21 days of the
issuance of the order, a consummating order should be issued. The docket should
remain open for staff’s verification that the revised tariff sheets have been
filed by the Utility and approved by staff. Once this action is complete, this
docket should be closed administratively. (Farooqi)
Staff Analysis:
If
no person whose substantial interests are affected by the proposed agency
action portion of this recommendation files a protest within 21 days of the
issuance of the order, a consummating order should be issued. The docket should
remain open for staff’s verification that the revised tariff sheets have been
filed by the Utility and approved by staff. Once this action is complete, this
docket should be closed administratively.
DESCRIPTION OF TERRITORY SERVED
Hash Utilities, LLC
Forest Hills Subdivision, Citrus County.
That part of the
Southwest 1/4 of the Southeast 1/4 of Section 30, Township 18 South, Range 18
East, Citrus County, Florida, lying North of State Road No. 44, more
particularly described as follows:
Begin at the
Northwest corner of the Southwest ¼ of the Southeast ¼ of Section 30, Township
18 South, Range 18 East, which is the Point of Beginning. Thence go North
88°46'34" East along the North line of said Southwest ¼ of the Southeast ¼
a distance of 1,272.6 feet, which is the South side of Safari Rd; thence South
45°02'06" East to the East line of said Southwest ¼ of the Southeast ¼ a
distance of 164.96 feet; thence South 00°03'06" East along the East line
of said Southwest ¼ of the Southeast ¼ a distance of 1,220 feet to the Southeast
corner of the Southwest ¼ of the Southeast ¼ of Section 30; thence South
88°46'34" West a distance of 176.1 feet; thence North 00°03'36" West
a distance of 309.5 feet; thence South 88°46'34" West a distance of 168.97
feet; thence North 00°03'36" West a distance of 160.36 feet; thence South
88°46'34" West a distance of 168.97 feet; thence North 00°03'36" West
a distance of 80.18 feet; thence South 88°46'34" West a distance of 168.97
feet; thence North 00°03'36" West a distance of 80.18 feet; thence South
88°46'34" West a distance of 168.98 feet; thence North 00°03'36" West
a distance of 80.18 feet; thence South 88°46'34" West a distance of 336.41
feet; thence North 00°11 '48" West a distance of 46.46 feet; thence South
88°46'34" West a distance of 195.1 feet; thence North 00°11'48" West
a distance of 595 feet to the Point of Beginning.
FLORIDA PUBLIC SERVICE COMMISSION
authorizes
Hash Utilities, LLC (Forest Hills)
pursuant to
Certificate
Number 687-W
to provide water
service in Citrus County in accordance with the provisions of Chapter 367,
Florida Statutes, and the Rules, Regulations, and Orders of this Commission in
the territory 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 Docket Number Filing Type
* * 20240117-WU Grandfather Certificate
*Order Number and date to be provided at time of issuance.
