Case Background
Ni Florida, Inc.
(Ni Florida or Utility) is a Class A water and wastewater utility operating in
Pasco County and Lee County. Ni Florida currently provides wastewater service
to approximately 2,751 customers in Pasco County and water service to
approximately 735 customers in Lee County. On October 10, 2024, Ni Florida
filed an application with the Commission to amend Certificate No. 104-S to
extend wastewater service to Oak Stone Development in DeSoto County, and for
approval of a special developer agreement and service availability charges.
The proposed
service area is a new development of approximately 642 acres. This development will
include the addition of approximately 1,950 wastewater connections, which will
consist of residential single-family homes, townhouses, and condominiums. DeSoto
County is an area not under the jurisdiction of the Commission. However,
Section 367.171(7), Florida Statutes (F.S.), provides that the Commission has
exclusive jurisdiction over utilities whose service transverses county
boundaries.
In 1973, the
Utility was granted Certificate No. 104-S in Pasco County. The certificate has subsequently undergone
one transfer, been amended six times, and underwent two transfers of majority
organizational control prior to being acquired by Ni Florida in 2007. The certificate then underwent two more
transfers of majority organizational control before the Commission acknowledged
the name change of the Utility from Ni Florida, LLC to Ni Florida, Inc., in
2021.
As part of its
amendment application, the Utility requested Commission approval of a special
developer agreement and service availability charges. Pursuant to Rule
25-30.550(1), Florida Administrative Code (F.A.C.), developer agreements shall
be deemed to be approved under the utility’s existing availability policy,
unless the Commission gives notice of intent to disapprove within 30 days. Ni
Florida waived this requirement in a memo filed on March 25, 2025.
This
recommendation addresses the Utility’s request to extend its wastewater service
territory, the special developer agreement, and service availability charge for
the proposed service area. The Commission has jurisdiction pursuant to Section
367.045(2), and 367.171, Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve Ni Florida's
application for amendment of Certificate No. 104-S to extend its wastewater service
to Oak Stone Development in DeSoto County?
Recommendation:
Yes. The Commission should amend Certificate No.
104-S to include the territory as described in Attachment A, effective the date
of the Commission’s vote. The resultant order should serve as Ni Florida’s
amended certificate and should be retained by the Utility. The Utility should
charge future customers in the territory added herein the rates and charges
contained in its current tariffs until a change is authorized by the Commission
in a subsequent proceeding. (Sanchez)
Staff Analysis:
The Utility’s application to amend its authorized
service territory is in compliance with the governing statute, Section 367.045,
F.S., and Rule 25-30.036, F.A.C. The appropriate filing fee, as required by
Section 367.145, F.S., was received by the Commission on October 11, 2024. Ni
Florida provided notice of the application pursuant to Section 367.045, F.S.,
and Rule 25-30.030(5)(c), F.A.C. This notice provided 30 days for customers to
file an objection to the extension. No objections to the application have been
received and the time for filing such has expired.
An adequate service territory map and territory
description have been provided to Commission staff as prescribed by Rule
25-30.036(2)(f) and (h), F.A.C. A description of the territory requested to be
extend by the Utility, as well as the resulting service territory description,
is appended to this recommendation as Attachment A. The Utility has submitted
an affidavit consistent with Section 367.045(2)(d), F.S., that it has tariffs
and annual reports on file with the Commission.
Desoto County currently provides water and wastewater service
to the County; however, its wastewater treatment plant is unable to provide
service to the full development. As there are no other utilities in the area
capable of providing service, Oak Stone, LLC, requested service from Ni
Florida. Pursuant to the developer agreement with Oak Stone, LLC, Ni Florida
will construct wastewater treatment plants (WWTPs) to serve the development as
it expands. Three WWTPs of various capacities will be constructed to match the
construction phases of the development. Phase 1 construction includes a WWTP
with a capacity of 60,000 gallons per day (gpd) and is expected to be completed
by December 2025, and operational by February 1, 2026. Phase 2 construction
includes a WWTP with a capacity of 200,000 gpd that is planned to be
operational early 2027. A permit application for the Phase 3 WWTP will be
submitted once the development flows reach 60 percent of the permitted capacity
of the existing WWTPs.
Conclusion
Based on the information above, staff recommends that the Commission
should amend Certificate No. 104-S to include the territory as described in
Attachment A, effective the date of the Commission’s vote. The resultant order
should serve as Ni Florida, Inc.’s amended certificate and should be retained
by the Utility. The Utility should charge future customers in the territory
added herein the rates and charges contained in its current tariffs until a
change is authorized by the Commission in a subsequent proceeding.
Issue 2:
Should the Commission approve Ni Florida’s request
for approval of the special developer agreement and service availability charge
for the proposed service area?
Recommendation:
Yes. Staff recommends that Ni Florida’s proposed
special developer agreement and plant capacity charge of $4,140 for the
proposed service area should be approved. The approved service availability
charge should be effective for service rendered or connections made on or after
the stamped approval date of the tariff pursuant to Rule 25-30.475, F.A.C.
(Bruce)
Staff Analysis:
As discussed in Issue 1,
staff is recommending the approval of an amendment to Ni Florida’s wastewater
certificate to extend its service area to include a new development, Oak Stone,
in Desoto County. For this new development, Ni Florida is proposing a special
developer agreement (Attachment B) with Oak Stone, LLC (Developer) as well as a
plant capacity charge of $4,140 per equivalent residential connection (ERC),
which will be specific to Oak Stone. The proposed charge is a negotiated rate
between the Utility and the Developer. For its wastewater system, the Utility
currently has a main extension charge of $1,710 per ERC that was approved in
2019.
The existing main extension charge will not be applicable to Oak Stone. Ni
Florida is not requesting a main extension charge for Oak Stone because the
collection system will be installed by the Developer and donated to the
Utility.
The developer agreement between
Ni Florida and Oak Stone indicates the Developer will construct the wastewater
collection system and agree to several responsibilities to receive wastewater
service. A few of the responsibilities from the developer agreement include the
following: a) the Developer will install the sewer lateral lines terminating at
a cleanout on each lot near the right-of-way line and conform with standard
details by the Utility; b) the Developer will also be solely responsible for
designing and constructing any required lift stations (other than any lift stations
that may be required to be installed by Utility on the plant site); and c) the
Developer will locate the wastewater collection system in easements or property
dedicated to the Utility, and provide any and all easements on the land which
are reasonably necessary and/or requested by the Utility.
In its application, the Utility
indicated the wastewater treatment facility will have a design capacity of
460,000 gallons per day and the ability to serve 1,950 ERCs. The construction
will be done in three phases. According to the developer agreement, the
Utility’s responsibility relates to construction, operation, and maintenance of
the wastewater treatment plant. Some of the Utility’s responsibilities include
the following: a) the design and construction of the wastewater treatment
plant, which should be in compliance with applicable law and sufficient
capacity to provide wastewater services; b) provide copies of the plans and
specifications of the plant to the Developer for its review and reasonable
suggestions and recommendations; c) obtain at the Utility’s sole cost and
expense, all required federal, state, county, local permits, approvals, and
consents to construct, operate, and maintain the plant on the plant site. Staff
reviewed the Utility’s Developer Agreement and determined that it is pursuant
to Rule 25-30.550(3), F.A.C. Therefore, staff recommends that the Developer
Agreement in this case is appropriate and should be approved.
Service availability charges are
one-time charges applicable to new connections, which allow a customer to pay
its pro rata share of the facilities and plant cost. Rule 25-30.580, F.A.C.,
establishes guidelines for designing service availability charges. Pursuant to
the rule, the maximum amount of the contributions-in-aid-of construction
(CIAC), net amortization, should not exceed 75 percent of the total original
cost, net of accumulated depreciation, of the Utility’s facilities and plant
when the facilities and plant are at their designed capacity. The minimum
amount of CIAC should not be less that the percentage of such facilities and
plant that is represented by the wastewater collection system.
A plant capacity charge is a
service availability charge and allows the Utility to recover each customer’s
pro rata share of the cost of treatment facilities and stay within the
guidelines prescribed in Rule 25-30.580, F.A.C., which provides the minimum and
maximum guidelines for designing service availability charges. Based on the
Utility’s calculation, the proposed plant capacity charge of $4,140, results in
a contribution level of 97.21 percent, which is over the maximum
guideline. However, the Utility
anticipates operating the Oak Stone system as an addition to its system in Lee
County. The Utility indicated that the future consolidation of the two systems
results in a contribution level of 79.81 percent. This contribution level is
slightly higher than Commission rule.
The Commission has indicated that
there are drawbacks to the rule because the guidelines are a moving target, looking
forward in time when the utility plant is at designed capacity. The analysis
involves projections of growth rates and many assumptions that are constantly
changing. In
this case, projected costs for construction could be higher than anticipated. Therefore,
since the proposed charge is negotiated and being compared to projected costs
of construction for the new wastewater treatment plant, staff recommends the
Utility’s proposed plant capacity charge of $4,140 is reasonable. However, the
Commission has the authority to adjust the charge in the future based on actual
costs.
Conclusion
Based on the above, staff recommends that Ni Florida’s
proposed special developer agreement and plant capacity charge of $4,140 for
the proposed service area should be approved. The approved service availability
charge should be effective for service rendered or connections made on or after
the stamped approval date of the tariff pursuant to Rule 25-30.475, F.A.C.
Issue 3:
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. (Dose)
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 Proposed Service
Area
A tract of land located in
Section 29 and 30, Township 39 South, Range 23 East, DeSoto County, Florida,
being more particularly described as follows:
BEGINNING at the Southwest
corner of said Section 30, run thence N. 00°04'04" E., along the West line
of said Section 30, 2188. 72 feet to a point on the Northwesterly right of way
of former Seaboard Coastline Railroad; thence N. 51 °14'02" E., along said
Northwesterly right of way, 4986.09 feet to the North line of said Section 30;
thence N. 89°58'19" E., along said North line, 1421.03 feet to the
Northeast comer of said Section 30; thence S.89°36'38" E., along the North
line aforesaid Section 29 4605.86 feet; thence leaving said North line, run
S.00°23'20" W., 34.71 feet; thence 100.85 feet in a southerly direction
along a non-tangent curve turning to the left, having a central angle of
30°24'43", with a radius of 190.00 feet, having a chord bearing of
S.06°48'06" W. and a chord distance of 99.67 feet; thence 83.35 feet in a
southerly direction along a reverse tangent curve turning to the right, having
a central angle of 35°22'29", with a radius of 135.00 feet, having a chord
bearing of S.09°16'59" W. and a chord distance of 82.03 feet; thence
S.26°58'15" W., 61.41 feet; thence 82.82 feet in a southwesterly direction
along a tangent curve turning to the right, having a central angle of
73°00'14", with a radius of 65.00 feet, having a chord bearing of
S.63°28'22" W. and a chord distance of 77.33 feet; thence N.
79°34'21" W., 46.99 feet; thence S.10°01'10" W., 120.33 feet; thence.
S.16°33'09" W., 80.52 feet; thence 285.38 feet in a southeasterly
direction along a non-tangent curve turning to the left, having a central angle
of 86°03'29", with a radius of 190.00 feet, having a chord bearing of S.41
°37'10" E. and a chord distance of 259.30 feet; thence S.63°01'45"
E., 65.00 feet to the Westerly right of way of State Road S-741 (Kings Highway)
(County Road 769); thence along said Westerly right of way the following four
(4) courses: 1) S.26°58'15" W., 176.42 feet; 2) S.29°13'31" W., 74.10
feet; 3) S.63°47'30" E., 17.90 feet; 4) S.26°12'30" W., 1236.72 feet
to the North right of way of 33rd Avenue, thence S.89°36'40" W., along
said North right of way 681.34 feet to the West right of way of Rainey Street;
thence S.00°06'22" W., along said West right of way 320.01 feet to the
South right of way of 32nd Avenue; thence N. 89°36'40" E., along said North
right of way 523.88 feet to aforesaid Westerly right of way of State Road
S-741; thence S.26°12'30" W., along said Westerly right of way 305.52
feet; thence leaving said Westerly right of way, run N. 89°53'26" W.,
799.38 feet; thence S.00°01 '12" E., 520.04 feet; thence N. 89°53'04"
W., 2883.60 feet to a point on the West line aforesaid Section 29; thence N.
89°14'49" W., 3311.55 feet; thence S.00°02'53" W., 2192.59 feet to
the South line aforesaid Section 30; thence N. 89°07'20" W., 1999.84 feet
to the POINT OF BEGINNING.
Common street names bordering the proposed service area: Kings Highway (CR 769), Raintree
Boulevard, 33rd Avenue, Rainey Street
FLORIDA PUBLIC SERVICE COMMISSION
Authorizes
Ni Florida, Inc.
pursuant to
Certificate Number 104–S
to provide water service in Pasco
and DeSoto Counties 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
5781 06/19/73 C-72696-S Original Certificate
7824 06/02/77 19750558-S Transfer
13823 10/31/84 19840296-SU Amendment
14477 06/18/85 19850149-SU Amendment
15556 01/16/86 19850779-SU TMOC
22852 04/24/90 19900065-SU Amendment
23846 12/10/90 19900020-SU Amendment
PSC-98-1543-FOF-SU 11/20/98 19981081-SU Name Change
PSC-99-1916-PAA-SU 09/27/99
19981079-SU Amendment
PSC-99-2381-FOF-SU 12/06/99 19981080-SU TMOC
PSC-04-1278-AS-SU 12/27/04 20041207-SU Amendment
PSC-08-0226-FOF-SU 04/07/08 20070740-SU Transfer
PSC-15-0315-FOF-WU 08/05/15 20150115-WU TMOC
PSC-2021-0073-FOF-WS 02/08/21 20200221-WS TMOC
PSC-2021-0327-FOF-WS 08/30/21 20210069-WS Name Change
* * 20240144-SU Amendment
* Order Number and date to be provided at time of issuance.
