|
State of Florida
|
Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
||
|
DATE: |
|||
|
TO: |
Office of Commission Clerk (Teitzman) |
||
|
FROM: |
Division of Economics (Bethea, Bruce, Hudson) Division of Accounting and Finance (McClelland, Norris, Sewards, Vogel) Division of Engineering (P. Buys, Ramos, Smith II) Office of the General Counsel (Dose, Augspurger, J. Crawford) |
||
|
RE: |
|||
|
AGENDA: |
08/05/25 – Regular Agenda – Decision on Suspension of Rates – Participation is at the Discretion of the Commission |
||
|
COMMISSIONERS ASSIGNED: |
|||
|
PREHEARING OFFICER: |
|||
|
SPECIAL INSTRUCTIONS: |
|||
CSWR-Florida Utility Operating Company (CSWR or utility) is a Class A utility providing water and wastewater service to 11 systems in the following counties: Brevard, Citrus, Duval, Highlands, Marion, and Volusia. As the result of recent acquisitions and a grandfather certificate, CSWR is now a Florida domestic limited liability company that owns and operates the water and wastewater systems that are the subject of this rate case application. CSWR is a wholly-owned subsidiary of CSWR-Florida Utility Holding Company, LLC.
In 2024, the utility recorded consolidated company operating revenues of $3,853,102 for water and $3,332,319 for wastewater. CSWR reported a net operating loss of $1,436,909 for water and $136,494 for wastewater. The utility has approximately 144,303 water customers and 87,571 wastewater customers for its combined systems. The following table reflects the rate proceeding in which rates were last established for each of CSWR’s systems.
Last
Proceedings Establishing Rates for CSWR Systems
|
Former Utility Name |
Order |
Issuance Date |
|
Aquarina Utilities, Inc. |
PSC-2020-0158-PAA-WS |
May 15, 2020 |
|
BFF Corp. |
PSC-2002-0487-PAA-SU |
April 8, 2002 |
|
C.F.A.T. H2O, Inc. |
PSC-2011-0366-PAA-WS |
August 31, 2011 |
|
Neighborhood Utilities, Inc. |
PSC-2016-0537-PAA-WU |
November 23, 2016 |
|
North Peninsula Utilities, Corp. |
PSC-2019-0461-PAA-SU |
October 25, 2019 |
|
Rolling Oaks Utilities, Inc. |
Citrus County Approved |
February 1, 2022 |
|
Sebring Ridge Utilities, Inc. |
PSC-1996-0869-FOF-WS |
July 2, 1996 |
|
Sunshine Utilities, Inc. |
PSC-2012-0357-PAA-WU |
July 10, 2012 |
|
TKCB, Inc. |
PSC-2021-0435-PAA-SU |
November 22, 2021 |
|
Tradewinds Utilities, Inc. |
PSC-2011-0385-PAA-WS |
September 13, 2011 |
|
Tymber Creek Utilities, Inc. |
PSC-2011-0345-PAA-WS |
August 16, 2011 |
During the years of 2021-2024, CSWR applied to acquire ten of the systems in this rate proceeding, and all ten transfer dockets were approved by the Commission. On August 26, 2024, CSWR applied for a grandfather certificate for Rolling Oaks Utilities, Inc. as the eleventh system. On July 21, 2025, by Order No. PSC-2025-0280-PAA-WS, the Commission approved the grandfather certificate.[1]
On May 30, 2025, CSWR filed an application for approval of interim and final water and wastewater rate increases. By letter dated June 27, 2025, staff advised the utility that its Minimum Filing Requirements (MFRs) had several deficiencies. The deadline to correct those deficiencies is July 28, 2025. To date, the official date of filing has not been established for noticing purposes.
The utility's application for increased final water and wastewater rates is based on the historical 12-month period ended January 31, 2025, with requested capital recovery for facility improvements, since the time of acquisitions. Additionally, the utility requested a single, consolidated rate structure.
CSWR requested interim rates for all of its systems, designed to generate additional revenues of $2,279,365 for water operations and $225,973 for wastewater operations.
CSWR requested final rates designed to generate additional revenues of $3,223,769 for water operations and $954,881 for wastewater operations.
The intervention of the Office of Public Counsel (OPC) was acknowledged by Order No. PSC-2025-0113-PCO-WS, issued April 7, 2025, in this docket.
The original 60-day statutory deadline for the Commission to suspend the utility’s requested final rates and address its interim rate request was August 5, 2025. However, by letter dated June 30, 2025, the utility agreed to extend the statutory time frame to September 4, 2025, by which the Commission is required to address the suspension of CSWR’s final rates and its interim rate request. This recommendation addresses the suspension of the utility’s requested final rates. A subsequent recommendation will be filed to address the requested interim rates on August 22, 2025, for the September 4, 2025 Commission Conference. The Commission has jurisdiction pursuant to Sections 367.081 and 367.082, F.S.