25-30.457. Limited Alternative Rate Increase  


Effective on Tuesday, June 12, 2018
  • 1(1) As an alternative to a staff assisted rate case as described in rule 1525-30.455, 16F.A.C., or to staff assistance in alternative rate setting as described in rule 2925-30.456, 30F.A.C., water utilities whose total gross annual operating revenues are $300,000 or less for water service and wastewater utilities whose total gross annual operating revenues are $300,000 or less for wastewater service may petition the Commission for a limited alternative rate increase of up to 20 percent applied to metered or flat recurring rates of all classes of service by filing with the Office of Commission Clerk the information required by subsections (7), (8) and (9) of this rule.

    111(2) Within 30 days of receipt of the completed petition, the Commission will evaluate the petition and determine the petitioner’s eligibility for a limited alternative rate increase.

    138(3) The Commission will notify the petitioner in writing as to whether the petition is accepted or denied. If the petition is accepted, staff assistance in alternative rate setting will be initiated. If the petition is denied, the notification of petition denial will state the deficiencies in the petition with reference to the criteria set out in subsection (5) of this rule.

    200(4) The official date of filing will be 30 days after the date of the written notification to the petitioner of the Commission’s acceptance of the petition.

    227(5) In determining whether to grant or deny the petition, the Commission will consider the following criteria:

    244(a) Whether the petitioner qualifies for staff assistance pursuant to subsection (1) of this rule;

    259(b) Whether the petitioners’ books and records are organized consistent with rule 27125-30.110, 272F.A.C, so as to allow Commission personnel to verify costs and other relevant factors within the 30-day time frame set out in this rule;

    296(c) Whether the petitioner has filed annual reports;

    304(d) Whether the petitioner has paid applicable regulatory assessment fees;

    314(e) Whether the petitioner has at least one year of experience in utility operation;

    328(f) Whether the petitioner has filed additional relevant information in support of eligibility together with reasons why the information should be considered;

    350(g) Whether the utility was granted a rate case increase within the 2-year period prior to the receipt of the petition under review;

    373(h) Whether a final order in a rate proceeding that established the utility’s rate base, capital structure, annual operating expenses and revenues has been issued for the utility within the 7-year period prior to the receipt of the petition under review.

    414(6) The Commission will deny the petition if the petitioner does not remit the filing fee, as provided by paragraph 43425-30.020(2)(f), 435F.A.C., within 30 days after official acceptance of the petition.

    445(7) Each petitioner for limited alternative rate increase shall provide the following general information to the Commission:

    462(a) The name of the utility as it appears on the utility’s certificate and the address of the utility’s principal place of business; and,

    486(b) The type of business organization under which the utility’s operations are conducted:

    4991. If the petitioner is a corporation, the date of incorporation and the names and addresses of all persons who own five percent or more of the petitioner’s stock; or

    5292. If the petitioner is not a corporation, the names and addresses of the owners of the business.

    547(8) The petitioner shall provide a schedule showing:

    555(a) Annualized revenues by customer class and meter size for the most recent 12-month period using the rates in effect at the time the utility files its petition; and,

    584(b) Current and proposed rates for all classes of customers.

    594(9) The petitioner shall provide a statement that the figures and calculations upon which the change in rates is based are accurate and that the change will not cause the utility to exceed its last authorized rate of return on equity.

    635(10) A financial or engineering audit of the utility’s financial or engineering books and records shall not be required in conjunction with the petition under review.

    661(11) The petition will be approved, denied, or approved with modifications within 90 days from the official filing date as established in subsection (4) of this rule.

    688(12) Any revenue increase granted under the provisions of this rule shall be held subject to refund with interest in accordance with rule 71125-30.360, 712F.A.C., for a period of 15 months after the filing of the utility’s annual report required by rule 73025-30.110, 731F.A.C., for the year the adjustment in rates was implemented.

    741(13) To insure overearnings will not occur due to the implementation of this rate increase, the Commission will conduct an earnings review of the utility’s annual report to determine any potential overearnings for the year the adjustment in rates was implemented.

    782(14) If, within 15 months after the filing of a utility’s annual report the Commission finds that the utility exceeded the range of its last authorized rate of return on equity after an adjustment in rates, as authorized by this rule, was implemented within the year for which the report was filed, such overearnings, up to the amount held subject to refund, with interest, shall be disposed of for the benefit of the customers.

    856(15) In the event of a protest of the Proposed Agency Action Order pursuant to rule 87228-106.111, 873F.A.C., by a substantially affected person other than the utility, unless the Proposed Agency Action Order proposes a rate reduction, the utility may implement the rates established in the Proposed Agency Action Order on a temporary basis subject to refund with interest in accordance with rule 91925-30.360, 920F.A.C., upon the utility filing a staff assisted rate case application pursuant to rule 93425-30.455, 935F.A.C., within 21 days of the date the protest is filed.

    946(16) In the event of a protest, the limit on the maximum increase provided in subsection (1) of this rule shall no longer apply.

    970(17) If the utility fails to file a staff assisted rate case application within 21 days in the event of a protest, the petition for a limited alternative rate increase will be deemed withdrawn.

    1004Rulemaking Authority 1006350.127(2), 1007367.0814, 1008367.121 FS. 1010Law Implemented 1012367.0814 FS. 1014History–New 3-15-05, Amended 12-16-08, 8-10-14, 6-12-18.