25-30.457. Limited Alternative Rate Increase

(1) As an alternative to a staff assisted rate case as described in Rule 25-30.455, F.A.C., or to staff assistance in alternative rate setting as described in Rule 25-30.456, F.A.C., water utilities whose total gross annual operating revenues are $335,000 or less for water service and wastewater utilities whose total gross annual operating revenues are $335,000 or less for wastewater service may file with the Office of Commission Clerk an application for a limited alternative rate increase of up to 20 percent applied to metered or flat recurring rates of all classes of service.

(2) The application for limited alternative rate increase must contain the following information:

(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;

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

(c) If the utility is a corporation, the date of incorporation and the names and addresses of all persons who own five percent or more of the utility’s stock;

(d) If the utility is not a corporation, the names and addresses of the owners of the business;

(e) A schedule showing the 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 application;

(f) A schedule showing the current and proposed rates for all classes of customers;

(g) A statement providing the specific basis or bases for the requested rate increase;

(h) If the requested rate increase is based upon the utility’s underearning or the utility’s expectation to underearn, a statement explaining why the utility is, or is expected to, underearn its authorized rate of return;

(i) 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;

(j) A statement that the utility is currently in compliance with its annual report filing in accordance with subsection 25-30.110(3), F.A.C.;

(k) A statement that the utility has paid all required regulatory assessment fees or is current on any approved regulatory assessment fee payment plan;

(l) A statement that an 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 official date of filing of the application; and

(m) Any additional relevant information in support of the application and reasons why the information should be considered.

(3) Within 30 days of the application’s filing date, Commission staff will notify the utility in writing that the application requirements of subsection (2) of this rule have been met or that the requirements of subsection (2) have not been met with an explanation of the application’s deficiencies.

(4) The date of Commission staff’s written notification to the utility that the requirements of subsection (2) of this rule have been met will be considered the date of official acceptance by the Commission of the application. The official date of filing is established as 30 days after the official acceptance by the Commission of the application. The application is deemed denied if the utility does not remit the filing fee as required by paragraph 25-30.020(2)(f), F.A.C., within 30 days after the official acceptance of the application.

(5) A financial or engineering audit of the utility’s financial or engineering books and records will not be required in determining whether to approve or deny the application.

(6) Based upon the criteria contained in subsection (2), the Commission will approve, deny, or approve the application with modifications that may include a reduction or an increase in the requested rate increase, within 90 days from the official filing date as established in subsection (4) of this rule.

(7) Any revenue increase granted under the provisions of this rule shall be held subject to refund with interest in accordance with subsection 25-30.360(4), F.A.C. Subsection 25-30.360(6), F.A.C., does not apply to any money collected subject to refund under this subsection.

(8) The Commission staff will conduct an earnings review of the twelve-month period following the implementation of the revenue increase.

(a) At the end of the twelve-month period, the utility has 90 days to complete and file Form PSC 1025 (03/20), entitled “Limited Alternative Rate Increase Earnings Review,” which is incorporated into this rule by reference and is available at http://www.flrules.org/Gateway/reference.asp?No=Ref-11955.

(b) In the event the utility needs additional time to complete the form, the utility may request an extension of time supported by a statement of good cause that must be filed with Commission staff within seven days prior to the 90-day deadline.  “Good cause” means a showing of financial hardship, unforeseen events, or other events outside the control of the utility, but does not include reasons such as management oversight.

(c) If the Commission staff’s earnings review demonstrates that the utility exceeded the range of its last authorized rate of return on equity, such overearnings, up to the amount held subject to refund, with interest, shall be disposed of for the benefit of the customers. If the Commission staff determines that the utility did not exceed the range of its last authorized return on equity, the revenue increase will no longer be held subject to refund.

(9) In the event the proposed agency action order is protested pursuant to Rule 28-106.111, F.A.C., by a substantially affected person other than the utility, the utility must file a staff assisted rate case application pursuant to Rule 25-30.455, F.A.C., within 21 days from the date the protest is filed or the utility’s application for a limited alternative rate increase will be deemed withdrawn.

(10) Upon the utility filing a staff assisted rate case application pursuant to subsection (9) of this rule:

(a) 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 25-30.360, F.A.C.:

(b) The limit on the maximum increase provided in subsection (1) of this rule will no longer apply; and

(c) The application will be processed under Rule 25-30.455, F.A.C.

Rulemaking Authority 350.127(2), 367.0814, 367.121 FS. Law Implemented 367.0814 FS. History–New 3-15-05, Amended 12-16-08, 8-10-14, 7-1-18, 6-2-20, 7-1-23.