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Florida Administrative Code (Last Updated: April 18, 2024) |
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25. Public Service Commission |
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D25. Departmental |
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25-30. Water And Wastewater Utility Rules |
1(1) Under the operating ratio methodology, instead of calculating the utility’s revenue requirement based on a rate of return on the utility’s rate base, the revenue requirement includes the utility’s operating expenses plus a margin of 12 percent of the utility’s operation and maintenance expenses. For utilities that are resellers, purchased water and purchased wastewater expenses will be removed from operation and maintenance expense before the 12 percent margin is applied. The operating ratio adjustment shall be no more than $15,000.
83(2) In rate cases processed under rule 9025-30.455, 91F.A.C, the Commission will use the operating ratio methodology to establish the utility’s revenue requirement when:
107(a) The utility’s rate base is no greater than 125% of operation and maintenance expenses; and
123(b) The use of the operating ratio methodology does not change the utility’s qualification for a staff assisted rate case under subsection 14525-30.455(1), 146F.A.C.
147Rulemaking Authority 149367.0814(9) FS. 151Law Implemented 153367.0814(9) FS. 155History–New 3-28-19.
