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Agenda for <br />Commission Conference <br />July 13, 2017 <br />ITEM NO. <br />CASE <br />12**PAA Docket No. 160165 -SU — Application for staff -assisted rate case in Gulf County by <br />ESAD Enterprises, Inc. d/b/a Beaches Sewer Systems, Inc. <br />(Continued from previous page) <br />Issue 7: Should the Commission utilize the operating ratio methodology as an alternative <br />method of calculating the wastewater revenue requirement for Beaches Sewer Systems, <br />Inc., and, if so, what is the appropriate margin? <br />Recommendation: Yes. The Commission should utilize the operating ratio methodology <br />for calculating the revenue requirement for Beaches. The margin should be 7.25 percent <br />of O&M expense. <br />Issue 8: What is the appropriate revenue requirement? <br />Recommendation: The appropriate revenue requirement is $165,232 resulting in an <br />annual increase of $33,976 (25.89 percent). <br />Issue 9: What is the appropriate rate structure and rate for Beaches Sewer Systems, Inc.? <br />Recommendation: Staff recommends a monthly flat rate for residential and general <br />wastewater service of $40.26 per month as shown on Schedule No. 4 of staff's <br />memorandum dated June 29, 2017. The Utility should file revised tariff sheets and a <br />proposed customer notice to reflect the Commission -approved rates. The approved rates <br />should be effective for service rendered or connections made on or after the stamped <br />approval date on the tariff sheets provided customers have received notice, pursuant to <br />Rule 25-30.475, F.A.C. The Utility should provide proof of noticing within 10 days of <br />rendering its approved notice. <br />Issue 10: What are the appropriate miscellaneous service charges for Beaches Sewer <br />Systems, Inc.? <br />Recommendation: The miscellaneous service charges identified in Table 10-4 of staff's <br />memorandum dated June 29, 2017, are appropriate and should be approved. The Utility <br />should file revised tariff sheets and a proposed customer notice to reflect the <br />Commission -approved miscellaneous service charges. The approved charges should be <br />effective for service rendered or connections made on or after the stamped approval date <br />on the tariff sheets provided customers have received notice, pursuant to Rule 25-30.475, <br />F.A.C. The Utility should provide .proof of noticing within 10 days of rendering its <br />approved notice. <br />Issue 11: Should Beaches Sewer Systems, Inc. be authorized to collect Non -Sufficient <br />Funds Charges (NSF)? <br />Recommendation: Yes. Beaches should be authorized to collect NSF charges. The <br />Utility should file revised tariff sheets and a proposed customer notice to reflect the <br />Commission -approved NSF charges. The approved charges should be effective for <br />service rendered on or after the stamped approval date on the tariff sheets provided <br />customers have received notice, pursuant to Rule 25-30.475, F.A.C. The Utility should <br />provide proof of noticing within 10 days of rendering its approved notice. <br />-16- <br />P32 <br />