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Agenda for Commission Conference July 13, 2017 ITEM NO. CASE 10**PAA Docket No. 150012-WU — Application for transfer of Certificate No. 390-W from County -Wide Utility Co., Inc. to Southwest Ocala Utility, Inc. in Marion County. Critical Date(s): None Commissioners Assigned: All Commissioners Prehearing Officer: Brise Staff.. ENG: Watts, Graves AFD: Frank, Norris ECO: Johnson GCL: Janjic (Proposed Agency Action for Issue 2) Issue 1: Should the Commission approve the transfer of County -Wide Utility Co., Inc.'s water system and Certificate No. 390-W to Southwest Ocala Utility, Inc.? Recommendation: Yes. The transfer of County-Wide's water system and the transfer of Certificate No. 390-W to SOU is in the public interest and should be approved effective the date of the Commission's vote. The resultant order should serve as SOU's certificate and should be retained by the Utility. The existing rates and charges should remain in effect until a change is authorized by the Commission in a subsequent proceeding. The tariffs reflecting the transfer should be effective for services rendered or connections made on or after the stamped approval date on the tariffs pursuant to Rule 25-30.475, Florida Administrative Code (F.A.C.). SOU should be responsible for filing the Utility's 2015 and 2016 annual reports and all future annual reports. Regulatory assessment fees (RAFs) have been paid through December 31, 2016. SOU should be responsible for all future RAFs. Issue 2: What is the appropriate net book value (NBV) for the SOU water system for transfer purposes? Recommendation: The net book value of the water system for transfer .purposes is $79,051, as of January 1, 2014. Within 90 days of the date of the final order, SOU should be required to notify the Commission in writing, that it has adjusted its books in accordance with the Commission's decision. The adjustments should be reflected in SOU's 2015 Annual Report when filed. Specifically, the Utility should confirm that the adjustments to all applicable National Association of Regulatory Utility Commissioners, Uniform System of Accounts (NARUC USOA) primary accounts as shown on Schedule No. 2, Page 3 of 3, of staff's memorandum dated June 30, 2017, have been made to SOU's books and records. In the event the Utility needs additional time to complete the adjustments, notice should be provided within seven days prior to the deadline. Upon providing good cause, staff should be given administrative authority to grant an extension of up to 60 days. -11- P27