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Agenda for Commission Conference July 13, 2017 ITEM NO. CASE 11 **PAA Docket No. 160075-WU — Joint application for authority to transfer assets and Certificate No. 623-W in Orange and Lake Counties from Oak Springs, LLC to Oak Springs MHC, LLC. Critical Date(s): None Commissioners Assigned: All Commissioners Prehearing Officer: Brise Staff., ENG: Watts AFD: Andrews, Norris ECO: Hudson, Johnson GCL: Mapp (Proposed Agency Action for Issue 2) Issue 1: Should the transfer of Oak Springs, LLC's water system and Certificate No. 623 -Win Orange and Lake Counties to Oak Springs MHC, LLC be approved? Recommendation: Yes. The transfer of the water system and Certificate No. 623-W is in the public interest and should be approved effective the date of the Commission vote. The resultant order should serve as the Buyer's certificate and should be retained by the Buyer. 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.). The Seller should be responsible for all Regulatory Assessment Fees (RAFs) payable through the date of closing. The Buyer has filed the 2015 and 2016 Annual Reports, and will be responsible for all future Annual Reports and RAFs subsequent to the date of closing (May 31, 2015). Issue 2: What is the appropriate net book value (NBV) for the water system for transfer purposes and should an acquisition adjustment be approved? Recommendation: The NBV of the water system for transfer purposes is $106,950 as of May 31, 2015. An acquisition adjustment should not be included in rate base. To ensure that the Buyer adjusts its books in accordance with the Commission decision, it should notify the Commission, within 90 days of the final order in this docket, confirming that the adjustments to all the applicable National Association of Regulatory Utility Commissioners (NARUC), Uniform System of Accounts (USDA) accounts have been made to the Buyer's books and records. In the event the Buyer needs additional time to complete the adjustments, notice should be provided to staff within seven days prior to the deadline. Upon provided good cause, staff should be given administrative authority to grant an extension of up to 60 days. The adjustments should be reflected in the Buyer's 2017 Annual Report when filed. -13- P29