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Agenda for <br />Commission Conference <br />August 6, 2019 <br />ITEM NO. CASE <br />3**PAA <br />Docket No. 20160101 -WS — Application for increase in water and wastewater rates in <br />Charlotte, Highlands, Lake, Lee, Marion, Orange, Pasco, Pinellas, Polk, and Seminole <br />Counties by Utilities, Inc. of Florida. <br />Critical Date(s): None <br />Commissioners Assigned: All Commissioners <br />Prehearing Officer: Polmann <br />Staff: AFD: Norris, Sewards <br />ECO: Bruce, Hudson, Ramos <br />ENG: Ellis <br />GCL: Trierweiler, Cowdery <br />(Parties May Participate on Issues 1, 2, 3, and 4 - Proposed Agency Action Issue 5) <br />Issue 1: What adjustments should be made to comply with the First District Court of <br />Appeal's mandate? <br />Recommendation: Based on the record, the flows associated with prepaid customers do <br />not meet the statutory criteria of Section 367.081(2)(a)2.b., F.S., and should be removed. <br />Therefore, the revised used and useful (U&U) values for LUSI's wastewater treatment <br />plant (WWTP) and Sandalhaven's Englewood Water District (EWD) capacity should be <br />53.54 percent and 42.24 percent, respectively. To reflect the revised U&U percentages, <br />wastewater rate base should be decreased by $476,060, net depreciation expense should <br />be decreased by $24,888, and Taxes Other Than Income (TOTI) should be decreased by <br />$13,426. Additionally, Accumulated Deferred Income Taxes (ADITs) should be reduced <br />by $6,853. <br />Issue 2: What is the total revenue requirement after staffs recommended adjustments <br />made in accordance with the First District Court of Appeal's mandate? <br />Recommendation: Based on the adjustments discussed in the previous issue, staff <br />recommends a total revenue requirement of $15,658,716 for water and $18,747,174 for <br />wastewater. <br />Issue 3: What are the appropriate rates after adjustments to comply with the First <br />District Court of Appeal's mandate? <br />Recommendation: Staff recommends no adjustments to UIF's existing water rates. The <br />appropriate wastewater rates are reflected on Schedule No. 4 attached to staff's <br />memorandum dated July 25, 2019, and should be effective for service rendered on or <br />after the stamped approval date on the tariff sheets pursuant to Rule 25-30.475(1), Florida <br />Administrative Code (F.A.C.). The Utility should file revised tariff sheets and a proposed <br />customer notice to reflect the Commission -approved wastewater rates. In addition, the <br />approved wastewater rates should not be implemented until staff has approved the <br />proposed customer notice and the notice has been received by the customers. The Utility <br />should provide proof of the date notice was given within 10 days of the date of the notice. <br />-3 <br />Z -ZI <br />