21493665, 25-30.4575 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 21493665

Notice of Proposed Rule

Department:

PUBLIC SERVICE COMMISSION

Chapter:

WATER AND WASTEWATER UTILITY RULES

Overview

RULE:

25-30.4575

Operating Ratio Methodology

PURPOSE:

To codify the Commission’s use of the operating ratio methodology for water and wastewater utilities in staff assisted rate cases.
Docket No. 20180141-WS

SUMMARY:

The operating ratio methodology assists the small water and wastewater utilities in staff assisted rate cases by substituting operation and maintenance expenses for rate base in calculating the amount of return component of revenue requirement. The operating ratio methodology will only be used for those utilities whose rate base is no greater that 125 percent of operation and maintenance expenses and will only be used for utilities that continue to qualify for a staff assisted rate case. The operating ratio methodology allows eligible utilities to receive margin of 12 percent of the utility’s operation and maintenance expenses. Eligible utilities will not receive more than a $15,000 margin.

RULEMAKING AUTHORITY:

367.0814(9) FS.

LAW:

367.0814(9) FS.

PRINT PUBLISH DATE:

2/7/2019 Vol. 45/26

COMMENTS:

From 2/7/2019 To 2/28/2019 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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