9141200, 25-30.0371 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 9141200

Notice of Proposed Rule

Department:

PUBLIC SERVICE COMMISSION

Chapter:

WATER AND WASTEWATER UTILITY RULES

Overview

RULE:

25-30.0371

Acquisition Adjustments

PURPOSE:

The proposed rule amendments are intended to eliminate some of the excessive complex language, and to modify the amortization schedule for negative acquisitions for water and wastewater utilities. The main substantive revisions to the rule affect the treatment of negative acquisition adjustments. The proposed changes are designed to give more of the benefit of the negative acquisition adjustment to the ratepayers by increasing the amortization period of the acquisition adjustment especially, for those cases in which the systems are purchased at a significant discount. Docket No. 100338-WS.

SUMMARY:

The proposed rule amendments separate cases involving negative acquisitions adjustments in water and wastewater into two groups – those in which the difference between purchase price and net book value is greater than 50 percent, and those in which the difference is 50 percent or less. If the purchase price is 50 percent or less of net book value, half of the negative acquisition adjustment is amortized over seven years, and half over the remaining life of the assets purchased. This amortization provides a greater sharing with customers and puts downward pressure on rate base.

RULEMAKING AUTHORITY:

350.127(2), 367.121(1)(f) FS.

LAW:

367.071(5), 367.081(2)(a), 367.121(1)(a) FS.

PRINT PUBLISH DATE:

10/1/2010 Vol. 36/39

COMMENTS:

From 10/1/2010 To 10/22/2010 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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