Case Name: FLORIDA CITIES WATER COMPANY, Petitioner, v. FLORIDA PUBLIC SERVICE COMMISSION, Respondent
Court: Florida Supreme Court
Jurisdiction: Florida
Decision Date: 1980-06-12
Citations: 384 So. 2d 1280
Docket Number: No. 55722
Parties: FLORIDA CITIES WATER COMPANY, Petitioner, v. FLORIDA PUBLIC SERVICE COMMISSION, Respondent.
Judges: ADKINS, OVERTON and SUNDBERG, JJ., and VANN, Associate Justice, concur.
Reporter: Southern Reporter, Second Series
Volume: 384
Pages: 1280–1283

Head Matter:
FLORIDA CITIES WATER COMPANY, Petitioner, v. FLORIDA PUBLIC SERVICE COMMISSION, Respondent.
No. 55722.
Supreme Court of Florida.
June 12, 1980.
John W. Costigan and B. Kenneth Gatlin of Madigan, Parker, Gatlin, Swedmark & Skelding, Tallahassee, for petitioner.
Prentice P. Pruitt, William E. Sundstrom and Richard V. Neill, Tallahassee, for respondent.
Debra E. Cohen of Myers, Kaplan, Levin-son, Kenin & Richards, Miami, for Florida Waterworks Association, amicus curiae.

Opinion:
ENGLAND, Chief Justice.
We have been asked to review an order of the Public Service Commission which, in the course of a rate proceeding, denied Florida Cities Water Company depreciation deductions for contributions in aid of construction [CIAC] and for advances in aid of construction [AIAC].
A hearing examiner assigned to consider Florida Cities' request for a rate increase had allowed the company, as has been customary in water and sewer cases, depreciation deductions for both CIAC and AIAC. Contrary to the hearing examiner's recommendation, the Commission disallowed these deductions on review, offering no reason for the abrupt discontinuance of prior agency policy other than that it was "wrong as a matter of law." Florida Cities and amicus curiae, Florida Waterworks Association, now assert that the Commission's unanticipated declaration of a new policy with respect to CIAC and AIAC violates administrative due process as articulated in chapter 120, Florida Statutes (1977).
Petitioner first argues that the Commission has announced a rule, as that term is defined in section 120.52(14), but that in doing so the Commission failed to follow appropriate procedures for rulemaking as set out in section 120.54. Quite clearly the Commission did not announce its new policy in a rule proceeding — nor was it required to do so. Administrative agencies are not required to institute rulemaking procedures each time a new policy is developed, McDonald v. Department of Banking and Finance, 346 So.2d 569 (Fla. 1st DCA 1977), although that form of proceeding is preferable where established industry-wide policy is being altered. City of Plant City v. Mayo, 337 So.2d 966, 974-75 (Fla.1976).
Nonetheless, when an agency elects to adopt incipient policy in a non-rule proceeding, there must be an adequate support for its decision in the record of the proceeding. McDonald at 583-84. In this case, there is absolutely no record foundation for the Commission's disallowance of CIAC and AIAC deductions. Consequently, we must quash the Commission's order and remand this cause for further proceedings consistent with this opinion.
It is so ordered.
ADKINS, OVERTON and SUNDBERG, JJ., and VANN, Associate Justice, concur.
ALDERMAN, J., concurs in the result only.
BOYD, J., concurs in part and dissents in part with an opinion.