Florida Administrative Code › 25 - PUBLIC SERVICE COMMISSION › 25 - Departmental › Chapter 25-30 - WATER AND WASTEWATER UTILITY RULES › Section 25-30.434 - Application for Allowance for Funds Prudently Invested (AFPI) Charges

Current through Reg. 50, No. 138; July 16, 2024
(1) An Allowance for Funds Prudently Invested
				(AFPI) charge is a mechanism which allows a utility the opportunity to earn a
				fair rate of return on prudently constructed plant held for future use from the
				future customers to be served by that plant in the form of a charge paid by
				those customers.
(2) Each
				application for AFPI charges shall comply with the notice requirements
				specified in Rule  25-30.4345, F.A.C.
(3) Each application for AFPI charges shall
				provide the following information. If any of the following items do not apply
				to the applicant, the applicant shall state the reason it does not apply.
(a) The applicant's name and
				address.
(b) A statement describing
				how the noticing requirements have been complied with, including a copy of the
				actual notice(s).
(c) The numbers
				of all Commission order(s) that:
1. Previously
				established customer rates for the applicant either in a rate case or a reverse
				make-whole proceeding; and
2.
				Established AFPI charges for the applicant.
(d) The charge shall be calculated for one
				equivalent residential connection (ERC) on a monthly basis up to the time the
				utility reaches the designed capacity of the plant for which the charge
				applies. The charges shall cease when the plant has reached its designed
				capacity.
(e) A statement
				explaining the basis for the requested charges and conditions.
(f) The dollar amount of the non-used and
				useful plant and the accumulated depreciation, and the methodology used to
				determine these amounts. The net of these two amounts shall be considered the
				cost of qualifying assets. Separate balances for plant and for accumulated
				depreciation shall be reported for the water treatment plant, wastewater
				treatment plant, water transmission and distribution system and wastewater
				collection system.
(g) The plant
				capacity related to each of the systems in (f) above and the methodology used
				to determine the amount.
(h) The
				number of future customers in number of ERCs related to the non-used and useful
				plant by system.
(i) The amount of
				depreciation expense and composite depreciation rate related to the non-used
				and useful plant by system.
(j) The
				overall rate of return requested for the AFPI charge and the workpapers
				supporting the calculation.
(k) The
				last authorized rate of return on equity and references to the docket number of
				the last rate case and the resulting order.
(l) The state and federal income tax rates
				requested for calculating the AFPI charge.
(m) All other costs such as non-used and
				useful property taxes and operation and maintenance expenses removed in the
				last rate case.
(n) The test year
				to be used in the calculation, the month that the utility expects the charge to
				go into effect and the number of years the utility expects to collect the
				charge. Provide a detailed explanation of why the number of years to collect
				the charge represents a reasonable and prudent management decision in the
				construction of plant.
(o) The
				workpapers and calculations used to develop the proposed AFPI charge. The
				utility may obtain a diskette that outlines the calculation and schedules to be
				used by calling or writing the Division of Accounting and Finance, (850)
				413-6410. The required schedules that shall be submitted are "AFPI Filing
				Schedules", Commission Form PSC/AFD 26 (11/93), incorporated by reference into
				this rule, and are as follows:
Schedule 1 - List of Information Imputed Into
				  Calculation
Schedule 2 - Calculation Of Carrying Costs Per ERC
Schedule 3 - Calculation Of Carrying Costs Per ERC Per
				  Year
Schedule 4 - Calculation Of Carrying Costs Per ERC Per
				  Month
The form may be obtained from the Commission's Division of
				  Accounting and Finance, 2540 Shumard Oak Boulevard, Tallahassee, Florida
				  32399-0850.
(p) The revised
				or original tariff sheets necessary to incorporate the AFPI charge into the
				tariff.