Final Order #2023-01 (Establishment of 2023 Price Index Factor) ATTACHMENT "A"
Final Order No. 2023-01
RE: Establishment of 2023 Price Index Factor
May 08,2023
Collier County
Water and Wastewater Authority
FINAL ORDER NO. 2023-01
COLLIER COUNTY WATER AND WASTEWATER AUTHORITY
A FINAL ORDER OF THE COLLIER COUNTY WATER AND WASTEWATER
AUTHORITY, PURSUANT TO SECTION 1-6, COLLIER COUNTY ORDINANCE NO.
96-6, AS AMENDED, PROVIDING FOR THE ADOPTION OF THE 2023 PRICE INDEX
FACTOR SET ANNUALLY BY THE FLORIDA PUBLIC SERVICE COMMISSION,FOR
UTILIZATION IN PRICE INDEX RATE APPLICATIONS FOR NONEXEMPT WATER
AND/OR WASTEWATER UTILITIES PROVIDING SERVICE IN UNINCORPORATED
COLLIER COUNTY AND THE CITY OF MARCO ISLAND,FLORIDA.
WHEREAS, Collier County Ordinance No. 96-6, as amended, provides for the Collier
County Water and Wastewater Authority (AUTHORITY) to adopt a price index factor for water
and/or wastewater utilities on or before May 15th of each calendar year for the utilization in price
index rate application; and
WHEREAS, Collier County Ordinance No. 96-6, as amended, provides that the price
index factor shall be equivalent to the price index factor set annually by the Florida Public Service
Commission(COMMISSION); and
WHEREAS, the COMMISSION issued Order No. PSC-2022-0438-PAA-WS on
December 27,2022, establishing the 2023 Price Index of 7.07 percent for water and/or wastewater
utilities; and
WHEREAS, the COMMISSION issued Consummating Order No. PSC-2023-0062-CO-
WS on January 23, 2023, enabling Order No. PSC-2022-0438-PAA-WS to become final and
effective on January 23, 2023.
NOW, THEREFORE, IT IS HEREBY ORDERED by the Collier County Water and
Wastewater Authority, in public meeting assembled, that:
1. The 2023 Price Index is 7.07 percent.
2. Any water and/or wastewater utility that intends to increase its rates by implementation
of this price index must notify the AUTHORITY on or after the effective date of this
Final Order of such intent and shall apply the 2023 Price Index to applicable 2022
calendar year operation and maintenance expenses.
3. Utilities using the 2023 Price Index shall use the forms attached as Appendices "A",
"B", "C" and "D", and shall follow all price index application requirements specified
in Collier County Ordinance No. 96-06, as amended,before implementing any index.
4. This Order shall become effective upon adoption by the AUTHORITY and shall
remain in effect until the AUTHORITY authorizes a change.
Page 1 of 2
This Final Order adopted this 8th day of May 2023, after motion, second, and majority vote
favoring the same.
A r ved as to form COLLIER COUNTY WATER AND
d 1 gality: WASTEWATER AUT RITY
Derek D. Perry ELOY RICARDO, CHAIRMAN
Assistant County Attorney
Page 2 of 2
APPENDIX"A"
2023 PRICE INDEX APPLICATION
TEST YEAR ENDED DECEMBER 31, 20221
Utility: WATER WASTEWATER
2022 Operation and maintenance Expenses (O&M)
LESS:
(a) Pass-Through Items:
(1) Purchased Power
(2) Purchased Water
(3) Purchased Sewage
Treatment
(4) Other2:
(b) Rate Case Expenses Included In
2022 Expenses
(c) Adjustments to O&M Expenses from
last rate case, if applicable:
(1)
(2)
Costs to be Indexed
Multiply by the 2023 Price Index Factor 0.0707 0.0707
Indexed Costs
Add: Pass-Through Items
Total of Indexed Costs and Pass-Through Items
Divide Total of Indexed Costs and Pass-Through Items
by Expansion Factor for Regulatory Assessment Fees 0.980 0.980
Increase in Revenue
Divide by 2022 Annualized Revenue3
Percentage Increase in Rates
'This amount should be for the calendar year 2022. If the utility is on a fiscal year, a pro
rata distribution between the utility's two affected annual reports should be included as a
supplemental attachment. The annual reports or general ledgers should be used as the source
document(s). The utility is required to send a worksheet showing the pro rata distribution.
2If applicable, deduct on this line any other expenses for which a pass-through has been
received. Specify the type of expense,which is being deducted.
3If rates changed during or subsequent to calendar year 2022,the book revenues must be adjusted
to show the changes and an explanation of the calculation should be attached to this form. (See
Appendix"B" for instructions and sample format.)
APPENDIX"B"
ANNUALIZED REVENUE WORKSHEET
Have rates charged for customer services changed since January 1, 2022?
( ) If no,the utility should use actual revenues. This form may be disregarded.
( ) If yes, the utility must annualize its revenues. Complete the remainder of this form.
Annualizing calculates the revenue the utility would have earned based upon 2022 customer
consumption at the most current rates in effect. To complete this calculation,the utility will need
consumption data for 2022 to apply to the existing rate schedule. Below is a sample, which may
be used.
CALCULATION OF ANNUALIZED REVENUES'
Number of
Bills/ Current Annualized
Gallons Sold x Rates Revenues
Residential Bills:
5/8"x 3/4"meters
1"meters
1 1/2"meters
2"meters
Total No. Bills 2 2 2
Gallons Sold
Other Revenue
General Service:
5/8"x 3/4"meters
1"meters
1 1/2"meters
2"meters
3" meters
4"meters
6"meters
Total No. Bills 2 2 2
Gallons Sold
Other Revenue
Total Annualized Revenues for 2022 $
'Annualized revenues must be calculated separately if the utility consists of both a water
system and a sewer system. This form is designed specifically for utilities using a base facility
charge rate structure. If annualized revenues must be calculated and further assistance is needed,
contact the Utility Regulation Staff at (239) 252-4150.
2Complete only if billing charge is separate.
APPENDIX "C"
AFFIDAVIT
I, , UNDER OATH hereby affirms that I am the duly
authorized representative of and that the figures and
calculations upon which the change in rates is based are accurate and that the change will not cause
said to exceed its last authorized or calculated rate of return, which is %.
This affidavit is made pursuant to this utility's request for a 2023 price index rate increase.
Title (Print Name)
Pursuant to Section 117.05(13)(a), Florida Statutes, the following notarial certificate is sufficient
for an oath or affirmation:
STATE OF FLORIDA
COUNTY OF
Sworn to (or affirmed) and subscribed before me by means of[ 1 physical presence or [j online
notarization, this day of , , by
Month Year
Name of Person
(NOTARY SEAL)
Notary Signature
Personally Known OR Produced Identification
Type of Identification Produced
APPENDIX "D"
NOTICE TO CUSTOMERS
On May 8th, 2023,the Collier County Water and Wastewater Authority adopted provisions
permitting water and wastewater utilities to adjust the rates it charges to its customers without
those customers bearing the additional expense of a public hearing. The adjustments in rates would
depend on increases or decreases in non-controllable expenses subject to inflationary pressures
such as chemicals, and other operational and maintenance costs.
On , filed notice of intent with
the Growth Management Department (GMD) Operations & Regulatory Management Division, to
increase water and wastewater rates as a result of this action. If acknowledged and approved by
the Collier County Water and Wastewater Authority, water rates will increase by approximately
% and wastewater rates by %. The adjusted rates should be reflected on your
bill.
Should you have any questions, please contact your local utility office. Be sure to have
your account number handy for quick reference. Customers may also direct inquiries to the GMD
Operations & Regulatory Management Division, 2800 Horseshoe Drive North, Naples, Florida
34104 at(239) 252-4150.