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CCWWA Final Order #2024-01ATTACHMENT "A" Final Order No. 2024-01 RE: Establishment of 2024 Price Index Factor February 29, 2024 Collier County Water and Wastewater Authority CAO FINAL ORDER NO.2024-01 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 2024 PRICE INDEX FACTOR SET ANNUALLY BY THE FLORIDA PUBLIC SERVICE COMMISSION, FOR UTILIZATION IN PRICE INDEX RATE APPLICATIONS FOR INVESTOR -OWNED WATER AND/OR WASTEWATER UTILITIES OPERATING IN COLLIER COUNTY AND THE CITY OF MARCO ISLAND. 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 15' 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-2023-0383-PAA-WS on December 21, 2023, establishing the 2024 Price Index of 3.24 percent for water and/or wastewater utilities; and WHEREAS, the COMMISSION issued Consummating Order No. PSC-2024-0013-CO- WSon January 11, 2024, enabling Order No. PSC-2023-0383-PAA-WS to become final and effective on January 11, 2024 NOW, THEREFORE, IT IS HEREBY ORDERED by the Collier County Water and Wastewater Authority, in public meeting assembled, that: 1. The 2024 Price Index is 3.24 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 2024 Price Index to applicable 2023 calendar year operation and maintenance expenses. 3. Utilities using the 2024 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. [24-OPS-0 1079/1845897/1 ] Page 1 of 8 090 This Final Order adopted this 29th day of February 2024, after motion, second, and majority vote favoring the same. COLLIER COUNTY WATER AND WASTEWATER AUTHORITY BN: Eloy Ricardo, Chair Derek D. Perry, Esq. Assistant County Attorney [24-OPS-01079/1845897/1] Page 2 of 8 C� 70 APPENDIX "A" 2024 PRICE INDEX APPLICATION TEST YEAR ENDED DECEMBER 31, 2023' Utility: WATER WASTEWATER 2023 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 2023 Expenses (c) Adjustments to O&M Expenses from last rate case, if applicable: (1) (2) Costs to be Indexed Multiply by the 2024 Price Index Factor 0.0324 0.0324 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 2023 Annualized Revenue Percentage Increase in Rates 'This amount should be for the calendar year 2023. 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. [24-OPS-01079/1845897/1] Page 3 of 8 G 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 2023, 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.) [24-OPS-01079/1845897/11 Page 4 of 8 P) a 0 APPENDIX "B" ANNUALIZED REVENUE WORKSHEET Have rates charged for customer services changed since January 1, 2023? ( ) 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 2023 customer consumption at the most current rates in effect. To complete this calculation, the utility will need consumption data for 2023 to apply to the existing rate schedule. Below is a sample, which may be used. CALCULATION OF ANNUALIZED REVENUES' Number of Bills/ Gallons Sold x Residential Bills: 5/8" x 3/4" meters 1" meters 1 '/2" meters 2" meters Total No. Bills Gallons Sold Other Revenue General Service: 5/8" x 3/4" meters 1" meters 1 %2" meters 2" meters 3" meters 4" meters 6" meters Total No. Bills Gallons Sold Other Revenue Total Annualized Revenues for 2023 2 2 Current Rates 2 2 Annualized Revenues `A ►A [24-OP S-01079/ 1845 897/ 1 ] Page 5 of 8 '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. [24-OPS-01079/1845897/11 Page 6 of 8 AO 0 I, authorized representative of APPENDIX "C" AFFIDAVIT UNDER OATH hereby affirms that I am the duly 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 2024 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 ❑ physical presence or ❑ online notarization, this day of ear , by (name of person making statement)-. (Signature of Notary Public - State of Florida) (Print, Type, or Stamp Commissioned Name of Notary Public) Personally Known OR Produced Identification Type of Identification Produced [24-OPS-01079/1845897/11 Page 7 of 8 APPENDIX "D" NOTICE TO CUSTOMERS On February 29, 2024, 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. [24-OPS-01079/1845897/11 Page 8 of 8 O`d0