§ 28-293. Powers and duties of the county utility regulatory authority.

(a)

The Hernando County Utility Regulatory Authority (authority), hereby established, shall have the authority:

(1)

To grant, amend, deny, modify, revoke, suspend, transfer, or otherwise act related to a franchise certificate of a utility;

(2)

To institute litigation;

(3)

To fix rates which are just, reasonable, compensatory, not unfairly discriminatory and fairly balance the interest of the utility and the ratepayers pursuant to United States and Florida Constitutions and decisions of the U.S. and Florida Supreme Courts;

(4)

To approve, modify, or deny the filing of any tariff, or other rule or regulation proposed to be established by or on behalf of an applicant or utility;

(5)

To establish, and from time-to-time amend a uniform system and classification of accounts for all regulated utilities which among other things, shall establish adequate, fair and reasonable depreciation rates and charges. The uniform system and classification of accounts to be utilized shall be the latest class of accounts as published by National Association of Regulatory Utility Commissioners (NARUC), unless otherwise specified by the authority;

(6)

To require regular or emergency reports from a utility, including, but not limited to, financial reports, as the authority deems necessary to ensure that reasonably safe, adequate and proper service is provided to any person entitled to such service, as economically feasible, at appropriate rates. If the authority finds a financial report to be incomplete, incorrect, or inconsistent with the uniform system and classification of accounts, the authority may require a new report or supplemental report, either of which the authority for good cause may require to be certified by an independent public accountant licensed under Florida Statute;

(7)

To compel repairs, improvements, additions and/or extensions to any utility facility or to require the construction of a new facility, if deemed reasonably necessary by the authority to provide safe, adequate and proper service to any person entitled to such service; except that no utility shall be required either to extend its utility service outside the service territory described in its franchise certificate, or to make additions to its plant or equipment to serve outside such service territory unless the authority first finds that the utility is financially able to make such additional investment without impairing its capacity to serve its existing customers;

(8)

To compel interconnections of service or facilities between utilities; and to approve any plant capacity charges, or rates related to either, provided the authority first finds that the utility is financially able to make such additional investment without impairing its ability or capacity to serve its existing customers;

(9)

To enter orders regarding any matter pertaining to the regulation of utilities, deemed by the authority to be necessary or convenient to carry out this article or rule of the board, including but not limited to actions on written petitions to the authority by customers of a regulated utility who are dissatisfied with issue resolution efforts of the administrator and who have provided ten (10) days notice to the administrator of intent to file such a petition, provided that any such order shall issue only upon due notice to and opportunity for the affected utility to be heard before the authority in a public meeting;

(10)

To issue charging documents to any utility or franchisee for enforcement of a legal order, mandate, decree, or instruction of the authority and/or for violation of any provision of this article, or the rules of the board, or of the authority; and to take all actions necessary to fully prosecute said charges as provided for in this article;

(11)

To hold hearings with respect to the provisions of this article or to appoint a hearing officer for the purpose of conducting hearings on such matters involving utilities as the authority may designate, including, but not limited to, rates, fees, charges, rules, regulations, conditions of service and franchise applications, extensions, renewals, suspensions, and revocations;

(12)

To adopt rules for the conduct of such hearings;

(13)

To take testimony under oath, if deemed necessary by the authority;

(14)

To require the filing of reports and/or other information and data by a utility and/or any affiliated companies, including its parent company, regarding transactions or allocations of common and other costs among the utility and such affiliated companies; the authority may also require reports or other data necessary for it to ensure that the utility's ratepayers do not subsidize non-utility activities. It shall be in the authority's discretion to make a determination as to what shall constitute an affiliate. However, if there is a dispute as to whether such entity is an affiliate, all reports required by the authority for that entity shall be promptly supplied but shall be kept under seal by the authority pending an opinion by a court of competent jurisdiction;

(15)

To employ, contract with or appoint, and fix the compensation of an administrator, accountants, advocates, technical, legal, clerical employees and experts necessary to carry out this article, pursuant to its budget. Compensation shall be consistent with normal charges by experts of similar experience in the state. The budget shall be not greater than the revenues anticipated for the year and available from prior years, unless otherwise approved by the board. The board, at its option, may employ or contract with, and fix the compensation of an administrator, accountants, technical, legal, clerical employees and experts necessary to support the authority;

(16)

To take actions, including seeking injunctive relief, to effectuate any provision of this article;

(17)

For all matters not covered by this article or reserved to the board, or any regulation in the future adopted by the board or authority, the authority may follow the appropriate rules of the Florida Public Service Commission (FPSC), currently Chapter 25-30, F.A.C., for guidance as needed. No rule of the FPSC shall per se grant to any person or entity any procedure or substantive right or privilege not granted in this article, or in any rule of the board, or the authority, or require any duty or obligation not required or authorized to be required by this article, or any rule of the board or the authority;

(18)

To issue subpoenas;

(19)

To enact rules to carry out its duties and responsibilities and to apply and effectuate the provisions of this article;

(20)

Unless prohibited by law, the authority or administrator, for good cause, may grant extensions to time periods specified in this article or in rules of the board or authority;

(21)

To appoint, at its sole discretion, hearing officers to hear any or all disputes pertaining to this article or utility service in the county. The hearing officer shall promptly render to the authority a written recommended order containing findings of fact, conclusions or law and recommendations;

(22)

To prescribe standards of quality and measurements and to prescribe service rules to be observed by each utility, except to the extent such authority is expressly given to another governmental agency;

(23)

To prescribe and amend forms for use by utilities in compliance with any provision of this article or rule of the board;

(24)

Upon reasonable notice, which is deemed to be at least forty-eight (48) hours, to have the staff or experts employed or contracted by the authority inspect any and all utility facilities and plant; and

(25)

To otherwise do all things necessary or convenient to full and complete exercise of its jurisdiction and/or duties under this article.

(b)

The following are not subject to regulation by the board or the authority as a utility nor are they subject to the provisions of this article, except as expressly provided in this article or other valid ordinance of the board:

(1)

Property used solely or principally in the business of bottling, selling, distribution or furnishing bottled water or portable treatment facilities; or

(2)

Systems owned, operated, managed, or controlled by governmental authorities, which are governed by collegial boards composed of natural persons who are either elected by voters in all or any portion of the county or appointed by such collegial elected officials, including water or wastewater facilities operated by private firms under water or wastewater facility privatization contracts as defined in F.S. § 153.91; and non-profit corporations formed for the purpose of acting on behalf of a political subdivision within the county with respect to a water or wastewater facility; or

(3)

Manufacturers providing such utility service solely in connection with their own manufacturing operations; or

(4)

Each public lodging establishment providing such utility service solely in connection with lodging service to its guests; or

(5)

Each landlord or homeowners association providing utility service solely to their own tenants or unit owners without specific compensation for such utility service;

(6)

Nonprofit corporations, associations, or cooperatives providing service solely to members who own and control such nonprofit corporations, associations, or cooperatives;

(7)

Any person who resells water or wastewater service within the county at a rate or charge which does not exceed the actual purchase price thereof, if such person files at least annually with the authority a list of charges and rates for all water or wastewater service sold, the source and actual purchase price thereof, and any other information required by the authority to justify the exemption;

(8)

Wastewater treatment plants operated exclusively for disposing of industrial wastewater;

(9)

Any person providing only nonpotable water for irrigation purposes in a geographic area where potable water service is available from a governmentally or privately owned utility or a private well; or

(10)

The sale for resale of bulk supplies of water to utility which is regulated pursuant to this article or which is operated by the county, any department thereof, or the county water and sewer district or any successor entity; or by a municipality within the county.

(c)

County employees shall keep an accurate record of any time they spend on authority matters. In order to be reimbursable, all such time spent by county employees shall be authorized by the administrator. An accounting of the time spent shall be submitted by the administrator to the authority monthly for approval. The authority shall reimburse the county for the approved services of county employees at the employees' normal rate of pay plus benefits. Any disputes concerning the propriety of the level of expenses shall be decided by the board.

(d)

Franchise fees.

(1)

Pursuant to F.S. § 337.401(1), the occupation of the rights-of-way owned by Hernando County and located in the unincorporated portion of Hernando County, Florida, by a utility for the purpose of constructing or maintaining or erecting or installing utility systems shall be subject to the payment of rent. "Franchise fee" shall mean the rental charge to be paid by utilities presently occupying or proposing to occupy rights-of-way owned by Hernando County and shall include the successors or assigns of any such utilities.

(2)

Each franchise certificate shall contain a provision that the utility, as consideration for the authority's grant of the franchise, is to pay as rent a franchise fee equal to an amount not to exceed four and one-half (4.5) percent of the utility's gross revenues collected from the sale or provision of the services in the unincorporated areas of Hernando County, Florida, to residential, commercial, institutional, and industrial customers. The authority shall determine the amount of the franchise fee on a case-by-case basis.

(3)

Each utility shall pay the franchise fee to the authority in quarterly installments. Each quarterly installment must be paid within ninety (90) days of the end of that fiscal quarter of the utility, i.e., the payments are made ninety (90) days in arrears. With each payment, the utility shall file with the authority, a statement of gross receipts for the applicable quarter, verified under oath by an authorized financial officer of the utility.

(4)

Each utility that fails to promptly submit to the county all required fees and accurate statement of gross receipts within the prescribed period shall pay the county a late fee charge of one (1) percent of the delinquent fee per month, or fraction of a month plus all costs incurred by the authority for collecting the fee.

(Ord. No. 2002-20, § 3, 10-8-02; Ord. No. 2016-15, § 3, 8-9-16)