BEFORE THE FLORIDA PUBLIC SERVICE COMMI SSION
In Re: Request for Exemption
From Florida Public Service
commission Regulation for
Provision of Water and
Wastewater Service in Clay
County by MEADOWLAND SHOPPING
CENTER .
) DOCKET NO . 930028-WS
) ORDER NO. PSC-93-1451-FOF-WS
) ISSUED: October 5, 1993
October 18 , 1993
) RE-ISSUED:
)
)
)
____________________________________________________________ )
The following Commissioners participated in the disposition of
this matter :
J. TERRY DEASON, Chairman
SUSAN F. CLARK
JULIA L. JOHNSON
ORDER TO SHOW CAUSE
BY THE COMMISSION:
On January 5, 1993, Mr. Virgil Allison applied for an
exemption from th~s Commission's jurisdiction f o r the provision of
water and wastewater s e rvice to tenants of the Meadowla nd Shopping
Center {Meadowland) in Duval County. Meadowland consists of f o ur
separate
buildings each consist ing of a pproximately eight
individually metered stores . Both water and wastewater service are
provided to Meadowland by Kings l ey Service Company (Kingsley), and
Mr. Allison resells it to the individual tenants.
Mr. Allison initially applied for a n exemption from this
Commission's regulation pursuant to Section 367 . 022(8), Florida
Statutes. However, upon being advised that his facility would not
qualify for a reseller exemption because he was reselling service
a t a rate which exceeded his purchase price , he ceased billing
s eparately for service and rolled the utility cost into the monthly
rental charges.
However, this Order concerns only an associated
complaint and not the merits of the exemption application.
Mr. Richard Adams, a former tenant of Mr. Allison , had
initially alerted this Commission to the existence of Mr. Allison ' s
operation.
Upon receipt of the application, we contacted Mr .
Allison and advised him that he would not qualify for a n exemption
,..
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ORDER NO. PSC- 93-1451- FOF-WS
DOCKET NO . 930028-WS
PAGE 2
because his charges were in excess of those charged to him by
Additionally, Mr. Allison was advised of Mr. Adams '
Kingsley .
concerns r e garding excessive billing and that t he potential for a
Mr. Allison was not receptive to an informal
refund existed.
In May, Mr . Adams filed a formal
settlement of this matter.
complaint with this Commission seeking a refund of excessive
Mr. Allison was advised of the complaint and r esponded
charges.
However, Mr.
within the given time seeking clarification.
Allison's response only requested clarification on many questions
to which he apparently already knew the answers. For example, he
asked what rate he was charged by Kingsley, what rate he charged
Mr. Adams, and how much water Mr. Adams had used while one of his
customers .
Based upon Mr. Allison's exemption application and information.,- ·
filed by Mr. Adams, Mr. Allison was reselling and billing
separately for water and wastewater service at rates which exceeded
that of the supplier of water and wastewater service . Meadowland
was therefore operating as a jurisdictional utility .
each
requires
Statutes,
Florida
367.031,
Section
jurisdictional utility to obtain a certificate of authorization
Further, Section 367.081{1), Florida
from this Commission.
Statutes, mandates that a utility may only charge rates and charges
which have been approved by this Commission. Therefore, Meadowland
is in violation of both statutes.
As p art of the exemption application filed . with this
Commission, Mr . Allison provided 1992 billing information for all
his tenants and provided copies of his bills from Kingsley for
1992. Within his complaint, Mr. Adams provided billing information
Billing
for the entire period that he was Mr. Allison's tenant .
information for the other tenants for other than 1992 was not
We have reviewed all billing information relating
provided .
specifically to Mr. Adams ' complaint.
During the period of April 1990 through August 1992, Mr . Adams
operated a coin laundry at Meadowlands. Based upon the nature of
his business, he consumed more water than the other businesses in
During his tenancy, the combined water and
the shopping center .
wastewater rate billed by Kingsley to the building, in which·Mr.
Adams was one of eight tenants, consisted of a quarterly base
facility charge of $177.77 and a gallonage c harge of $1.92 per
M.r. Allison in turn billed Mr. Adams' laundry a
1, 000 gallons.
combined water and wastewater rate consisting of a quarterly base
ORDER NO. PSC-93-1451-FOF-WS
DOCKET NO. 930028-WS
PAGE 3
facility charge of $108.96 with a gallonage charge of $3.25 per
1,000 gallons. Based upon the rate differential, the bill for the
laundry exceeded the bill from Kingsley for all eight tenants .
Such a scenario is obviously intended to generate revenues in
excess of the cost of service.
As previously noted, the laundry was the largest water user in
the shopping center. Based on this one tenant, which was the only
tenant for which all billing information was available, the
appropriate amount of the refund to Mr. Adams shall be $3,912.18 .
Therefore, we find it appropriate to order Mr. Allison to show
cause, in writing, within 20 days why he should not be fined up to
$5,000 per day for operating his utility without a certificate in
violation of Section 367.031 and further be required to refund t ~,- ­
his tenants at Meadowland Shopping Center all r evenues based upo n
rates i n excess of those charged by Kingsley from January 1, 1990
through February 28, 1993, the date in which he ceased charging
separately for water and wastewater service.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Mr.
Virgil Allison, <.. wner of Meadowland Shopp ing Center, in Duval
County, s hall show cause, in writing, within 20 days of the
issuance of this Order, why he sho uld not be fined $5,000 per day
for f ailure to comply with Section 367.031, Florida Statutes and
ordered to refund Mr. Adams the amount of $3,912.18 a nci refund his
other tenants at Meadowland Shopping Center all revenues based upon
rates in excess of those charged by Kingsley from January 1, 1990
through February 28, 1993. It is further
ORDERED that Mr . Allison's response must be received by the
Director, Division of Records and Reporting, 101 East Gaines
Street, Tallahassee, Florida 32399 - 0870, by the close of business
It is further
November 8, 1993
on
ORDERED that Mr. Allison's response must contain specific
It is further
allegations of fact and law.
ORDERED that Mr. Allison's opportunity to file a written
response shall constitute his opportunity to be heard prior to
final determination of noncompliance and assessment of penalty by
It is further
this Commission .
ORDER NO. PSC-93-1451-FOF-WS
DOCKET NO. 930028-WS
PAGE 4
ORDERED that Mr. Allison's failure to file a timely response
to this show cause order shall constitute an admission of the facts
alleged in the body of this Order and a waive r of any right to a
hearing.
18th
By ORDER of the Florida Public Service Commiss i on this ~ day
of October, 1993.
Reporting
( S E A L )
LK/MO
ORDER NO. PSC-93-1451-FOF-WS
DOCKET NO. 930028-WS
PAGE 5
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVI EW
The Florida Public Service Commission is r e quired by Section
any
of
parties
notify
to
Statutes,
Florida
120.59(4),
administrative hearing or judicial review of Commission orders that
is available under Sections 120.57 or 120.68, Florida Statutes, as
This notice
well as the procedures and time limits that apply .
should not be construed to mean all requests for an administrative
hearing or judicial review will be granted or result in the relie f
sought .
This order is preliminary, procedural or intermediate in
nature . Any person whose substantial interests are affected by the
action proposed by this order may file a petit ion for a formal
Florida'-25- 22 . 037 (1),
Rule
by
provided
as
proceeding,
Administrative Code , in the form provided by Rule 25-22.036(7) (a)
This petition must be
and (f ) , Florida Administrative Code.
received by the Director, Division of Records and Reporting, at his
office at 101 East Gaines Street, Tallahassee, Florida 32399-0870,
by the close of business on oct-ober -zz,--1-9'9-f"-- November 8, 1993 .
Failure to respond within the time set forth above shall
constitute an admission of all facts and a waiver of the right to
a hearing pursuanr to Rule 25-22 . 037(3), Florida Administrative
Code, and a default pursuant to Rule 25-22.037(4), Florida
Such default shall be effective on the day
Administrative Code.
subsequent to the above date.
If an adversely affected person fails to respond to this order
within the time prescribed above, that party may request judicial
review by the Flor ida Supreme Court in the case of any electric,
gas or telephone utility or by the First District Court of Appeal
in the case of a water or wastewater utility by filing a notice of
appeal with the Director, Division of Records and Reporting, and
filing a copy of the notice of appeal and the filing fee with the
This filing must be completed within thirty
appropriate court.
(30) days of the effective date of this order, pursuant to Rule
9.110, Florida Rules of Appellate Procedure.
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In Re: Request for Exemption
From Florida Public Service
Commission Regulation for
Provision of Water and
Wastewater Service in Clay
County by MEADOWLAND SHOPPING
CENTER.
) DOCKET NO. 930028 -WS
) ORDER NO. PSC-9 3-1451-FOF-WS
) ISSUED: October 5, 1993
)
)
)
)
_______________________________ )
The following Commissioners pa rticipated in the disposition of
this matter:
J. TERRY DEASON, Chairman
SUSAN F. CLARK
JULIA L. JOHNSON
ORDER TO SHOW CAUSE
BY THE COMMISSION:
On January 5, 1993, Mr. Virgil Allison applied for an
exemption from tnis Commission's jurisdiction for the provisio n of
water and wastewater service to tenants of the Meadowland Shopping
Center (Meadowland) in Duval Cou nty. Meadowland consists of four
approximately eight
separate buildings each consisting of
individually metered stores. Both water and wastewater service are
provided to Meadowland by Kingsley Service Company (Kingsley) , and
Mr. Allison resells it to the individual tenants.
Mr. Allison initially a pplied for an exemption from this
Commission ' s regulation pursuant to Secti on 367.022 ( 8) , Florida
Statutes. However, upon being advised that his facility would not
qualify for a reseller exemption because he was reselling service
at a rate which exceeded his purchase price, he ceased billing
separately for service and rolled the utility cost into the monthly
However, this Order concerns only an associated
rental charges.
complaint and not the merits of the exemption application.
Mr. Richard Adams, a former tenant of Mr. Allison, had
initially alerted this Commission to the existence of Mr. Allison's
Upon receipt of the application, we contacted Mr.
operation.
Allison and advised him t hat he would not qualify for an exemption
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CCT -5 :ri
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ORDER NO. PSC-93- 1451-FO F-WS
DOCKET NO. 930028-W S
PAGE 2
because his c harges were in exces s of those charged to h i m by
Additio nally, Mr. Allison was advised of Mr. Adams '
Kingsle y.
concern s regardi ng excessi ve billing and that the potent ial for a
Mr . Allison was not recepti ve to an informa l
refund existed .
In May, Mr. Adams filed a formal
settlem ent of this matter.
seeking a refund of excessi ve
sion
Commis
this
compla int with
of t he compla int and respond ed
advised
was
Allison
Mr.
charges .
Howeve r, Mr .
within the given time seeking clarifi cation .
questio ns
many
on
Allison 's respons e only request ed clarifi cation
, he
example
For
.
answers
the
knew
to which he appare ntly already
charged
he
rate
what
y,
Kingsle
by
charged
was
asked what rate he
Mr. Adams, and how much water Mr. Adams had used while one of his
custom ers.
Based upon Mr. Allison 's exempti on applica tion and informa tion
filed by Mr. Adams, Mr. Allison was reselli ng and billing
separat ely for water and wastew ater service at rates which exceede d
that o f the supplie r of water and wastew ater s ervice. Meadow land
was therefo re operati ng as a jurisdi ctiona l utility .
each
require s
Statute s,
Florida
367.031 ,
Section
zation
authori
of
cate
jurisdi ctional utility to obtain a certifi
Further , Section 367.081 (1), Florida
from this Commis sion.
may only charge rates and charges
utility
a
that
Statute s, mandate s
sion. Therefo re, Meadowla nd
commis
this
by
d
aporove
been
have
which
is in violati on of both statute s.
As part of the exempti on applica tion filed with this
Commis sion, Mr. Allison provide d 1992 billing informa tion for all
his tenants and provide d copies of h is bills from Kingsle y for
1992. Within his compla int, Mr. Adams provide d billing informa tion
Billing
for the entire period that he was Mr. Allison ' s tenant.
not
was
1992
than
other
for
tenants
inform ation for the other
g
relatin
tion
informa
billing
all
d
reviewe
have
We
provide d.
specifi cally to Mr. Adams' compla int.
During the period of April 1990 through August 1992, Mr. Adams
operate d a coin laundry at Meadowla nds . Based upon the nature of
his busines s, he consume d more water than the other busines ses in
During his tenancy , the combine d water and
the shoppin g center .
wastew ater rate billed by Kingsle y to the buildin g, in wh ich Mr.
Adams was one of eight tenants , consist ed of a qual cerly base
facilit y charge of $177.77 and a gallona ge charge of $1.92 per
Mr. Allison in turn billed Mr. Adams' laundry a
1, 000 gallons .
combine d water and wastew ater rate consist ing of a quarter ly base
ORDER NO . PSC- 93-1451- FOF-WS
DOCKET NO. 930028- WS
PAGE 3
facility charge of $108 . 96 with a gallonage charge of $3 . 25 per
1,000 gallons . Based upon the rate differential, the bill for the
laundry exceeded the bill from Kingsley for all eight t e nants .
Such a scenario is o bviously intended to generate revenues in
excess of the cost of service.
As previously noted , the laundry was the largest water user in
the shopping center. Based on this one tenant, which was the only
tenant for which all billing information was available , the
appropriate amount of the refund to Mr. Adams shall be $3,912.18.
Therefore, we find it appropriate to order Mr. Allison to show
cause, in writing, within 20 days why he should not be fined up to
$5 , 000 per day for operating his utility without a certificate in
violation of Section 367.031 and further be required to refund to
his tenants at Meadowland Shopping Center all revenues based upon
rates in excess of those charged by Kingsley from January 1, 1990
through February 28, 1993, the date in which he ceased charging
separately for water and wastewater service .
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Mr .
Virgil Allison , owner of Meadowland Shopping Center, in Duval
County , shall show cause, in writing, within 20 days of the
issuance of this Order, why he should not be fined $5,000 per day
for failure t o compl y with Section 367.031 , Florida Statutes and
ordered to refund Mr. Adams the amou nt of $3,912.18 and refund his
other tenan ts at Meadowland Shopping Center all revenues based upon
rates in excess of those charged by Kingsley from January 1, 1990
through February 28, 1993. It is further
ORDERED that Mr . Allison's response must be received by the
Director , Division of Records and Reporting, 101 East Gaines
Street, Tallahassee , Florida 32399-0870, by the close of business
It is further
on
ORDERED that Mr. Allison ' s response must contain specific
allegations of fact and law. It is further
ORDERED tha t Mr. Allison's opportunity to file a written
response shall constitute his opportunity to be heard prior to
final determination of noncompliance and assessment of penalty by
this Commission. It is fur ther
ORDER NO . PSC-93 - 1451- FOF-WS
DOCKET NO . 930028-WS
PAGE 4
ORDERED that Mr. Allison's failure to file a timely response
to this show cause order shall constitute an admission of the facts
alleged in the body of this Order and a waiver of any right to a
hearing.
By ORDER of the Florida Public Service Commission this 5th day
of October, 1993.
Reporting
( S E A L )
LK/MO
ORDER NO . PSC- 93-1451-FOF-WS
DOCKET NO. 930028-WS
PAGE 5
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL
REVI ~W
The Florida Public Service Commi ssion is required by Section
any
of
parties
notify
to
Statutes,
Florida
120 . 59(4),
administrative hearing or judicial review of Commission orders that
is available under Sections 120.57 or 120.68, Florida Statutes, as
This notice
well as the procedures and time limits that apply .
should not be construed to mean all requests for an administrative
hearing or judicial review will be granted or result in the relief
sought .
This order is prel iminary, procedural or intermediate in
nature. Any person whose substantial interests are affected by the
action proposed by this order may file a petiti on for a formal
Florida
25-22 . 037(1),
Rule
by
provided
as
proceeding,
Administrative Code, in the form provided by Rule 25-22.03 6(7) (a)
This petition must be
and (f), Florida Administrative Code.
received by the Director, Division of Records and Reporting, at his
office at 101 East Gaines Street, Tallahassee, Florida 32399-0870,
by the close of business on October 25. 1993.
Failure to respond within the time set forth above sha ll
constitute an admission of all facts and a waiver of the right to
a hearing pursuant: to Rule 25- 22.037 ( 3) , Florida Administrat ive
Code, and a default pursuant to Rule 25-22.037(4), Florida
Such default shall be effective on the day
Admin istrative Code .
d a te .
above
the
subsequent to
If an adversely affected person fails to respond to this order
within the time prescribed above , that party may request judicial
review by the Florida Supreme Court in the case of a ny electric,
gas or telephone utility or by the First District Court 'o f Appeal
in the case of a water or wastewater utility by filing a notice of
appeal with t h e Director, Division of Records and Reporting, and
fil ing a copy of the n otice of appeal and the fili ng fee with the
This filing must be completed within thirty
appropriate court .
(3 0) days of the effective date of this order, pursuant to Rule
9.110, Florida Rules of Appellate Procedure.