1 - Public Service Commission

Aqua Utilities Florida, Inc.
Docket No. 100330-WS
AUF response to Audit Report -No. 10-252-1-1
Audit Finding No. 1:
ResDonse:
The transfer of the Breeze Hill water and wastewater systems was approved in Order No. PSC-
08-0533-FOF-WS, issued August 18,2008. In this order the Commission stated:
Pursuant to Section 367.071, F.S., we may set rate base in transfer dockets. Rate
base was last set for Breeze Hill at $68,257 and $45,552 for water and
wastewater, respectively, as of December 3 1,2001. The 2006 Breeze Hill annual
report reflects rate base, excluding working capital, of $55,861 and $41,853 for
water and wastewater, respectively.
In Order No. PSC-02-11 I4-PAA-WS, issued August 14,2002, the Commission established the
rate base for Breeze Hill Utility. Specifically the Commission stated:
Based on the foregoing, we find that the appropriate rate base balance for rate
setting purposes is $68,257 for the water system and $45,552 for the wastewater
system.
This amount included adjustments for non used and useful plant in the wastewater amount, and
working capital allowances for both the water and wastewater systems.
Please see Schedules Nos. 1-A and 1-B, pages 46 and 47, respectively, in Order No. PSC-02-
11 14-PAA-WS for the amount of plant in service, accumulated depreciation, contributions in aid
of construction and amortization of CIAC that was previously approved by the Commission.
AUF did obtain plant in service and depreciation schedules from the previous owner during the
processing of the transfer docket. However, subsequent to the Commission's order approving
the transfer, obtaining additional information was difficult. This was primarily due to the
previous owner's location in Canada. Numerous attempts were made to obtain any additional
documentation.
Unfortunately, AUF was informed that the prior owner had died and no further contact was
possible.
However, AUF has included the journal entry which shows the booking of Breeze Hill's assets
on AUF's books and records, as well as the detailed plant listing schedule used to book the rate
base for the transfer.
See attachments as well as the enclosed CD.