FPSC Authorizes Rate Adjustments and Service Improvements for Grenelefe Utility

The Florida Public Service Commission (FPSC) today voted to establish revised water and wastewater rates for customers of Grenelefe Utility in Polk County. The Commission's decision follows a comprehensive review of the utility's financial condition, infrastructure needs, service quality, and extensive customer input.

Grenelefe Utility's rates were last set in 2011. Since that time, the utility has experienced significant increases in operating costs, and portions of its water and wastewater systems have reached or exceeded their useful lives. Today, the Commission recognized the need to upgrade the utility's aging system infrastructure, but also found the performance of the utility's management to be concerning.

"While the Commission recognizes the need for system upgrades, it also recognizes the need for stronger managerial oversight," said Chairman Smith. "Transparency and accountability are essential, which is why the Commission voted today to keep the docket open to monitor the progress of the utility's responsiveness, quality of service, and overall performance."

The new rates will take effect once revised tariffs are filed and customers are properly notified. The approved rates reflect only those investments and expenses the Commission found to be prudent, necessary, and adequately documented.

The rate adjustments are driven primarily by:

• Targeted infrastructure improvements to address aging equipment, including replacement of obsolete water meters, rehabilitation of storage tanks and wells, and refurbishment of wastewater lift stations; and
• Correction of historically low rates that no longer reflected the true cost of providing service.

Grenelefe Utility provides water and wastewater service to approximately 1,400 customers in Polk County.