FPSC Establishes New Water Rates for Water Oak Utility in Lake County

Water Oak filed its application with the FPSC in June 2025, requesting a rate adjustment to support continued operation of the utility system, address aging infrastructure, and maintain reliable water service for customers.

"The Commission's action today reflects the value of customer participation in our decision-making process," said Chairman Smith. "After carefully considering customer feedback and staff's recommendations, the Commission approved rates that support the continued operation of the Utility while incorporating modifications that address concerns raised about its quality of service and management."

As part of the rate review process, the FPSC held a virtual customer meeting allowing customers to provide comments about Water Oak's rate request and its quality of service. The FPSC also received more than 300 written customer comments and heard additional public comments during its April and June 2026 Commission Conferences.

The item was first considered at the April 7, 2026, Commission Conference. After hearing additional customer comments, Commissioners deferred the matter to the June conference to gather additional information from Water Oak before reaching a final decision.

Following its review, the FPSC approved staff's recommended revenue requirement with modifications to address concerns raised during the meeting. The Commission reduced Water Oak's return on equity and adjusted certain operating expenses, including Salaries and Wages and Professional Contractual Services, based on its assessment of the Utility's management practices and overall quality of service.

The new rates are designed to support necessary improvements to its water system and allow Water Oak to recover prudently incurred operating expenses associated with providing reliable water service.

The new rates will take effect after customers receive an official FPSC approved notice from Water Oak.

Water Oak provides water service to 1,265 residential customers and 50 general service customers in Lake County. Water Oak's last full rate case established rates in 1986.