Fla. Admin. Code R. 25-30.4575
Current through Reg. 50, No. 235-239, December 10, 2024
Section 25-30.4575 - Operating Ratio Methodology(1) Under the operating ratio methodology, instead of calculating the utility's revenue requirement based on a rate of return on the utility's rate base, the revenue requirement includes the utility's operating expenses plus a margin of 12 percent of the utility's operation and maintenance expenses. For utilities that are resellers, purchased water and purchased wastewater expenses will be removed from operation and maintenance expense before the 12 percent margin is applied. The operating ratio adjustment shall be no more than $15,000.(2) In rate cases processed under rule 25-30.455, F.A.C, the Commission will use the operating ratio methodology to establish the utility's revenue requirement when: (a) The utility's rate base is no greater than 125% of operation and maintenance expenses; and(b) The use of the operating ratio methodology does not change the utility's qualification for a staff assisted rate case under subsection 25-30.455(1), F.A.C.Fla. Admin. Code Ann. R. 25-30.4575
Rulemaking Authority 367.0814(9) FS. Law Implemented 367.0814(9) FS.
Adopted by Florida Register Volume 45, Number 049, March 12, 2019 effective 3/28/2019.