Florida Public Service Commission native order document 01714-2026

FILED 3/23/2026
DOCUMENT NO. 01714-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Joint motion requesting Commission 	DOCKET NO. 2026001 5-WU
approval of settlement agreement by the Office ORDER NO. PSC-2026-0073-PAA-WU
of Public Counsel and Leighton Estates
Utilities, LLC. _
ISSUED: March 23, 2026
The following Comini ssioners participated in the disposition of this matter:
GABRIELLA PASSIDOMO SMITH, Chairman
GARY F. CLARK
MIKE LA ROSA
BOBBY PAYNE
ANA ORTEGA
NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING SETTLEMENT FOR POSSIBLE OVEREARNINGS BY
LEIGHTON ESTATES UTILITIES, LLC
BY THE COMMISSION:
NOTICE 	is hereby given by the Florida Public Service Commission (Commission) that
the action discussed herein 	is preliminary in nature and will become final unless a person whose
interests are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-
22.029, Florida Administrative Code (F.A.C.).
Background
Leighton Estates 	Utilities, LLC (Leighton Estates or Utility) 	is a Class C water 	utility
serving approximately 86 customers 	in Marion County, 	Florida. On December 22, 2022, we
authorized a 10.45 percent return on equity (ROE) with an authorized range of 9.45 percent 	to
11.45 percent and a rate of return of 6.83 	percent, 	as codified by Order No. PSC-2022-043 5-
PAA-WU. Based on the review of Leighton 	Estates’ 2024 Annual Report, our 	staff identified
potential overeamings with a reported rate of return of 7.82 percent and an achieved ROE of
20.03 percent.
On November 	21, 	2025, 	the 	Office of Public Counsel (OPC) 	filed a 	letter with us
outlining concerns of potential water and wastewater utilities overeaming, with Leighton Estates
being the only utility requiring a reduction. On December 	12, 2025, OPC and Commission staff
held a conference call to discuss the possible overeamings of Leighton Estates and other utilities.
On December 22, 2025, the owner of Leighton Estates, Mike Smallridge, reached out to staff and
inquired about a voluntary rate reduction and a refund to customers. Leighton Estates and OPC
(collectively known 	as 	the 	Parties) conducted informal meetings 	to analyze 	the 	financial 	data
provided by 	Leighton 	Estates and 	to 	determine 	the 	appropriate 	disposition of 	the 	potential
overeamings. On January 29, 2026, the Parties filed their Joint Motion Requesting Commission

ORDER NO. PSC-2026-0073-PAA-WU
DOCKET NO. 20260015-WU
PAGE 2
Approval of Settlement Agreement (Joint Motion) to resolve the potential overearnings and to
avert future overearnings.
This Order grants the Parties’ motion and approves the Parties’ Settlement Agreement.
The Joint Motion and Settlement Agreement are attached as Attachment A. We have jurisdiction
pursuant to Sections 367.081, 367.082, and 367.121, Florida Statutes.
Decision
As previously stated, our staff identified possible overearnings based upon a review of
Leighton Estates’ 2024 Annual Report. On January 29, 2026, the Parties filed the Joint Motion to
resolve the disposition of ongoing overearnings. Leighton Estates agreed to reduce its rates by
11.60 percent to ensure it will remain within range of its ROE. Furthermore, Leighton Estates
agreed to refund customers 11.60 percent of water revenues billed from January 1, 2026, until
the effective date of the rate reduction. The refund credit will be based upon each individual
customer’s billed amounts from January 1, 2026, until the effective date of the rate reduction,
and will be made pursuant to Rule 25-30.360, F.A.C.
In keeping with the our long-standing policy and practice of encouraging parties to settle
issues whenever possible, we hereby grant the Joint Motion and approve the Settlement
Agreement by the Parties. The settlement provides protections for Leighton Estates’ customers
for possible overearnings in subsequent years. We note that this is consistent with our past
decisions regarding possible overearnings.1 Schedule No. 1 reflects the Utility’s existing rates
and our approved rates per the Utility’s settlement proposal. Commission staff will continue to
monitor the earnings of the Utility, and if any subsequent overearnings are identified, our staff
may open a formal earnings investigation.
The proposed Settlement Agreement adequately addresses the potential overearnings
staff identified during its ongoing earnings surveillance activities. As outlined in the proposed
Settlement Agreement, Leighton Estates shall reduce its rates by 11.60 percent. Additionally,
Leighton Estates shall refund customers 11.60 percent of water revenues billed from January 1,
2026, until the effective date of the rate reduction. The refund shall be made pursuant to Rule 25-
30.360, F.A.C. The Utility shall file a proposed customer notice reflecting our decision within 15
days of our vote. The approved rates shall be effective for service rendered on or after the
stamped approval date of the tariff sheets pursuant to Rule 25-30.475(1), F.A.C. In addition, the
approved rates shall not be implemented until our staff has approved the proposed customer
notice and the notice has been received by the customers. The Utility shall provide proof of the
date notice was given within 10 days of the date of the notice.
Based on the foregoing, it is
1 Order No. PSC-15-0173-PAA-WS, issued May 5, 2015, in Docket No. 20150069-WS, In re: Settlement proposal
for possible overearnings by Southlake Utilities, Inc. in Lake County.

ORDER NO. PSC-2026-0073-PAA-WU
DOCKET NO. 20260015-WU
PAGE 3
ORDERED by the Florida Public Service Commission that the Joint Motion Requesting
Commission Approval of Settlement Agreement is hereby granted and the proposed Settlement
Agreement is hereby approved. It is further
ORDERED that Leighton Estates Utility, LLC, shall reduce its rates by 11.60 percent.
The approved rates shall be effective for service rendered on or after the stamped approval date
of the tariff sheets pursuant to Rule 25-30.475(1), F.A.C. It is further
ORDERED that Leighton Estates Utility, LLC, shall refund customers 11.60 percent of
water revenues billed from January 1, 2026, until the effective date of the rate reduction. The
refund shall be made pursuant to Rule 25-30.360, F.A.C. It is further
ORDERED that the Utility shall provide Commission staff with a proposed customer
notice of the approved rates by March 18, 2026, and shall provide proof of the date that notice
was given within 10 days of the date of the notice. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto. It
is further
ORDERED that this docket shall remain open to allow staff to verify completion of the
refunds ordered above. Once Commission staff has verified that the refunds have been made in
accordance with Rule 25-30.360, F.A.C., the docket shall be closed administratively.

ORDER NO. PSC-2026-0073-PAA-WU
DOCKET NO. 20260015-WU
PAGE 4
By ORDER of the Florida Public Service Commission this 23rd day of March, 2026 	.
ADAM T
Commission Clerk
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850)413-6770
www.floridapsc.com
Copies 	furnished: A copy of 	this document 	is
provided 	to 	the 	parties of record 	at 	the time of
issuance and, if applicable, interested persons.
MRT

ORDER NO. PSC-2026-0073-PAA-WU
DOCKET NO. 20260015-WU
PAGE 5
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 120.569(1), Florida
Statutes, to notify parties of any administrative hearing that is available under Section 120.57,
Florida Statutes, as well as the procedures and time limits that apply. This notice should not be
construed to mean all requests for an administrative hearing will be granted or result in the relief
sought.
Mediation may be available on a case-by-case basis. 	If mediation is conducted, it does
not affect a substantially interested person's right to a hearing.
The action proposed herein is preliminary in nature. Any person whose substantial
interests are affected by the action proposed by this order may file a petition for a formal
proceeding, in the form provided by Rule 28-106.201, Florida Administrative Code. 	This
petition must be received by the Office of Commission Clerk, 2540 Shumard Oak Boulevard,
Tallahassee, Florida 32399-0850, by the close of business on April 13, 2026.
In the absence of such a petition, this order shall become final and effective upon the
issuance of a Consummating Order.
Any objection or protest filed in this/these docket(s) before the issuance date of this order
is considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest period.

ORDER NO. PSC-2026-0073-PAA-WU 	Schedule No. 1
DOCKET NO. 20260015-WU 	Page 1 of 1
PAGE 6
LEIGHTON ESTATES UTILITIES, LLC 	SCHEDULE NO. 1
MONTHLY WATER RATES 	DOCKET NO. 20260015-WU
UTILITY 	COMMISSION
CURRENT 	APPROVED
RATES 	RATES
Residential and General Service
Base Facility Charge by Meter Size
5/8"X 3/4" 	$24.27 	$21.45
3/4" 	$36.41 	$32.18
1" 	$60.68 	$53.63
1-1/2" 	$121.35 	$107.25
2" 	$194.16 	$171.60
3" 	$388.32 	$343.20
4" 	$606.75 	$536.25
6" 	$1,213.50 	$1,072.50
Charge per 1,000 gallons - Residential Service
0 - 4,000 gallons 	$11.03 	$9.75
Over 4,000 gallons 	$13.79 	$12.19
Charge per 1,000 gallons - General Service 	$11.28 	$9.97
Typical Residential 5/8" x 3/4" Meter Bill Comparison
5,000 Gallons 	$82.18 	$72.64
10,000 Gallons 	$151.13 	$133.59
15,000 Gallons 	$220.08 	$194.54

ORDER NO. PSC-2026-0073-PAA-WU 	Attachment A
DOCKET NO. 20260015-WU 	Page 1 of 3
PAGE 7
Exhibit “A”
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Disposition of 2026 Overeamings for 	Docket No. 2026 _
Leighton Estates Utilities, LLC:
Filed: January 29, 2026
_ 	I
SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT is made and entered into this 29th day of January,
2026, by and between Leighton Estates Utilities, LLC. (hereafter referred to as “Leighton”), and
the Office of Public Counsel (“OPC”), on behalf of the Citizens of the State of Florida (“Citizens")
and customers of Leighton (hereafter, “Parties").
WITNESSETH
WHEREAS, the OPC identified possible 2025 overeamings based upon the review of the
2024 Annual Report of Leighton; 1
WHEREAS, on December 12, 2025, a conference call meeting between the staff of the
Florida Public Service Commission (“Commission” or “FPSC”) and the OPC were held to discuss
the possible overeamings of Leighton and other utilities;
WHEREAS, on January 8, 2026, staff of the FPSC inquired whether Leighton had reached
out to the OPC regarding the amount of overeamings and a voluntary rate reduction;
WHEREAS, on January 20-21, 2026, the Parties conducted further discussions and
evaluation of additional data provided by Leighton to OPC on such overeamings;
1 See Document No. 13204-2025 -OPC (Fletcher)- Letter dated 11/21/25, providing summary of review of possible
WAW overtiming for reporting year 2024 for Kirby D. Morgan, Inc., and Lake Yale Utilities, LLC for wastewater,
and Leighton Estates Utilities, LLC, and Ni Florida, Inc. for water.
1

ORDER NO. PSC-2026-0073-PAA-WU 	Attachment A
DOCKET NO. 20260015-WU 	Page 2 of 3
PAGE 8
WHEREAS, the Parties to this Agreement have undertaken in good faith to reasonably and
atnicably resolve the issues raised in this proceeding so as to maintain a degree of fairness, stability
and predictability with respect to customer bills;
1 WHEREAS, the Parties have entered into .this Settlement Agreement in compromise of
positions that could be taken in accord with their rights and interests under Chapters 350 and 367,
Florida Statutes, as applicable, and, as a part of the negotiated exchange of consideration among
the parties to this agreement, each has agreed to concessions to the others with the expectation that
, 	all provisions of this Settlement Agreement will be enforced by the Commission as to all matters
addressed herein with respect to all parties regardless of whether a court ultimately determines
such matters to reflect Commission policy, upon acceptance of the agreement as provided herein
and upon approval in the public interest; and
HOW THEREFORE, the parties agree to the following:
I
I. 	Leighton EstatesJUfitities, LLC : 	Leighton Estate Utilities, LLC (Leighton) agrees to
, 	reduce its base facility charge and gallonsge charges by 11.60% Jn addition, Leighton also agrees
to refund via credit on its customers’ accounts 	1 1.60% of water revenues billed from January 1,
2026 until the effective date of the rate reduction. The refunds shall be made pursuant to Rule 25-
30.360(3), Florida Administrative Code. This refund credit shall be based upon each individual
customer's billed amounts from January 	1, 2026 until (he effective date of the rate reduction.
2. 	In keeping with the Commission’s lang-standing policy and practice of encouraging parties
to settle issues whenever possible, the Parties submit this Settlement Agreement for review and
approval. The Parties agree that this Settlement Agreement is in the public interest. The provisions
of this Settlement Agreement are contingent on approval of this Settlement Agreement in 	its
1 entirety by the Commission without modification. Ths Parties further agree that they will support
2

ORDER NO. PSC-2026-0073-PAA-WU 	Attachment A
DOCKET NO. 20260015-WU 	Page 3 of 3
PAGE 9
this Settlement Agreement and will not request or support any order, relief, outcome, or result in
conflict with the terms of this Settlement Agreement in any administrative or judicial proceeding
relating to, reviewing, or challenging the establishment, approval, adoption, or implementation of
this Settlement Agreement or the subject matter hereof. No Party will assert in any proceeding
before the Commission that this Settlement Agreement nor any of the terms herein shall have any
precedential value nor may it be used in any other proceeding. To the extent a dispute arises among
the parties about the provisions, interpretation, or application of this agreement, the parties agree
to meet and confer in an effort to resolve the dispute. To the extent that the Parties cannot resolve
any dispute, the matter may be submitted to the Commission for resolution. Approval of this
Settlement Agreement in its entirety will resolve all matters and issues discussed herein pursuant
to and in accordance with Section 120.57(4), Florida Statutes. This docket should be closed
administratively after Commission staff verifies the revised tariff sheets, customer notices have
been mailed, and refunds have been made.
IN WITNESS WHEREOF, the Parties evidence their acceptance and agreement with the
provisions of this Settlement Agreement by their signature.
OFFICE OF PUBLIC COUNSEL
Charles Rehwinkel;
Deputy Public Counsel
Attorney for the Citizens
of the State of Florida
LEIGHTON ESTATES UTILITIES
Date:
Mike Smallridge;
Managing Member
Leighton Estates Utilities, LLC
3