Florida Public Service Commission native order document 07092-2026

FILED 9/30/2026
DOCUMENT NO. 07092-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Application for original certificate of
authorization for water and wastewater service
in Volusia County, by Avalon Park Utilities
LLC.
DOCKET NO. 20260099-WS
ORDER NO. PSC-2026-0348-PAA-WS
ISSUED: September 30, 2026
The following Commissioners 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 GRANTING AVALON PARK UTILITIES, LLC’S
MOTION TO BIFURCATE AND GRANTING IN PART
AND DENYING IN PART ITS MOTION TO WAIVE RULES
BY THE COMMISSION:
NOTICE 	is 	hereby 	given by 	the 	Florida 	Public 	Service 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
On July 	1, 2026, Avalon Park 	Utilities, LLC (Avalon) 	filed an Application 	for Original
Certificate of Authorization for Water and Wastewater Service 	in Volusia County (Application).
Simultaneous 	with 	this 	filing, Avalon 	filed 	a Motion 	to 	Bifurcate 	and 	for Temporary Rule
Waiver 	(Motion). 	The 	proposed 	service 	area 	consists 	of approximately 	2,700 	acres 	and 	is
located within the 	city limits of the City of Daytona Beach. The property will be developed as a
mixed-use 	development 	and 	is 	initially 	anticipated 	to 	contain 	8,198 	residential 	Equivalent
Residential 	Connections (ERCs) and 	715 	commercial ERCs. 	It 	is 	anticipated 	that 	the 	water,
wastewater, and reuse/irrigation services will be needed on or before August 31, 2028.
The 	property proposed 	to be 	served by Avalon 	is owned and 	controlled by 	a 	limited
liability company 	created on May 	18, 2026. 	The 	sole 	shareholder 	of Avalon 	is Avalon Park
Group, 	a 	diversified 	family 	of companies 	engaged 	in 	master-plan community 	development,
technology, health care, and industrials.

ORDER NO. PSC-2026-0348-PAA-WS
DOCKET NO. 20260099-WS
PAGE 2
In its Motion, Avalon has requested a temporary waiver of portions of Rule 25-30.033,
F.A.C., that deal with setting initial rates and providing certain information about the facilities
necessary to provide water and wastewater service to the proposed service area. Avalon has also
requested that the initial rates and charges for water and wastewater service be established after
the certificates of authorization are granted, a process referred to as bifurcation. 	We have 90
days to grant or deny the rule waiver pursuant to Section 120.542(8), Florida Statutes (F.S.).
Thus, we have until September 29, 2026, to rule on the requests for rule waiver.
On July 30, 2026, Avalon’s initial application was found to be deficient. 	Responses to
the identified deficiencies are due on or before August 28, 2026. On August 10, 2026, the City
of Ormond Beach timely filed its comments objecting to Avalon’s request for rule waivers and
application for a certificate to provide water and wastewater service in Volusia County.
This order is limited to the question of whether the requested rule waivers should be
granted. The question of whether certificates for water and wastewater services should be
granted will be determined at a later date. 	We have jurisdiction pursuant to Sections 367.031,
367.045, 367.081, and 120.542, F.S.
DECISION
I. 	Legal Standard
Original Certificates
Under Section 367.031, F.S., a utility must obtain a certificate of authorization from the
Commission prior to being issued a permit by the Department of Environmental Protection for
the construction of a new water or wastewater facility or prior to being issued a consumptive use
or drilling permit by a water management district. Under Section 367.045(1), F.S., a utility
applying for an initial certificate of authorization must provide information supporting the ability
of the applicant to provide service, the area and facilities involved, the need for service in the
area involved, and the existence or nonexistence of service from other sources in or near the
requested 	service 	area. The 	utility 	is 	also 	required 	to 	file 	schedules 	showing 	all 	rates,
classifications, and charges for the service it proposes to provide. As discussed in greater detail
below, Rule 25-30.033, F.A.C., implements these statutes, requiring specific information
supporting the request for an original certificate and establishment of initial rates and charges.
Rule Waivers and Variances
Section 120.542, F.S., authorizes the Commission to grant variances or waivers to the
requirements of our rules where the person subject to said rules has demonstrated that the
underlying purpose of the statute has been or will be achieved by some other means, and that
strict application of the rules would cause the person substantial hardship or would violate
principles of fairness. “Substantial hardship” as defined in this section means demonstrated
economic, technological, legal, or other hardship.

ORDER NO. PSC-2026-0348-PAA-WS
DOCKET NO. 20260099-WS
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II. 	Avalon’s Motion for Temporary Rule Waiver
In its Motion Avalon has requested that it be allowed to temporarily waive providing the
documentation required by Rules 25-30.033(1)(j)2, and 25-30.033(1)(m) through (1)(q), F.A.C.,
until its development plan is finalized in the next four to six months. The rules that Avalon seeks
to temporarily waive can be divided into two groups: those concerning the facilities necessary to
provide the requested water and wastewater service, Rules 25-30.033(1)(j)2 and 25-30.033(1)(m)
through (1)(o), F.A.C.,1 and those related to setting initial rates and charges, Rules 25-
30.033(1)(p) and 25-30.033(1)(q), F.A.C. 2
Avalon argues that the information requested about the proposed facilities required by
Rules 25-30.033(1)(j)2, and 25-30.033(1)(m) through (1)(o), F.A.C., cannot be developed before
final plans for construction are approved by DEP. 	Since Section 367.031, F.S., requires
certificates from this Commission before DEP will issue construction permits, Avalon argues
that this inconsistency between the two statutes requires a temporary waiver of these facilities
rules until its plans can be finalized.
Additionally, Avalon states that it will not have a “clear picture” of what land will be
needed and what treatment facilities will be needed until “decisions are made about the
appropriate method for obtaining treated water and wastewater.”
Avalon states that at the time of filing it “knows of no plans by another utility to timely
and economically serve the proposed territory in Volusia County.” Avalon further states that it
has entered into a Planned Development Agreement (PDA) with the City of Daytona Beach
which states that this development as proposed is consistent with the City’s Comprehensive Plan.
It is Avalon’s position that the PDA allows Avalon the “options both to obtain bulk service, and
the construction of its own source and treatment facilities to provide service to the proposed
territory.” Avalon estimates that the information required by the rules of which treatment option
it will pursue will be available in the next four to six months or by no later than February 2027.
Based on the above, the substantial hardship Avalon alleges is its inability at this time to
develop a water and wastewater system plan. Without a plan that identifies the facilities that will
1 Rule 25-30.033(1)(j)2, F.A.C., directs that the applicant for an original certificate provide a detailed system map
showing the existing and proposed lines and treatment facilities, with the territory proposed to be served plotted
thereon, consistent with the legal description provided by Avalon. Rule 25-30.033(1)(m), F.A.C., requires
documentation of Avalon’s right to access and continued use of the land upon which treatment facilities will be
located. Rule 25-30.033(1)(n), F.A.C., requires a description of the separate capacities of the existing and proposed
lines and treatment facilities in terms of ERCs and gallons per day estimated demand per ERC for water and
wastewater and the basis for such estimate. Rule 25-30.033(1)(o), F.A.C., requires a description of the type of water
treatment, wastewater treatment, and method of effluent disposal.
2 Rule 30.033(1)(p), F.A.C., requires financial information for the proposed facilities, e.g., projected cost of the
systems and associated depreciation by year; projected contributions-in-aid-of-construction; projected capital
structure and methods of financing the operation of the utility until the utility reaches 80 percent of its design
capacity; and proposed annual operating expenses. Rule 30.033(1)(q), F.A.C., requires a tariff containing all rates,
classifications, charges, rules, and regulations which shall be consistent with Chapter 25-9, F.A.C, Form PSC 1010
(12/15), entitled “Water Tariff” and Form PSC 1011 (12/15), entitled “Wastewater Tariff”.

ORDER NO. PSC-2026-0348-PAA-WS
DOCKET NO. 20260099-WS
PAGE 4
be built, the financial and land use information requested cannot be provided. Without the
financial information requested, initial rates cannot be calculated.
Avalon states that it can provide the financial information in January 2027, which is
approximately 19 months before initial water, wastewater and reuse/irrigation services will be
provided on August 31, 2028. That being the case, Avalon argues that bifurcation of the
certification from initial rate setting in this instance does not harm the ratepayers and is
consistent with past Commission practice.3
III. 	Response by City of Ormond Beach
The City of Ormond Beach (Ormond) in its August 10, 2026, letter has objected to
Avalon’s request to waive these rules as well as Avalon’s request for issuance of certificates for
water and wastewater services. Ormond argues that it has the infrastructure and capacity to
provide bulk water and wastewater services for the vast majority of Avalon’s service area.
Further, Ormond states that it has engaged in the design, permitting, and construction of
significant utility infrastructure to meet the present and future phases of the Avalon project.
Additionally, Ormond argues that it has a Wholesale Water and Wastewater Service
Agreement and Second Amended Water and Sewer Service Area Agreement with Daytona
Beach to provide bulk potable water and wastewater treatment service to Daytona Beach for use
within Ormond’s Wholesale Service Area. 	Phase I of the Avalon project is primarily within
Ormond’s service area. Therefore, Ormond argues that Avalon must obtain Ormond’s consent to
operate a water and wastewater utility pursuant to these interlocal agreements. Ormond has not
given its consent at this time.
Finally, Ormond states that there is both a state and federal lawsuit4 involving the
interpretation and validity of the Wholesale Water and Wastewater Service Agreement and
Second Amended Water and Sewer Service Area Agreement relevant to this case.5 Interpretation
of those agreements will determine what type of water and wastewater facilities Avalon can
build in its service area. Based on the above, we conclude that Ormond is arguing that the
substantial hardship raised by Avalon to support the rule waivers is easily curable and a problem
of Avalon’s own making.
3 Order No. PSC-02-0179-FOF-WS, issued February 11, 2002, in Docket No 010859-WS, In re: Application for
original certificate to operate water and wastewater utility in Sumter County by North Sumter Utility Company,
LLC; Order No. PSC-05-0844-PAA-WS, issued August 18, 2005, in Docket No. 050192-WS, In re: Application for
certificates to provide water and wastewater service in Sumter County by Central Sumter Utility Company, LLC;
Order No. PSC-17-0059-PAA-WS, issued February 24, 2017, in Docket No. 160220-WS, In re: Application for
original water and wastewater certificates in Sumter County, by South Sumter Utility Company, LLC.
4 Avalon Park Daytona, LLC & Avalon Park Daytona Land Holding, LP v City of Ormond Beach, Florida & City of
Daytona Beach, Florida, Case No. 2024 13870 CICI (7th Jud. Cir. Volusia Cnty., FL); Avalon Park Daytona, LLC &
Avalon Park Daytona Land Holding, LP v. City of Ormond Beach, Florida, Case No. 6:26-cv-00658 (M.D. Fla.).
5 Since Ormond filed its letter objecting to Avalon’s application for certificates, Avalon has voluntarily withdrawn
its Volusia County lawsuit and Ormond Beach has voluntarily withdrawn its counter-petition against the City of
Daytona. The only remaining issue in the Volusia County case is Ormond’s request for attorney fees and costs from
Avalon.

ORDER NO. PSC-2026-0348-PAA-WS
DOCKET NO. 20260099-WS
PAGE 5
IV. 	Analysis
A. 	Purpose of the Underlying Statutes
The purpose of Section 367.031 and 367.045, F.S., is to ensure that a utility seeking an
original certificate has the financial and technical ability to provide service, that there is a need
for service in the proposed service area, to determine the existence or nonexistence of service
from other sources in proximity to the proposed service area, and to establish initial rates and
charges.
B. 	Waiver of Rules Requiring Facilities Information
Avalon has stated that it will have the information necessary to provide the detailed
financial and technical information required by Rules 25-30.033(1)(j)2, and 25-30.033(1)(m)
through (1)(o), F.A.C., within four to six months or no later than February 2027. The facilities
and land necessary to provide a distribution system for water service and/or collection system for
wastewater service are significantly less expensive than providing those facilities in addition to
constructing water and wastewater treatment facilities. Given the fact that there is an outstanding
court case involving the validity and/or applicability of the Wholesale Water and Wastewater
Service Agreement and Second Amended Water and Sewer Service Area Agreement it seems
improbable that Avalon will be able to provide a final, viable plan for service to the proposed
service area by February 2027. 	Without knowing if wholesale water and wastewater treatment
must be purchased by Avalon from Ormond to serve the project, the information required by the
facility-related rules can’t be provided. Without having information regarding the system map, a
description of the capacities of the proposed lines and treatment facilities, or proof of continued
access to the land,6 there is a lack of support for Avalon’s application. In other words, it appears
less that a rule waiver is needed, than that Avalon’s application may be premature.
Since the information for which waiver is requested is an essential part of deciding
whether a certificate application should be granted, we find that Avalon has not demonstrated
that the underlying purpose of Sections 367.031 and 367.045, F.S., will be met by temporarily
waiving Rules 25-30.033(1)(j)2, and 25-30.033(1)(m) through (1)(q), F.A.C.
C. 	Substantial Hardship
Waiver of Rules Requiring Facilities Information
By asking for a waiver of Rules 25-30.033(1)(j)2, and 25-30.033(1)(m) through (1)(q),
F.A.C., Avalon is essentially asking us to continue this certification case indefinitely until
Avalon can provide the information needed to support its request for an original certificate. Due
to the litigation discussed above, where the bulk provider of water and wastewater service is at
issue, Avalon cannot control the outcome of the litigation, nor can it predict the timeframe in
which the litigation will be resolved. Unlike the waiver cases cited by Avalon, this is not simply
6 In addition to being a requirement under the rule, a utility must demonstrate it owns the land or possesses the right
to continued use of the land upon which treatment facilities are located under Section 367.1213, F.S.

ORDER NO. PSC-2026-0348-PAA-WS
DOCKET NO. 20260099-WS
PAGE 6
a case where the utility does not have the blessing of DEP for its proposed facilities, this is an
instance in which Avalon does not even know what facilities it wishes to, or can legally, build.
Further, since Avalon does not anticipate providing service to its proposed service area before
August 31, 2028, there is more than sufficient time for Avalon to resolve the Ormond/Daytona
Beach service issues before pursuing certification.
In support of its request to waive these rules, Avalon relies on three decisions where the
Commission bifurcated application for an original certificate from setting initial rates: North
Sumter Utility Company, LLC, issued February 11, 2002; Central Sumter Utility Company, LLC,
issued August 18, 2005; and South Sumter Utility Company, LLC, issued February 24, 2017.
These proceedings are not applicable here. In each of these cases the utility provided detailed
information regarding the type of water and wastewater systems that it proposed to construct.7
Also, in each there were no objections to certification. Here Ormond Beach has objected and
stated that it can, and will, provide water and wastewater services to the proposed Avalon Phase I
development.
For these reasons, we find that Avalon’s request to waive Rules 25-30.033(1)(j)2, and 25-
30.033(1)(m) through (1)(o), F.A.C., requiring facilities information is hereby denied.
Waiver of Rules Relating to Initial Rates and Charges
With regard to waiving Rules 25-30.033(1)(p) and (q), F.A.C., delaying establishing rates
until the certificate is issued does not affect our ability to determine whether Avalon has the
technical and financial ability to provide service or whether there is a need for service in the
proposed territory. Therefore, we find that the requirements of Section 367.045, F.S., can be met
and the public interest can be served by temporarily waiving compliance with these rules.
Therefore, we find that Rules 25-30.033(1)(p) and (q), F.A.C., be temporarily waived and that
the certificate and rate making proceedings be bifurcated.
For the reasons stated above, Avalon’s Motion should be granted in part and denied in
part. 	We 	find 	that 	Avalon’s 	request 	to 	temporarily 	waive 	compliance 	with 	Rules 	25-
30.033(1)(j)2, 	and 	25-30.033(1)(m) 	through 	(1)(o), 	F.A.C., 	is 	denied 	and 	its 	request 	to
temporarily waive Rules 25-30.033(1)(p) and (q), F.A.C., is granted.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Avalon Park Utilities, LLC’s
Motion to Bifurcate is hereby granted and Motion for Temporary Rule Waiver is hereby granted
in part and denied in part as discussed in the body of this order. It is further
7 North Sumter Utility Company, LLC proposed to build two water plants comprised of four wells providing 2.8
million gallons per day and a wastewater plant of 1.125 mgd maximum month average daily flow with a total
capacity of 2.25 mgd MMADF. Central Sumter Utility Company, LLC proposed a water treatment plant with three
12-inch wells and wastewater treatment plant of 2.0 mgd providing 1.542 mgd maximum month average daily flow.
South Sumter Utility Company, LLC proposed constructing wells, sodium hypochlorite chlorination and a ground
water storage tank as well as a 1.0 mgd wastewater treatment plant.

ORDER NO. PSC-2026-0348-PAA-WS
DOCKET NO. 20260099- WS
PAGE 7
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 pending resolution of whether water and
wastewater certificates of service should be granted and the setting of initial rates and charges.
By ORDER of the Florida Public Service Commission this 30th day of September, 2026 	.
ADAM TEITEMAN)
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.
SBr

ORDER NO. PSC-2026-0348-PAA-WS
DOCKET NO. 20260099-WS
PAGE 8
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 October 21, 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.