Florida Public Service Commission native order document 05429-2026

FILED 8/24/2026
DOCUMENT NO. 05429-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Joint motion to approve settlement
agreement regarding disposition of 2026
overeamings for West Lakeland, by Office of
Public Counsel and West Lakeland
Wastewater, LLC._
DOCKET NO. 20260097-SU
ORDER NO. PSC-2026-0295-PAA-SU
ISSUED: August 24, 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 MOTION TO APPROVE 2026
WEST LAKELAND SETTLEMENT AGREEMENT
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 fonnal proceeding, pursuant 	to Rule 	25-22.029,
Florida Administrative Code (F.A.C.).
Background
West Lakeland Wastewater, LLC (West Lakeland or Utility) 	is a Class C utility providing
wastewater 	service 	to 	approximately 317 	residential 	and 	general 	service 	customers 	in 	Polk
County, 	Florida. On July 22, 2025, we authorized an 	11.24 percent return on equity (ROE) 	for
the Utility with an authorized range of 10.24 percent to 12.24 percent and a rate of return of 5.92
percent. 1 Based 	on 	a 	review 	of West 	Lakeland’s 	2025 	Annual 	Report, 	Commission 	staff
identified possible overeamings with a reported earned rate of return of 45.30 percent. On April
24, 	2026, 	the 	Office 	of 	Public 	Counsel (OPC) 	filed 	a 	letter 	with 	us 	outlining 	concerns 	of
potential 	overeamings 	by 	several 	water 	and 	wastewater 	utilities 	and 	asserting 	that 	West
Lakeland’s overeamings required a rate reduction. On May 	1, 2026, Mike Smallridge, the owner
of West Lakeland, consented 	to our jurisdiction over revenues which exceeded the high end of
West Lakeland’s return on equity on a prospective basis.
1Order No. PSC-2025-0284-PAA-SU, issued July 22, 2025, in Docket No. 202401 05-SU, In 	re: Application for
staff-assisted rate case in Polk County, by West Lakeland Wastewater, LLC.

ORDER NO. PSC-2026-0295-PAA-SU
DOCKET NO. 20260097-SU
PAGE 2
West Lakeland and OPC engaged in discussions and evaluations of the potential
overearnings. On June 30, 2026, West Lakeland and OPC executed the “West Lakeland
Settlement Agreement” (Settlement Agreement) as a proposed resolution of past overearnings
and safeguard against future overearnings. Also on June 30, 2026, OPC filed with us a Motion to
Approve 2026 West Lakeland Settlement Agreement.
A true and correct copy of the Settlement Agreement is appended to this Order as
Attachment A. Attachment 1 to the Settlement Agreement shows the Utility’s existing rates and
the reduced rates per the Agreement.
We have jurisdiction over this proceeding pursuant to Sections 367.081, 367.082, and
367.121, Florida Statutes.
Decision
In its review of West Lakeland’s 2025 Annual Report, Commission staff identified
possible overearnings by the Utility. On June 30, 2026, West Lakeland and OPC entered the
Settlement Agreement to address all issues related to identified overearnings. Pursuant to the
terms of the Settlement Agreement, West Lakeland shall reduce its rates by 2.65 percent to
ensure it will remain within its authorized range. West Lakeland further agreed to refund
customers 2.65 percent of wastewater revenues billed from May 1, 2026, until the effective date
of the rate reduction. The refund credit shall be based upon each individual customer’s billed
amounts from May 1, 2026, until the effective date of the rate reduction, and shall be made
pursuant to Rule 25-30.360, F.A.C. Additionally, West Lakeland agreed to withdraw the price
index adjustment application filed April 1, 2026, and to not request a price index adjustment in
2026.
On June 30, 3036, OPC filed a Motion to Approve 2026 West Lakeland Settlement
Agreement. Based upon a full review of the record before us, we grant the Motion and approve
the Settlement Agreement. We find that the Settlement Agreement provides protections for West
Lakeland’s customers for possible overearnings in subsequent years and is consistent with prior
decisions we have made regarding overearnings. We also direct Commission staff to continue to
monitor the earnings of the Utility, and if any subsequent overearnings are identified, to open a
formal earnings investigation.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that the Motion to Approve 2026
West Lakeland Settlement Agreement is granted. It is further
ORDERED that the West Lakeland Settlement Agreement is approved. It is further
ORDERED that West Lakeland shall refund customers 2.65 percent of wastewater
revenues billed from May 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 this Order. The approved rates shall be effective for

ORDER NO. PSC-2026-0295-PAA-SU
DOCKET NO. 20260097-SU
PAGE 3
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 Commission
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. 	It is further
ORDERED 	that 	West 	Lakeland 	shall 	withdraw 	its 	application 	for 	a 	price 	index
adjustment and shall not request a price index adjustment in 2026. 	It 	is further
ORDERED 	that the provisions of this Order, issued 	as proposed agency 	action, 	shall be
placed into monitoring 	status 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 	in the event 	this Order becomes 	final, 	this docket 	shall be placed 	into
monitoring status.
ORDERED 	that this docket 	shall be administratively closed by 	staff after verifying 	that
the Utility has completed the refunds in accordance with Rule 25-30.360, F.A.C.
By ORDER of the Florida Public Service Commission this 24th day of August , 2026 	.
ADAM WITZMAN
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.
SPS

ORDER NO. PSC-2026-0295-PAA-SU
DOCKET NO. 20260097-SU
PAGE 4
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 September 14, 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-2026-0295-PAA-SU 	Attachment A
DOCKET NO. 20260097-SU
PAGE 5
Exhibit A
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In 	re: Disposition of 2026 Overeamings for DOCKET NO.: 20260000
West Lakeland Wastewater, LLC.
_ 	___ 	FILED: 	June 30, 2026
WEST LAKELAND SETTLEMENT AGREEMENT
THIS SETTLEMENT AGREEMENT is made and entered into this 30 lh day of June, 2026,
> by and between West Lakeland Wastewater LLC. (hereafter referred to as “West Lakeland”), and
the Office of Public Counsel (“OPC”), on behalf of the Citizens of the State of Florida (“Citizens”)
and customers of West Lakeland (hereafter, “Parties”).
Recitals
WHEREAS, the OPC identified possible 2026 overeamings based upon the review of the
2025 Annual Reports of West Lakeland; 1
WHEREAS, on May 	1, 2026, West Lakeland consented to the Commission’s jurisdiction
over revenues which exceed the high end of West Lakeland’s return on equity on a prospective
basis; 2
WHEREAS, the Parties have conducted further discussions and evaluation of additional
। data provided by West Lakeland to OPC on such overeamings;
WHEREAS, the Parties to this Agreement have undertaken in good faith to reasonably and
amicably resolve the issues raised in this proceeding so as to maintain a degree of fairness, stability
and predictability with respect to customer bills;
WHEREAS, the Parties have entered into this Settlement Agreement in compromise of
1See Document No. WU937-25-AR; See also Document No. 02392-2026 - OPC (Fletcher) - Letter dated April 24,
2026, providing summary of review of possible WAW overeaming for reporting year 2025 for A Utility Inc., Citrus
Waterworks, Inc., East Marion Utilities, LLC., Environmental Protection Systems of Pine Island, Inc., Keen Sales,
Rentals and Utilities, Inc., Kirby D. Morgan, Inc., Lake Yale Utilities, LLC., Mcleod Gardens Utilities, LLC., and
West Lakeland Wastewater, LLC.
2 Document No. 02588-2026 - West Lakeland (Smallridge) - Letter dated May 1,2026, providing acknowledgement
of an informal investigation into potential overeamings of West Lakeland Wastewater, LLC.
1

ORDER NO. PSC-2026-0295-PAA-SU 	Attachment A
DOCKET NO. 20260097-SU
PAGE 6
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
NOW, THEREFORE, 	in consideration of the foregoing, and 	the mutual covenants
contained 	herein, which 	the 	Parties agree and acknowledge 	constitute good and valuable
consideration, the Parties hereby stipulate and agree as follows:
1. 	West Lakeland Waste water, LLC (West Lakeland) agrees to reduce its base facility charge
and gallonage charges by 2.65%, as reflected in Attachment 	1. In addition, West Lakeland also
agrees to refund via credit on its customers’ accounts 2.65% of wastewater revenues billed from
May 	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 May 	1, 2026, 	until the effective date of the rate
reduction. 	Further, West Lakeland will withdraw' the application for a price index adjustment,
( filed April 	1, 2026, and will further forego requesting a price index adjustment in 2026.
2. 	In keeping with the Commission’s long-standing policy and practice of encouraging parties
to settle issues whenever reasonable and possible, the Parties submit this Settlement Agreement
for review and approval. The Parties agree that this Settlement Agreement is in the public interest.
3. 	The provisions of this Settlement Agreement are contingent on approval of this Settlement
Agreement in its entirety by the Commission without modification. The Parties further agree that
2

ORDER NO. PSC-2026-0295-PAA-SU 	Attachment A
DOCKET NO. 20260097-SU
PAGE 7
they will support 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.
WEST L AKEL AN^J^ASTE WATER, LLC
Bv:
Date: 	[¿( 	_
Mike Smallridge
Managing Member
West Lakeland Wastewater, LLC
5911 Trouble Creek Road
New Port Richey, FL 34652-5128
OFFICE OF PUBLIC CQUNSEL
By: 	_
Date: 	_
Walt Trierweiler
Public Counsel
111 W. Madison Street, Suite 812
Tallahassee, FL 32399-1400
3

ORDER NO. PSC-2026-0295-PAA-SU 	Attachment A
DOCKET NO. 20260097-SU
PAGE 8
Attachment 1
Description
Current
Rates
2.65%
Reduction
Reduced
Rates
Residential
Base Facility Charge - All Meter Sizes
Charge per 1,000 gallons (6,000-gallon cap)
General Service
Base Facility Charge by Meter Size
5/8" x 3/4"
3/4"
1"
1-1/2"
2"
3"
4"
6"
8"
Charge per 1,000 gallons
Typical Residential 5/8" x 3/4" Meter Rill Comparison
$28.75
$8.66
$28.75
$43.13
$71.88
$143.75
$230.00
$460.00
$718.75
$1,437.50
$2,300.00
$10.40
($0.76)
($0.23)
($0.76)
($1.14)
($1.90)
($3.81)
($6.10)
($12.19)
($19.05)
($38.09)
($60.95)
($0.28)
$27.99
$8.43
$27.99
$41.99
$69.98
$139.94
$223.91
$447.81
$699.70
$1,399.41
$2,239.05
$10.12
3,000 Gallons
6,000 Gallons
$54.73
$80.71
($1.45)
($2.14)
$53.28
$78.57