Florida Public Service Commission native order document 07379-2026

FILED 10/16/2026
DOCUMENT NO. 07379-2026
FPSC 	- COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Application for a limited proceeding to
increase wastewater rates and service
availability charges in Polk County, by NC
Real Estate Projects, LLC d/b/a Grenelefe
Utility._
DOCKET NO. 20260098-WS
ORDER NO. PSC-2026-0360-PAA-WS
ISSUED: October 	16, 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 PETITION FOR VARIANCE AND WAIVER
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, NC Real 	Estate 	Projects, LLC 	d/b/a Grenelefe 	Utility 	(Grenelefe 	or
Utility) 	filed an 	Application 	for 	limited proceeding 	to 	increase wastewater 	rates and 	service
availability charges (Application). Grenelefe 	is a Class B water and wastewater utility providing
service 	to approximately 	1,400 water and wastewater customers 	in Polk 	County. The 	Utility’s
service 	territory 	is 	located 	within 	the 	Southwest 	Florida 	Water 	Management 	District
(SWFWMD). The Utility states in 	its Application that the purpose of the limited proceeding 	is to
recover the costs associated with the rebuilding of its wastewater treatment plant (WWTP).
In 	a 	staff assisted 	rate 	case (SARC) 	filed 	in 2025, 	the 	Utility 	sought over $16 	million
dollars 	in 	increased 	rates and 	charges 	to pay 	for 	the 	rebuild of the WWTP. We 	denied 	the
Utility’s request on the following grounds:

ORDER NO. PSC-2026-0360-PAA-WS
DOCKET NO. 20260098-WS
PAGE 2
We recognize that the Utility must meet applicable BMAP [Basin Area
Management Plan] guidelines and that the DEP [Department of Environmental
Protection] has established deadlines for compliance. Despite these requirements,
Grenelefe is currently only in the initial bidding phase of this project, total project
cost is still uncertain, and the Utility’s estimated completion date for the project is
beyond the statutory 24-month timeframe. Based on these facts, we are not
approving this project for cost recovery at this time. We recognize the DEP
requirements set forth in the AO [Administrative Order] and the statutory BMAP
requirements.
Based on the Utility’s responses to our staff’s data requests, it remains
unclear what portion of the proposed WWTP modifications is necessary to
achieve compliance with the DEP’s BMAP regulations. As stated above, DEP is
not directly requiring the Utility to increase the permitted capacity of its WWTP;
therefore, not all costs associated with the proposed project appear to be
compliance-driven. Without a clear delineation of the specific improvements and
corresponding costs required to meet the DEP’s BMAP regulations, we cannot
approve the pro forma project at this time. We cannot consider cost recovery for
the project until the Utility provides a more detailed plan that clearly identifies the
compliance-related 	project 	components 	and 	associated 	costs. 	Our 	denial 	is
without prejudice to Grenelefe filing a request for cost recovery of this project at
an appropriate time when total project cost is known, the in-service date is
established, and any material, related uncertainties are resolved. 1
Grenelefe represents in its Application that the uncertainties listed in the underscored
sentence above are resolved and its request is now ripe for consideration in a limited proceeding.
We have broad authority to conduct limited proceedings under Section 367.0822(1),
Florida Statutes (F.S.). Rule 25-30.445, F.A.C., which we adopted to implement Section
367.0822, F.S., restricts the ability of water and wastewater systems to use the limited
proceeding process. Rule 25-30.445(6), F.A.C., provides that a limited proceeding will not be
allowed if:
(a) The utility’s filing includes more than six separate projects for which recovery
is sought. Corresponding adjustments for a given project are not subject to the
above limitation;
(b) The requested rate increase exceeds 30 percent;
(c) The utility has not had a rate case within seven years of the date the petition
for limited proceeding is filed with the Commission; or
(d) The limited proceeding is filed as the result of the complete elimination of
either the water or wastewater treatment process.
1 Order No. PSC-2026-0054-PAA-WS, issued February 25, 2026, in Docket No. 20250023-WS, In re: Application
for staff-assisted rate case in Polk County, by NC Real Estate Projects, LLC d/b/a Grenelefe Utility. at p.18
(emphasis added).

ORDER NO. PSC-2026-0360-PAA-WS
DOCKET NO. 20260098-WS
PAGE 3
Grenelefe acknowledges that its request would result in a rate increase of greater than 30
percent. Accordingly, on July 20, 2026, Grenelefe filed a petition for variance and waiver
(Petition) of Rule 25-30.445(6)(b), F.A.C.
Florida law allows agencies to waive or provide other relief (variances) to persons subject
to regulation where the strict application of uniformly applicable rule requirements leads to
“unreasonable, unfair, and unintended results in particular instances.” Section 120.542(1), F.S.
Variances and waivers shall be granted when the person subject to the rule demonstrates that the
purpose of the underlying statute will be or has been achieved by other means by the person and
when application of a rule would create a substantial hardship or would violate principles of
fairness. Section 120.542(2), F.S.
On July 29, 2026, we filed a Florida Administrative Register notice acknowledging
receipt of Grenelefe’s Petition. The time for filing comments, provided by Rule 28-104.003,
F.A.C., expired on August 12, 2026. No comments as to Grenelefe’s Petition were received.
This order addresses Grenelefe’s Petition only. We have jurisdiction under Sections
120.542, 367.0822, and 367.121, F.S.
Analysis and Decision
In its Application, Grenelefe states that this proceeding is being requested to recover the
costs associated with the rebuilding of its wastewater treatment plant by increases in wastewater
rates and in service availability charges. Grenelefe asserts that the rebuild is being required by
the Florida Department of Environmental Protection (DEP). Grenelefe further states that because
this request is being made in order to recover costs required by a governmental or regulatory
agency, 	these 	costs 	represent 	“Environmental 	Compliance 	Costs” 	as 	defined 	in 	Section
367.081(2)(a)2c, F.S.
Grenelefe argues that the intent of Rule 25-30.445(6)(b), F.A.C., is to prevent substantial
increases in rates without a thorough review of all aspects of utility operations. Grenelefe states
that the purpose of the Rule has already been met because all aspects of utility operations were
thoroughly reviewed in a staff-assisted rate case2 earlier this year. Therefore, enforcing that
requirement and mandating that the Utility file a full rate case under Section 367.081, F.S.,
serves no useful additional purpose.
Further, Grenelefe argues that denial of this limited proceeding would result in:
(a) Substantial additional cost and hardship to the utility and its customers by requiring
the preparation and submittal of detailed MFRs and a full rate case for no useful
purpose.
2 Order Nos. PSC-2026-0054-PAA-WS, issued February 25, 2026, in Docket No. 20250023-WS, In re: Application
for staff-assisted rate case in Polk County, by NC Real Estate Projects, LLC d/b/a Grenelefe Utility.

ORDER NO. PSC-2026-0360-PAA-WS
DOCKET NO. 20260098-WS
PAGE 4
(b) Substantial 	delay 	in 	the 	Utility 	being 	able 	to 	comply 	with 	DEP 	mandated
improvements to its wastewater system that are already nearing their required
implementation date, thereby adding additional hardship to the Utility.
Requirements of Section 120.542, F.S.
Section 120.542(2), F.S., provides a two-pronged test for determining when waivers of
and variances from agency rules shall be granted:
. . . when the person subject to the rule demonstrates that the purpose of the
underlying statute will be or has been achieved by other means by the person and
when application of the rule would create a substantial hardship or would violate
principles of fairness. For purposes of this section, “substantial hardship” means
demonstrated economic, technological, legal or other type of hardship to the
person requesting the variance or waiver. For purposes of this section, “principles
of fairness” are violated when the literal application of a rule affects a particular
person in a manner significantly different from the way it affects other similarly
situated persons who are subject to the rule.
Purpose of the Underlying Statute
Rule 25-30.445, F.A.C., primarily implements Section 367.0822, F.S.,3 which authorizes
us to “conduct limited proceedings to consider, and act upon, any matter within its jurisdiction . .
. .” Rule 25-30.445(6), F.A.C., serves to limit the matters that we may take up via a limited
proceeding. We have previously opined as to the underlying purpose of Section 367.0822, F.S.:
We believe that the purpose of the Legislature in enacting Section 367.0822,
Florida Statutes (1985), was to provide a narrow exception to Section 367.081,
Florida Statutes (1985), which requires the Commission to consider a broad range
of ratemaking components. The purpose of a limited proceeding is to permit
review of generally singular topics, or a few well-defined issues, to the exclusion
of all others. The limited applicability of such a proceeding mandates that the
burden must rest on the utility to prove that Section 367.0822, Florida Statutes
(1985) should, in fact, be utilized with regard to a specific case. 4
In the instant case, Grenelefe argues that the purpose of the underlying statute is achieved
by reviewing the singular topic – the WWTP rebuild – 	we denied without prejudice in the
previous SARC. We agree that the purpose of the underlying statute will be achieved and that
this limited proceeding is to address just the additional wastewater rates and charges that would
be incurred because of the DEP requirement. The DEP mandate was raised during the utility’s
last SARC, but was denied due to lack of information to make a proper determination. The other
3 Rule 25-30.445, F.A.C., also implements Sections 367.081, 367.0812, 367.121(1)(a), and 367.145(2), F.S.
4 Order No. 16670, issued October 2, 1986, in Docket No. 861056-SU, In re: Petition of Betmar Utilities for Limited
Proceeding for Adjustment in Sewer Rate Base in Pasco County and PSC-2010-0219-PAA-WS.

ORDER NO. PSC-2026-0360-PAA-WS
DOCKET NO. 20260098-WS
PAGE 5
issues that would be addressed in a full rate case under 367.081, F.S., were addressed in the
SARC. The limited proceeding will allow for finality on the WWTP improvements.
Substantial Hardship or Principles of Fairness
The second prong of the rule waiver test is met if strict application of the rule either (1)
creates a substantial hardship or (2) would violate the principles of fundamental fairness. The
utility may meet the second prong through either path and is not required to show both.
Grenelefe argues that denial of this limited proceeding based on the application of Rule
25-30.445(6)(b), F.A.C., would result in substantial hardship because there would be added cost
to the Utility and its customers if Grenelefe were required to prepare and submit detailed MFRs,
that a substantial delay in the improvements to the WWTP would result, and the Utility would
then be in violation of requirements imposed by DEP. We agree that requiring Grenelefe to
prepare and submit detailed MFRs for the entirety of its utility would create a substantial
hardship on the utility and its customers and is unnecessary this quickly after the SARC. On
Grenelefe’s second point, we agree that DEP has mandated that Grenelefe bring its WWTP into
compliance and that delay in pursuing improvements may result in a substantial hardship. The
scope of DEP’s requirements, the cost of potential upgrades, and appropriate recovery are all
factual issues to be addressed by us when our staff brings a full recommendation forward on the
Utility’s Application. Denial of this waiver and the opportunity for Grenelefe to pursue a limited
proceeding 	would 	create 	a 	substantial 	hardship 	for 	the 	Utility. 	Therefore, 	we 	find 	that
Grenelefe’s request satisfies the second prong of Section 120.542, F.S.
Conclusion
Section 120.542(1), F.S., acknowledges that strict application of uniformly applicable
rule requirements can lead to unreasonable, unfair, and unintended results in particular instances.
We must waive a rule if the utility can show both that the purpose of the underlying statute is
achieved by other means, and that the principles of fairness are violated if the rule is strictly
applied. Grenelefe has demonstrated that the purpose of the underlying statute will be achieved
by other means and that the application of the rule would create a substantial hardship or would
violate the principles of fairness. Therefore, we grant the petition for waiver of Rule 25-
30.445(6), F.A.C.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that NC Real Estate Projects, LLC
d/b/a Grenelefe Utility’s Petition for Variance and Waiver is granted and Rule 25-30.445(6),
F.A.C. is waived for the limited purpose requested in the petition. 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

ORDER NO. PSC-2026-Q36Ó-PAA-WS
DOCKET NO. 2026Ó098-WS
PAGE 6
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 our 	final 	resolution of NC Real
Estate Projects, LLC d/b/a Grenelefe Utility’s limited proceeding.
By ORDER of the Florida Public Service Commission this 16th day of October, 2026 	.
ADAM TEÍTZMAN
Commission ClerK
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850)413-6770
Vvww.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.
JDI

ORDER NO. PSC-2026-0360-PAA-WS
DOCKET NO. 20260098-WS
PAGE 7
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 November 6, 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.