POLK COUNTY, Fla. — Just months after state regulators approved higher utility rates, the private company providing water and wastewater service to a sprawling community outside Haines City is back before the Florida Public Service Commission (PSC) seeking another increase.
Grenelefe Utility filed a new application this month seeking higher wastewater rates and dramatically higher “service availability charges.”
The proposal includes a 479.47% increase in wastewater rates. It also seeks sharply higher connection fees paid by new development.
It argues it must recover the cost of an ongoing wastewater treatment plant project. The filing says the utility has little choice but to move forward with the work because it is required by the Florida Department of Environmental Protection (FDEP).
The request comes less than four months after the PSC partially signed off on a separate rate increase that drew fierce opposition from homeowners.
Now, many of those same homeowners say they are struggling to pay their bills and worried about another potential increase.
"The first increase, I went from like $32 to $212," homeowner William Gibson said.
Adam Mitchell said his bill climbed from roughly $40 to nearly $200.
“I understand some increases,” he said. “What’s sad is my electric bill is less than my water bill, and it’s July.”
A fight that didn't end in February
Grenelefe is a golf community in northeast Polk County served by a privately owned water and wastewater utility rather than a city or county system.
The dispute began last year when the utility sought sweeping increases to pay for major infrastructure improvements. Some homeowners argued the proposal would force some people from their homes. They questioned why they should shoulder the costs of decades of neglected infrastructure.
In February, commissioners approved an increase smaller than what the utility originally requested.
They also found the utility's quality of service to be "marginal," and pointed out customer service deficiencies and record-keeping problems. However, regulators found the system remained in compliance with environmental requirements.
Many homeowners hoped the commission's order would settle the matter.
Instead, the utility returned with the new filing.
According to the application, commissioners declined to include major wastewater treatment plant improvements in the previous rate case because they wanted more detailed information about the project. The utility says the new filing, filed July 1, provides that information and asks regulators to reconsider those costs through a “limited proceeding” instead of requiring another full rate case.
A $16 million project
At the center of the new dispute is a new wastewater treatment plant planned on Abbey Court.
Scott House, managing member of Grenelefe Utility, said construction is not optional.
"It's mandated. We have no choice,” he told Tampa Bay 28.
The filing reaches the same conclusion.
It says the utility is seeking recovery of environmental compliance costs associated with rebuilding its wastewater treatment facility as required by the Florida Department of Environmental Protection.
House said the project will modernize an aging system that has generated repeated complaints from customers. He estimated the new technology will eliminate about 80% of the utility's operational problems.
He acknowledged, however, that many underground water lines remain decades old.
He said the utility is trying to be proactive by replacing valves, fire hydrants, and water lines while trying to stay ahead of failures.
However, House summed up the current infrastructure challenge bluntly.
"I inherited a mess,” he said.
Who should pay?
The filing admits the project might place an "extreme burden" on both the utility and its current customers because it requires more than $18 million in wastewater improvements.
The utility says recovering those costs solely through existing customers’ bills would place even more pressure on those homeowners and renters.
Instead, it argues the commission should allow significantly higher “service availability charges” (also known as connection fees), which are paid when a new home connects to the system. Homebuilders are currently building thousands of new homes in Grenelefe.
According to the filing, those charges represent "the only method" available to give existing customers "a chance at long-term reductions in the high rates" by shifting more of the cost of new infrastructure to future growth.
Homeowners remain skeptical and unsatisfied
Homeowners say they continue to judge the utility by the lackluster service they receive.
Gibson said repeated boil water notices and water interruptions have become commonplace.
"Oh, in the past several months, probably 12," he said. "Boil water. Boil water. Boil water."
And Mitchell added that unexpected outages continue.
"One time, I'll get a text or I'll get an email,” he said. Then the next thing I'll know, I go to turn on my water, there's no water."
Don Fousek agreed that interruptions have become routine.
"This is normal for us," he said. "I'd like to say it's abnormal, but it's not."
Last Thursday, Tampa Bay 28 observed many of those concerns firsthand. During interviews with more than 30 homeowners, the community was in the middle of a planned four-hour water interruption. Several of them said they received less than 24 hours of notice. Many said they had been unable to shower before gathering for the interview. While interviews were underway, homeowners' phones buzzed with another notification. This time, a boil water advisory.
Those complaints mirror concerns raised by the Public Service Commission during the last rate case, when regulators concluded the utility's service quality was “marginal” and directed it to improve customer communications and record-keeping.
House argues those improvements are already underway and says the new wastewater plant and technology upgrades will significantly improve reliability once construction is complete.
According to House, the Florida Public Service Commission is expected to consider the new filing later this year.
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Chad Mills calls Polk County home and has witnessed the area’s growth firsthand. He is focused on sharing stories from his neighbors in Lakeland. You can use the form below to connect with Chad.
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