The Florida Public Service Commission will hear a request today to reopen the rate case for the Water Management Company on St. George Island but they are expected to deny a rehearing.
The office of Public Council is asking that the case be reopened, but public service commission staff is opposed to it.
The water company last year sought a rate increase of nearly 93 percent that it said was needed to purchase new equipment and to keep the company from operating at a loss.
The increase request was rejected in December and the water company was ordered to give back money it had received during an interim rate increase that began last summer.
One of the main reasons the request was rejected was because the Commission found that there was “some evidence that the Utility advanced approximately $1.2 million to other companies owned by Gene Brown while the water company reported cumulative net losses of approximately $727,000.
The water company argued that the advances were justified because Mr. Brown has been defraying the expenses of the water company through personal loans taken for the utility’s benefit.
The Public Service Commission said it will need to see a cash flow audit of the company before it can take any action on rates, but it has not yet seen one.
Because of that, the Public Service Commission staff will recommend today that the commission not reopen the case.
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