FPSC Establishes Rate Base Value for Placid Lakes Utilities, Inc. Water and Wastewater Systems

"In evaluating the proposed acquisition, the Commission considered the potential benefits to Placid Lakes customers and the utility systems," Chairman Smith said. "The proposed acquisition is expected to result in improvements in service quality and regulatory compliance while providing opportunities for greater efficiency and long-term rate stability."

SWS filed its petition with the FPSC on February 27, 2026, requesting that the FPSC establish the rate base value of the Placid Lakes utility systems using the alternative procedure for establishing rate base value provided in Section 367.0811, Florida Statutes, and Rule 25-30.0372, Florida Administrative Code.

The alternative procedure was established by the Florida Legislature in 2023 to encourage consolidation of water and wastewater utility systems and promote economies of scale, greater access to capital, infrastructure improvements, and improved quality of service. Under the procedure, the rate base value may not exceed the lesser of the negotiated purchase price or the average of three independent appraisals.

Through this process, the FPSC determined that the proposed transaction is in the public interest and established $5.75 million as the appropriate rate base value for the Placid Lakes systems.

The proposed acquisition remains subject to approval in separate FPSC proceedings. If the acquisition is approved, SWS intends to consolidate Placid Lakes with its other systems in its next rate case, which is estimated to take effect in 2029. Any changes to customer rates resulting from the consolidation would be addressed in that proceeding.

Placid Lakes serves approximately 2,250 customers in Highlands County.

SWS provides service to approximately 35,000 water and 30,000 wastewater customers in Charlotte, Highlands, Lake, Lee, Marion, Orange, Pasco, Pinellas, Polk, and Seminole counties.