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Public Service Commission


08/07/2018 Contact: 850-413-6482

Florida PSC Orders KW Resort Utilities Corporation to Account for Billing Violations

TALLAHASSEE — The Florida Public Service Commission (PSC) today ordered KW Resort Utilities Corporation (KWRU) to make refunds to customers and to account for--or “show cause”--why its billing practices appear to be inconsistent with the utility’s approved tariff.

“Our staff audit and investigation of KWRU’s billing practices found attempts to rectify errors, but also revealed continued problems that warrant action,” said PSC Chairman Art Graham. “We expect KWRU’s management to mitigate its incorrect billing practices and satisfy customer concerns.”

To remedy its billing errors, KWRU has already made refunds to three of its general service customers:  $72,701.12 to Meridian West, $25,512.91 to Banyan Grove, and $43,402.79 to Flagler Village.  The PSC also ordered the utility to refund $26,408 with interest to Safe Harbor Marina and $41,034 with interest to Sunset Marina.  Although KWRU has made some restitution, Commissioners found the utility repeatedly demonstrated a disregard for its obligation to charge its PSC approved rates—the reason for the “show cause.”

Following today’s decision, KWRU has 21 days to respond to the PSC as to why it should not be fined $10,000 for failing to charge its approved rates. If the show cause order is issued, the utility has two options: 1) it may request a hearing; or 2) pay the fine.

In other action today, the PSC approved a $1.5 million revenue increase for KWRU’s operational costs, reducing the utility’s request by  more than $400,000.  A residential customer using 4,000 gallons per month will pay $79.78 monthly, an increase of $26.80.

As part of the evaluation process for KWRU’s rate request, the PSC conducted a technical hearing and two customer service hearings on May 15 and 16 in Key West, allowing customer feedback about KWRU and the rate-setting process. Commissioners attended and participated in the hearings.

KWRU is a class A utility providing wastewater service to 1,865 customers in Monroe County.  Water service is provided by the Florida Keys Aqueduct Authority.  

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