KEY V!YORDS: CCsAv& f
November 13, 1974 / l O4./

MEMORANDUM

TO: DERRILL S. McATEER, CHAIRMAN, DISTRICT GOVERNING BOARD

FROM: JAY T. AHERN, STAFF ATTORNEY

RE: Public Service Commission's ability to order General
Development Corporation to extend water supply beyond the
latter's estimated project pumpage in DeSoto County area


At the recent meeting on October 17, 1974 in Arcadia with representatives
of the DeSoto County Commissioners and General Development Corporation,
you requested an opinion on the above referenced matter. Sonny Vergara
asked me to investigate the matter and give you my opinion.

My research on the matter indicates water companies are governed by Chapter
367, Florida Statutes. This chapter places the responsibility to.regulate
water companies in the Public Service Commission. This Commission, after
holding a public hearing, may order water companies to improve, extend and
make additions to its plant and equipment when reasonably necessary, to
secure sufficient.service or facilities to those entitled thereto and the
Commission finds it will not impair its capacity to serve existing customers
or ability to operate efficiently. Thus, a water company could be ordered
to increase or enlarge its facilities if the Public Service Commission finds
it can do so without injuring its existing service or financial and opera-
tional efficiency.

It should be noted a unique situation exists in DeSoto County. The Public
Service Commission has no authority in said county unless 'the County
Commission, by resolution, allows the Public Service Commission to regulate
water companies in said county. I have called and spoken with David Holloman,
attorney for the county, on whether the county passed such a resolution. Mr,
Holloman advised the writer the county had not passed such a resolution, and
in fact,'the county did not have any ordinance regulating water companies;
and he proposes to advise the county to adopt an ordinance governing utilities.

Consequently, I find that in DeSoto County, General Development Corporation
presently is not subject to regulation as a utility by the Public Service
Commission or the DeSoto County Commission. Thus, it is conceivable that
General Development Corporation could be ordered in an adjoining county
to enlarge its service by the Public Service Commission and in compliance
therewith enlarge its pumping facilities in DeSoto County. As a matter of
information, General Development Corporation is subject to the Public Service
Commission in Charlotte County wherein it supplies water to the public, and
abuts DeSoto County.

JTA:1d ^

cc: Chairman R. V. Griffin
Myron G. Gibbons, Esquire
L. M. Blain, Esquire