Interoffice Memorandum
DATE: August 26, 2026
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Marc A. Cannata, P.E., Director, Utilities
CONTACT: Tim Armstrong, Deputy Director, Fiscal And Operational Support Division
PHONE: 407-254-9745
DIVISION: Fiscal and Operational Support Division
ACTION REQUESTED:
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Pluris Wedgefield Water and Wastewater System Update. (Fiscal and Operational Support Division)
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PROJECT: N/A
PURPOSE: The Wedgefield subdivision in east Orange County, developed in 1962, is served by two distinct water systems. Some areas rely on well and septic, while approximately 1,800 properties receive centralized water and sewer services. Since their inception, these centralized utility systems (system) have been privately owned and operated. Currently, Pluris Wedgefield, LLC (Pluris) manages this system under the regulatory oversight of the Florida Public Service Commission (FPSC) and the Florida Department of Environmental Protection (FDEP).
Over time, residents have raised concerns about water quality, pricing, and customer service. In late 2016, the Wedgefield homeowners’ associations requested that Orange County consider acquiring the Pluris system. In response, the Board authorized Orange County Utilities (OCU) to competitively solicit professional consultant services to conduct an opinion of value, explore the feasibility of acquiring the Pluris Wedgefield Water and Wastewater Utility System, and present the findings.
During a work session on July 30, 2024, the Board determined there would not be a funding scenario where Orange County is a partner without fair contribution by the affected property owners toward the total acquisition price. Furthermore, the Board indicated there was no support for subsidizing the acquisition through rate increases to existing OCU customers, or through the General Fund.
With a total estimated acquisition cost of $83.4 million at that time, including the purchase price, transaction costs, and significant capital improvement expenses, it became clear that the County’s acquisition of the system was not financially feasible. On July 15, 2025, following extensive efforts, community meetings, and work sessions, the Board and the community voiced their support for the potential acquisition of the Pluris system by the Florida Governmental Utility Authority (FGUA).
On July 29, 2025, OCU provided FGUA with copies of the appraisal and the assessment of the Pluris system. FGUA then began its own assessment of the system and engaged Pluris in acquisition negotiations. On March 19, 2026, the FGUA Board unanimously voted not to proceed with the acquisition of the Pluris system. However, on April 24, 2026, FGUA notified OCU that they had reengaged Pluris-Wedgefield on acquisition negotiations. On June 16, 2026, FGUA requested a $30M advanced investment from Orange County to continue with the acquisition. OCU confirmed that no previous acquisitions by FGUA involved advance payments from the host government. Accordingly, OCU reiterated that a financial contribution from Orange County for FGUA’s acquisition of the Pluris system was a non-starter. On July 8, 2026, FGUA notified OCU that it could not proceed with the acquisition of the Pluris system without an infusion of capital to address the significant and immediate capital needs of the system. Following the failed negotiations, Pluris is faced with several options. Pluris may continue to own and operate their system, seek another potential buyer, or attempt to reengage Orange County.
If Pluris elects to continue operating their system, it will need to address the system’s urgent capital and deferred maintenance requirements. While Pluris could choose to continue deferring major investments and perform only minimal repairs, it is likely that they would initiate a new rate case with the FPSC to increase revenues to address the documented and substantial deferred maintenance of the system. However, Pluris rates for their system is already among the highest in the state, and the community would vigorously oppose any additional rate increases as they have done in the past.
Should Pluris identify an alternative buyer, OCU stands ready to work collaboratively with the entity in the same manner as it has with FGUA, including assisting with required resolutions and interlocal agreements and, where appropriate, supporting efforts to pursue grants for necessary repairs, replacements, and system upgrades.
A final potential outcome is that Pluris is unable to identify a willing buyer, is unsuccessful with their rate case with the FPSC, and ultimately determines that continued operation is no longer financially viable. In this circumstance, Pluris could abandon their system as-is. There is recent precedent for this course of action and both OCU and the County Attorney’s Office have reviewed recent cases in Florida and are familiar with the applicable process should this scenario arise.
OCU will continue to engage with the community to communicate the outcome of the FGUA and Pluris negotiations, outline the potential paths forward, and reaffirm its commitment to working towards a resolution. Further, OCU will continue to communicate with the FDEP and monitor the system’s regulatory compliance. In case of a system or environmental emergency, OCU is prepared to ensure continuity of water and wastewater services to the community. A formal update to the Board has been scheduled for September 15, 2026, to review the status, inform discussion by the Board, and seek further direction.
BUDGET: N/A