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10/24/2013 Contact: 850-413-6482

PSC Approves Prudence for Florida's Third Natural Gas Pipeline

TALLAHASSEE — The Florida Public Service Commission (PSC) today approved the prudence for Florida Power & Light Company’s (FPL) contracts for a planned 600-mile pipeline system to bring more natural gas into the state, a critical component to Florida’s energy future.  The pipeline—a $3.5 billion project—will join Florida’s two existing pipelines, the larger one owned by Florida Gas Transmission Company, LLC, and the other owned by Gulfstream Natural Gas System, LLC. 

“The Commission had already determined that additional gas capacity was necessary to meet the growing electricity needs of Floridians,” said PSC Chairman Ronald A. Brisé.  “Today’s approval of FPL’s investment in natural gas infrastructure will benefit all Floridians by securing the state’s energy sector.”

Expected to be in service by mid-2017, the pipeline will run from Southwest Alabama, through Georgia and down to Central and South Florida.  The new pipeline system is also expected to help create jobs to support its construction. 

FPL has entered into long-term natural gas transportation contracts with Sabal Trail Transmission and Florida Southeast Connection, which are projected to save up to $450 million, compared to other options, over the term of the contracts.  The PSC also decided today that it will review the prudence of the actual transportation costs during its annual Cost Recovery Clause hearings.

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