The Florida Public Service Commission (PSC) today approved a Settlement Agreement (Agreement) for Peoples Gas System’s (PGS) base rate petition. After questioning all parties, Commissioners agreed that the Agreement terms were in the public interest.
Signed by PGS, the Office of Public Counsel--representing consumers--and the Florida Industrial Power Users Group, the Agreement reduces PGS’s requested base rate increase from $83 million to $58 million. The $58 million includes the $23.6 million revenue requirement for the Cast Iron/Bare Steel Rider projects--currently being recovered from customers--for a net increase of $34.3 million. The Return on Equity (ROE) will be within a range of 8.9 percent to 11 percent, with a midpoint of 9.90 percent. PGS will withdraw its petition for a regulatory asset to track COVID-19 costs and will not seek deferral of COVID-19 costs during the term of the settlement.
“This Agreement maintains base rates through 2023 for PGS customers and addresses any future state and federal tax changes or storm restoration costs. Overall, it benefits customers and effectively resolves a lengthy, costly hearing,” said PSC Chairman Gary Clark. “We found the Agreement to be in the public interest and appreciate the commitment of Peoples Gas System to provide clean, safe, and reliable service to its customers.”
Beginning in January 2021, a residential customer using 20 therms per month would see a bill increase of approximately $2.76.
On June 8, 2020, PGS filed its petition for a rate adjustment. The utility’s last rate case before the PSC was in 2009. The PSC held customer service hearings virtually on October 1, 7, and 8 to hear from the utility’s customers about its rate request and its quality of service.
PGS currently serves more than 400,000 residential, commercial, and industrial natural gas customers in 14 Florida geographical service areas.
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