Florida Public Service Commission approves settlement agreement in Florida City Gas rate case
The Florida Public Service Commission (PSC) approved Monday a negotiated Settlement Agreement in the pending rate case for Florida City Gas (FCG).
The settlement includes an annual revenue increase of $11.5 million, down from the $15.8 million FCG requested in its original October 23, 2017, petition. It also includes $4.5 million in projected tax reductions from the 2017 Tax Cuts and Jobs Act. FCG’s Settlement term runs for four years from June 2018 to May 2022.
“We require FCG to provide reliable service and keep rates reasonable,” PSC Chairman Art Graham said. “By providing additional revenues for an LNG facility, the PSC increased service reliability for FCG customers, and we are also providing stable rates for four years that are lower than those originally proposed.”
The agreement sets a return on equity of 10.19 percent, rather than the 11.25 percent FCG requested. It authorizes FCG to create a storm reserve with an annual accrual of $57,500 and a target reserve level of $800,000.
Beginning in June, the monthly bill for a typical residential customer using 14 therms will increase by $1.34, from the present $26.97 to $28.32.
Signatories to the Settlement Agreement include the Office of Public Counsel and the Federal Executive Agencies.
FCG is currently constructing a new liquid natural gas (LNG) facility that will add 10,000 dekatherms of capacity per day. The facility will be financed through two revenue increases: $2.5 million in June 2019 and $1.3 million in December 2019. FCG’s total allowed revenue increase per the settlement is $15.3 million.
