Florida PSC reduces rates for Florida Public Utilities Company, Florida City Gas to reflect tax savings

The Florida Public Service Commission (PSC) approved Tuesday settlement agreements for Florida Public Utilities Company (FPUC) and for Florida City Gas to reduce rates to reflect savings from the Tax Cuts and Jobs Act of 2017.

“We continue to ensure that Florida’s customers benefit from the federal tax law changes,” PSC Chairman Art Graham said. “Both settlements are in the public interest by making sure customers realize savings through permanently reduced rates.”

The 2018 Tax Settlement agreed on by the FPUC and the Office of Public Counsel (OPC) will reduce the electric utility’s base rates by more than $925,000 annually.

In 2018, $638,000 in net savings will be applied to storm costs. Starting in January 2019, the savings will permanently reduce rates. Another $288,000 in deferred tax savings will first reduce fuel costs and replenish storm reserve funds and then be used to further reduce base rates in January 2021.

Florida City Gas, the OPC, and the Federal Executive Agencies agreed to a 2018 Stipulation and Settlement that will reduce the utility’s base rates by a total of $305,000 in January 2019 to reflect tax savings. The company’s revenues will also be reduced starting in January 2019 by an additional $305,000 annually for five years to compensate customers for retroactive impacts of the tax law.