Florida City Gas (FCG) customer rates and system reliability will benefit from the Florida Public Service Commission’s (PSC) approval today of a negotiated Settlement Agreement (Settlement) in the company’s pending rate case.
FCG’s Settlement term runs for four years, from June 2018 to May 2022, and includes an annual revenue increase of $11.5 million, instead of the $15.8 million FCG requested in its original October 23, 2017 petition. The Settlement also saves customers $4.5 million in projected tax reductions from the 2017 Tax Cuts and Jobs Act.
“We require FCG to provide reliable service and keep rates reasonable,” said PSC Chairman Art Graham. “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.”
When completed, FCG’s new LNG facility will add 10,000 dekatherms of capacity per day. This increased reliability will be financed through two revenue increases: $2.5 million in June 2019 and $1.3 million in December 2019. In total, FCG’s allowed revenue increase per the Settlement is $15.3 million.
The Settlement sets a return on equity of 10.19 percent, instead of the 11.25 percent FCG requested. It also authorizes FCG to establish a storm reserve with an annual accrual of $57,500 and a target reserve level of $800,000.
Beginning in June, FCG’s typical residential customer using 14 therms will see a monthly bill increase of $1.34, from the present $26.97 (includes the cost of gas) to $28.32. Signatories to the Settlement Agreement include the Office of Public Counsel—representing consumers—and the Federal Executive Agencies.
The PSC held customer service hearings on FCG’s rate request on January 23 in Coral Gables and on January 24 in Port St. Lucie and Melbourne.
FCG currently provides service to more than 108,000 customers throughout south and central Florida.
For additional information, visit floridapsc.com.