The Florida Public Service Commission (PSC) today approved a Settlement Agreement that will reduce monthly bills for TECO Peoples Gas System (Peoples) customers beginning in January 2019.
A result of the Tax Cuts and Jobs Act of 2017, the Agreement reduces Peoples revenue requirement by $11.6 million annually. The revenue decrease will affect the base rate portion of the bill for all customer classes. For example, a residential customer using a monthly average of 20 therms would see a $1.00 reduction in the base rate portion of the bill.
“We want to ensure that customers directly benefit from recent changes to the federal tax law through lower bills,” said PSC Chairman Art Graham. “This Agreement ensures that these savings for Peoples’ customers will continue beyond 2019, and we found it to be in the public interest.”
Parties to the Agreement include Peoples, the Office of Public Counsel—representing customers—and the Florida Industrial Power Users Group. Terms of the Agreement allow Peoples to initiate a base rate proceeding in 2020, as long as any PSC-approved rate change is not effective before 2021.
TECO Peoples Gas System, Florida’s largest natural gas distribution utility, serves about 370,000 customers across Florida. Peoples is a subsidiary of Emera Inc., headquartered in Halifax, Nova Scotia, Canada.
For additional information, visit floridapsc.com.