The Florida Public Service Commission (PSC) today approved Settlement Agreements for Florida Public Utilities Company (FPUC) and for Florida City Gas (FCG) to implement savings from the Tax Cuts and Jobs Act of 2017.
FPUC and the Office of Public Counsel (OPC) agreed on a 2018 Tax Settlement that 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, then starting in January 2019 the savings will be used to permanently reduce rates. Another $288,000 in deferred tax savings will first reduce fuel costs and replenish storm reserve funds, then the savings will be used to further reduce base rates in January 2021.
In the Florida City Gas case, the company, OPC, and the Federal Executive Agencies agreed to a 2018 Stipulation and Settlement that will reduce the gas utility’s base rates by a total of $305,000 in January 2019 to reflect ongoing tax savings. Also starting in January 2019, the company’s revenues will be reduced by an additional $305,000 annually for five years to compensate customers for retroactive impacts of the tax law.
“We continue to ensure that Florida’s customers benefit from the federal tax law changes,” said PSC Chairman Art Graham. “Both settlements are in the public interest by making sure customers realize savings through permanently reduced rates.”
FPUC serves approximately 32,000 customers, across two divisions, one on Amelia Island (NE Division) and the other serving a largely rural service territory in the north central Panhandle (NW Division).
FCG, a subsidiary of Juno Beach-based NextEra Energy, Inc, is a natural gas distribution company serving approximately 110,000 residential and commercial customers in Miami-Dade, Brevard, St. Lucie, and Indian River counties.
For additional information, visit floridapsc.com.