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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
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TO: |
Office of Commission Clerk (Teitzman) |
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FROM: |
Division of Economics (Ward, Hampson) Office of the General Counsel (Sandy) |
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RE: |
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AGENDA: |
10/03/23 – Regular Agenda – Tariff Suspension – Participation is at the Commission’s discretion |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
Administrative |
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SPECIAL INSTRUCTIONS: |
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On September 1, 2023, Peoples Gas System, Inc. (Peoples or utility) filed a petition for approval of the 2022 true-up, projected 2023 true-up, and 2024 revenue requirements and surcharges associated with its cast iron/bare steel (CI/BS) pipe replacement rider. The rider was originally approved in Order No. PSC-12-0476-TRF-GU (2012 Order) to recover the cost of accelerating the replacement of cast iron and bare steel pipes through a surcharge on customers' bills.[1] As established by the 2012 Order, Peoples would roll replaced infrastructure into rate base during a rate case, and the CI/BS surcharge would be “reset to zero.”[2] The surcharge is set to terminate when all applicable CI/BS pipes have been replaced and included in rate base. During the 2020 Peoples rate case, CI/BS investments as of December 31, 2020, were moved into rate base pursuant to Order No. PSC-2020-0485-FOF-GU.[3]
Currently, Peoples has an ongoing rate case in Docket No. 20230023-GU and has proposed to move CI/BS investments made between January 1, 2021, and December 31, 2023, into rate base. The parties reached a Type 2 stipulation on the issue, which the Commission approved at the beginning of the hearing on September 12, 2023.[4]
As part of its petition in the subject docket, Peoples is requesting Commission approval of the final true-up amount for the calendar year of 2022 of $787,888 under-recovery (including interest). Additionally, Peoples is requesting an estimated end of period total true-up for 2023 of an under-recovery of $10,683, and projected capital expenditures for replacement during 2024 of $18,802,302. Peoples is also requesting approval of revised CI/BS replacement rider surcharges that would go into effect January 1, 2024. Peoples’ current surcharges were approved in Order No. PSC-2022-0405-TRF-GU.[5]
Staff issued a data request to the utility on September 12, 2023, to which responses are pending. This is staff’s recommendation to suspend the proposed tariffs. The Commission has jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and 366.06, Florida Statutes (F.S.).