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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 (Guffey) Office of the General Counsel (Dose) |
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RE: |
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AGENDA: |
10/03/23 – Regular Agenda – Decision on Suspension of Rates – Participation is at the Commission’s Discretion |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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SPECIAL INSTRUCTIONS: |
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On September 1, 2023, Florida Public Utilities Company (FPUC or Company) filed a petition for approval of its Gas Utility Access and Replacement Directive (GUARD Program) cost recovery factors for the period January through December 2024. In Order No. PSC-2023-0235-PAA-GU (2023 Order), the Commission approved FPUC’s 10-year GUARD program, consisting of two components of (1) replacement of problematic pipes and facilities and (2) relocation of mains and service lines located in rear easement and other difficult to access areas to the front lot easements.[1] The 2023 Order allows FPUC to recover the revenue requirements of expedited programs to replace problematic pipes and facilities and enhance the safety and accessibility of portions of FPUC’s natural gas distribution system through a monthly surcharge on customers’ bills.
In the 2023 Order, the Commission directed FPUC to file its annual GUARD program petition to revise the surcharge on or before September 1 of each year and implement the revised surcharge effective January 1 through December 31 of the following year, and file its first petition on September 1, 2023. FPUC, in its petition, included revised tariff sheets 7.000 through 7.002 (Index), 7.403, 7.404, and 7.405.
The Commission further ordered FPUC to (1) include all calculations to show a final true-up, actual-estimated true-up, projected year investments and associated revenue requirements, and the calculations of the GUARD factors by rate class, (2) provide a report including the location, date, description, and associated costs of all replacement projects completed and all projects scheduled for the following year, and (3) include any remaining GRIP over- or under-recovery in the 2024 GUARD cost recovery. FPUC has complied with the 2023 Order directives stated above.
During the review process, staff issued a data request to FPUC on September 11, 2023, for which the responses were received on September 18, 2023. This is staff’s recommendation to suspend the proposed tariffs. The Commission has jurisdiction over this matter pursuant to Sections 366.04, 366.05, and 366.06, Florida Statutes (F.S.).