Case Background
On August 30,
2024, Florida City Gas (FCG or utility) filed a petition for approval of its
safety, access, and facility enhancement (SAFE) program true-up and 2025 cost
recovery factors. The SAFE program was originally approved by the Commission in
Order No. PSC-15-0390-TRF-GU (2015 Order) to recover the cost of relocating on
an expedited basis certain existing gas mains and associated facilities from
rear lot easements to the street front.
On
December 3, 2024, the Commission approved FCG’s proposed SAFE tariffs
for the period January through December 2025. On December 5, 2024, FCG notified
staff that the Seventh Revised Sheet No. 79 reflected an incorrect SAFE factor
for the GS-6K customer class. After reviewing the modification to the Seventh
Revised Sheet No. 79, staff believes that Commission approval of the revised
tariff is required. The Commission has jurisdiction over the matter pursuant to
Sections 366.04, 366.041, 366.05, and 366.06, Florida Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve FCG's proposed modification
to Seventh Revised Sheet No. 79?
Recommendation:
Yes. The Commission should approve FCG’s proposed
corrected Seventh Revised Sheet No. 79. The modification provides the correct
SAFE program charge for the GS-6K customer class as calculated in FCG’s initial
petition. The tariffs should be effective for the period January through
December 2025. (P. Kelley)
Staff Analysis:
The proposed modification to the Seventh Revised
Sheet No. 79 would revise the SAFE program charge for the GS-6K customer class
to $7.77, as opposed to $4.66, which was approved at the December 3, 2024
Agenda Conference. Staff notes that FCG calculated the charge for the GS-6K
customer class correctly in its work papers included in its August 30, 2024,
petition; however, the tariff contained an incorrect charge.
As discussed in staff’s previous recommendation, the
methodology approved for the SAFE program allocates the current cost of a
2-inch pipe to all customers on a per customer-basis and allocated the
incremental cost of replacing a 4-inch pipe to customers who use over 6,000
therms per year. The GS-6K customer class is applicable to no-residential
customers who use between 6,000 and 24,999 therms per year. Therefore, staff
believes the correction to the Seventh Revised Sheet No. 79 is appropriate,
because the correction would comply with the SAFE program cost allocation
methodology approved by the Commission in the 2015 Order. The Commission’s vote
from the December 3, 2024 Agenda Conference should otherwise remain unchanged.
Conclusion
The Commission should approve FCG’s proposed correction to
the Seventh Revised Sheet No. 79. The modification to the Seventh Revised Sheet
No. 79 provides the correct SAFE program charge for the GS-6K customer class,
as calculated in FCG’s initial petition. The tariffs should be effective for
the period January through December 2025.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If Issue 1 is approved and a protest is filed
within 21 days of the issuance of the order, the tariffs should remain in
effect, with any revenues held subject to refund, pending resolution of the
protest. If no timely protest is filed,
this docket should be closed upon the issuance of a consummating order. (Dose)
Staff Analysis:
Yes. If Issue 1 is approved and a protest is filed
within 21 days of the issuance of the order, the tariffs should remain in
effect, with any revenues held subject to refund, pending resolution of the
protest. If no timely protest is filed, this docket should be closed upon the
issuance of a consummating order.
