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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 (Nguyen, Hampson) Office of the General Counsel (Dose) |
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RE: |
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AGENDA: |
01/06/26 – Regular Agenda – Proposed Agency Action – Interested Persons May Participate |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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SPECIAL INSTRUCTIONS: |
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On October 29, 2025, Peninsula Pipeline Company, Inc. (Peninsula), filed a petition seeking approval of a second amendment to firm transportation service agreement between Peninsula and Florida Public Utilities Company (FPUC), collectively the Parties. The proposed second amendment to the agreement is included as Attachment A to this recommendation.
Peninsula and FPUC are both wholly owned subsidiaries of Chesapeake Utilities Corporation (Chesapeake). Peninsula operates as an intrastate natural gas transmission company as defined by Section 368.103(4), Florida Statutes (F.S.).[1] FPUC operates as a local distribution company subject to the regulatory jurisdiction of the Commission pursuant to Chapter 366, F.S.
By Order No. PSC-07-1012-TRF-GP, Peninsula received approval of an intrastate gas pipeline tariff that allows it to construct and operate intrastate pipeline facilities and to actively pursue agreements with natural gas customers.[2] The Parties are subsidiaries of Chesapeake, and agreements between affiliated companies must be approved by the Commission pursuant to Section 368.105, F.S.
By Order No. PSC-2017-0498-PAA-GU, the Commission approved the initial transportation service agreement between Peninsula and FPUC (2017 Order).[3] Pursuant to the 2017 Order, Peninsula would construct and own a new pipeline in New Smyrna Beach and relocate an existing gate station. The purpose of this construction project was to eliminate pressure issues FPUC was facing at the time as well as to provide the opportunity for growth in the New Smyrna Beach area.[4]
By Order No. PSC-2024-0072-PAA-GU, the Commission approved Peninsula’s amended agreement to include an additional source of gas, an additional interconnect, and four new delivery points.[5] Peninsula stated the addition to the project was needed to ensure sufficient additional gas supply and provide operational support to FPUC’s system.[6] In response to staff’s data request, Peninsula states the construction of this project is anticipated to be complete in 2026.[7] This petition for a second amendment arises out of the need for an additional delivery point.
During the evaluation of the petition, staff issued one data request to the Parties for which responses were received on December 2, 2025.[8] The Commission has jurisdiction over this matter pursuant to Sections 368.104, and 368.105, F.S.
