State of Florida

pscSEAL

 

Public Service Commission

Capital Circle Office Center ● 2540 Shumard Oak Boulevard
Tallahassee, Florida 32399-0850

-M-E-M-O-R-A-N-D-U-M-

 

DATE:

July 23, 2026

TO:

Office of Commission Clerk (Teitzman)

FROM:

Division of Economics (Ward)

Division of Engineering (Brown)

Office of the General Counsel (Marquez, Stiller)

RE:

Docket No. 20260094-GU – Petition of Coastal Connect Services, LLC for approval of natural gas pipeline transmission company tariff and firm transportation service agreement.

AGENDA:

08/04/26Regular Agenda – Tariff Suspension – Participation is at the Commission’s Discretion

COMMISSIONERS ASSIGNED:

All Commissioners

PREHEARING OFFICER:

Administrative

CRITICAL DATES:

07/23/26 (45-Day Suspension Date)

SPECIAL INSTRUCTIONS:

None

 

 Case Background

On June 8, 2026, Coastal Connect Services, LLC (CCS), filed a petition for approval of a natural gas pipeline transmission tariff and a firm transportation service agreement. CCS is a limited liability company formed under Texas law and registered to do business in Florida in accordance with Section 607.1505, Florida Statutes (F.S.). Consistent with Section 368.103(4), F.S., CCS does not own or operate any facilities primarily for the local distribution of natural gas or that is subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act, 15 U.S.C. ss. 717 et seq. Additionally, CCS is not a municipality or any agency thereof or a special district created by special act to distribute natural gas.

In its petition, CCS stated that the reason it is requesting approval of a natural gas pipeline transmission tariff is to fill a specific need for the safe, timely, and efficient delivery of natural gas. Specifically, CCS seeks to provide natural gas transmission service to Space Exploration Technologies Company (SpaceX). SpaceX operates facilities on Cape Canaveral in Brevard County where it launches a variety of materials and humans into space for multiple customers including the U.S. Department of Defense. CCS stated in its petition that as SpaceX’s operations continue to grow, it has a growing need for significant supplies of natural gas, which it liquifies for use as rocket fuel.

If the petition is approved, CCS would own the anticipated pipeline facility and serve as the transportation service provider. CCS’s capacity is presently contemplated to be fully obligated. This means that CCSs first customer, SpaceX, would contract for all of the contemplated capacity on the new pipeline facility.

In a letter to Commission staff dated June 25, 2026, CCS waived the file and suspend provision of Section 368.105(3), F.S., until the August 2026 agenda. Staff issued a data request on June 26, 2026, for which responses were received on July 10, 2026.

This recommendation addresses the suspension of the proposed tariffs. The Commission has jurisdiction over this matter pursuant to Sections 368.104 and 368.105, F.S.

 


Discussion of Issues

Issue 1: 

 Should Coastal Connect Services, LLC’s natural gas pipeline transmission company tariff be suspended?

Recommendation: 

 Yes. The proposed tariffs should be suspended to allow staff sufficient time to review the petition and gather all pertinent information in order to present the Commission with an informed recommendation on the tariff proposals. (Ward)

Staff Analysis: 

 Staff recommends that the proposed tariffs be suspended to allow staff sufficient time to review the petition and gather all pertinent information in order to present the Commission with an informed recommendation on the tariff proposals.

Pursuant to Section 368.105(3), F.S., the Commission may withhold consent to the operation of all or any portion of a new rate schedule, delivering to the natural gas transmission company requesting such a change a reason or written statement of good cause for doing so within 45 days. In a letter to Commission staff dated June 25, 2026, CCS waived the file and suspend provision of Section 368.105(3), F.S., until the August 2026 agenda. Staff believes that the reason stated above is a good cause consistent with the requirement of Section 368.105(3), F.S.

 


Issue 2: 

 Should this docket be closed?

Recommendation: 

 No. This docket should remain open pending the Commission’s decision on the proposed tariffs and transportation service agreement. (Marquez, Stiller)

Staff Analysis: 

 This docket should remain open pending the Commission’s decision on the proposed tariffs and transportation service agreement.