Case Background
On
July 1, 2026, Peoples Gas System, Inc. (Peoples) filed a petition seeking
approval to implement its 2027 subsequent year adjustment (SYA). The Commission
approved the 2027 SYA in its Final Order addressing the settlement to Peoples’
request for base rate increase (Rate Case Order). In the Rate Case Order, the Commission
found that the SYA approved in the settlement resulted in lower rates for
customers and was reasonable when considered in the totality of the whole
settlement.
Paragraph
4(b) of the settlement agreement approved by the Rate Case Order discusses the
2027 SYA, including the approved total of the 2027 SYA being $25 million, how
the base rate charges will be developed, and how the cost recovery clause and
rider factors will be developed using the billing determinants for 2027.
Paragraph 4(b) of the settlement also discusses the requirement to file their
proposed tariffs to implement the 2027 SYA no later than July 31, 2026,
allowing Peoples to provide timely notice to customers and to implement the new
tariffs effective the first billing cycle of January 2027.
Peoples filed revised Attachments 4 and 5 to its petition
on July 15, 2026, to correct scrivener’s errors. On August 24, 2026, the
Commission suspended the proposed tariffs to allow staff sufficient time to
analyze the utility's filing.
Staff issued one data request during the evaluation of the petition, with
responses filed by Peoples on August 13, 2026.
Attachment A to the recommendation contains the proposed
legislative tariff sheets that would implement the 2027 SYA. The Commission has
jurisdiction over this matter pursuant to Sections 366.05 and 366.06, Florida
Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve Peoples' proposed
rates and associated tariffs to implement its 2027 subsequent year adjustment?
Recommendation:
Yes. The Commission should approve Peoples’ proposed
rates and associated tariffs to implement its 2027 SYA, effective with the
first billing cycle of January 2027. The rates and associated tariffs are
consistent with the Commission’s prior decision in the Rate Case Order. The
rates have been calculated to recover a 2027 SYA annual revenue increase of $25
million, as previously approved by the Commission and as presented in Attachment
Three of Peoples’ petition. The revised tariffs implementing the 2027 SYA are
included as Attachment A to the recommendation. (Nguyen)
Staff Analysis:
Peoples’ petition included the proposed tariff
sheets, the allocation of the revenue increase to the various rate classes, and
calculations showing the revenue by rate schedule under current and proposed
rates. Staff has reviewed Peoples’ calculations of the SYA and believes that
they are consistent with the Rate Case Order. The base rates and charges
associated with the $25 million were developed using the cost recovery revenue
allocation and the billing determinants for 2027 that Peoples will use to
develop its cost recovery clause and rider factors for 2027. Staff compared the
therm sales by rate class to Peoples’ facilities relocation clause filing in
Docket No. 20260011-GU and confirmed that Peoples’ calculations relied on the
same therm sales.
Conclusion
The Commission should approve Peoples’ proposed rates and
associated tariffs to implement its 2027 SYA, effective with the first billing
cycle of January 2027. The rates and associated tariffs are consistent with the
Commission’s prior decision in the Rate Case Order. The rates have been
calculated to recover a 2027 SYA annual revenue increase of $25 million, as
previously approved by the Commission and as presented in Attachment Three of
Peoples’ petition. The revised tariffs implementing the 2027 SYA are included
as Attachment A to the recommendation.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If a protest is filed within 21 days of the
issuance of the Order by a person whose substantial interests are affected, the
tariff should remain in effect, with any incremental 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. (Thompson)
Staff Analysis:
If a protest is filed within 21 days of the issuance
of the Order by a person whose substantial interests are affected, the tariff
should remain in effect, with any incremental 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.
