Florida Public Service Commission native order document 10032-2024

OCR transcription for search; preserved printed pages are authoritative

FILED 11/25/2024
DOCUMENT NO. 10032-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for approval of swing service DOCKET NO. 20240135-GU

rider, by Florida Public Utilities Company, ORDER NO, PSC-2024-0487-TRF-GU
Florida Public Utilities Company-Indiantown — || ISSUED: November 25, 2024

Division, Florida Public Utilities Company-
Fort Meade, and Florida Division of
Chesapeake Utilities Corporation.

The following Commissioners participated in the disposition of this matter:

MIKE LA ROSA, Chairman
ART GRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA PASSIDOMO

ORDER APPROVING SWING SERVICE RIDER RATES

BY THE COMMISSION:

Background

On September 3, 2024, Florida Public Utilities Company (FPUC or utility) filed a
petition for approval of revised swing service rider rates and associated tariffs for the period
January through December 2025. The swing service rider is a cents per therm charge that is
included in the monthly gas bill of transportation customers, who purchase gas from third party
marketers, and therefore do not pay the Purchased Gas Adjustment (PGA) charge.' FPUC is a
local natural gas distribution company (LDC) subject to our regulatory jurisdiction pursuant to
Chapter 366, Florida Statutes (F.S.).

We first approved FPUC’s swing service rider tariff by Order No. PSC-16-0422-TRF-GU
(2016 Order) and the initial swing service rider rates were in effect for the period March through
December 2017.7 The swing service rider requires FPUC to file an annual petition to recalculate
the swing service rider rates based on the utility’s actual interstate capacity costs and the most
recent 12 months of usage data. Furthermore, the swing service order requires FPUC to
incorporate the calculated revenues from the swing service rider as a credit to the PGA
proceeding for the concurrent year. The January through December 2024 swing service rider

! The PGA charge is set by the Commission in the annual PGA cost recovery clause proceeding.

> Order No. PSC-16-0422-TRF-GU, issued October 3, 2016, in Docket No. 160085-GU, Jn re: Joint petition for
approval of swing service rider, by Florida Public Utilities Company, Florida Public Utilities Company-Indiantown
Division, Florida Public Utilities Company-Fort Meade, and Florida Division of Chesapeake Utilities Corporation.

ORDER NO. PSC-2024-0487-TRF-GU
DOCKET NO. 20240135-GU
PAGE 2
rates were approved in Order No. PSC-2023-0358-TRF-GU.3 The proposed modifications to the
swing service rider rate schedule are indicated on Attachment A, with the proposed 2025 swing
service rider tariffs on Attachment B.
By Order No. PSC-2024-0454-PCO-GU, issued October 17, 2024, we suspended the
proposed swing service rider tariffs for further review by our staff. During evaluation of the
petition, our staff issued a data request to the utility for which responses were received October
3, 2024. We have jurisdiction over this matter pursuant to Sections 366.04, 366.041, 366.05, and
366.06, F.S.
Decision
The utility incurs intrastate capacity costs when it transports natural gas on intrastate
pipelines (i.e., pipelines operating within Florida only). The utility has two types of natural gas
customers: 	sales 	and 	transportation. 	Sales 	customers 	are 	primarily 	residential 	and 	small
commercial customers that purchase natural gas from an LDC and receive allocations of
intrastate capacity costs through the PGA charge. Transportation customers receive natural gas
from third party marketers, known as shippers and, therefore, do not pay the PGA charge to the
LDC. 4 The swing service rider allows FPUC to recover allocations of intrastate capacity costs
from transportation customers.
Updated 2025 Swing Service Rider Rates
The 	updated 	2025 	swing 	service 	rider 	rates 	were 	calculated 	based 	on 	the 	same
methodology approved in the 2016 Order. As stated in paragraph 7 of FPUC’s petition, the total
intrastate capacity costs for the period July 2023 through June 2024 are $30,003,382, compared
to $31,941,095 for the period July 2022 through June 2023. The total intrastate capacity costs
reflect payments by FPUC to intrastate pipelines for the transportation of natural gas, pursuant to
our approved transportation agreements.
In response to our staff’s first data request, FPUC clarified some costs included in the
intrastate pipeline cost total, in Schedule D of the petition. There appeared to be significant
changes to some costs, which FPUC clarified were due to a change in the methods of organizing
and classifying costs, and not a material change in costs themselves.5 In previous years, the
company had listed individual pipeline contracts on Schedule D. However, the 2025 filing
combined all contracts under one line item, labeled “Peninsula Pipeline.” FPUC stated this was
done for confidentiality purposes.6 FPUC further stated there was a year-over-year increase of
$1,518,270 to overall Peninsula Pipeline costs due to new projects becoming operational.7
FPUC’s other intrastate capacity costs include payments associated with legal and consulting
fees, software to manage forecasting, usage tracking, and market tracking.
3 Order No. PSC-2023-0358-TRF-GU, issued November 28, 2023, Docket No. 20230096-GU, In re: Petition for
approval of swing service rider rates for January through December 2024, by Florida Public Utilities Company.
4 The Commission does not regulate the shippers or their charges for the gas commodity.
5 FPUC’s Responses to our Staff’s First Data Request, No. 6a.
6 FPUC’s Responses to our Staff’s First Data Request, No. 6a.
7 FPUC’s Responses to our Staff’s First Data Request, No. 6b.

ORDER NO. PSC-2024-0487-TRF-GU
DOCKET NO. 20240135-GU
PAGE 3
In 2016, the initial order approving the swing service rider excluded Interruptible (COM-
INTT) and Natural Gas Vehicle (COM-NGVT) transportation service because of the nature of
their services. The utility explained, in response to our staff’s first data request, that COM-INTT
and COM-NGVT transportation customers were wrongly included in the 2024 swing service
rider due to a change of personnel.8 FPUC states it collected $150,891 from COM-INTT
customers and $15,076 from COM-NGVT customers via the swing service rider. FPUC has
refunded the affected customers and has corrected the 2025 swing service rider to remove the
COM-INTT and COM-NGVT customer classes. 9
Of the intrastate pipeline costs, $7,367,169 will be billed directly to certain large special
contract customers. The remaining costs of $22,636,213 will be recovered during the period
January 1, 2025 through December 31, 2025.
The utility used actual therm usage data for the period July 2023 through June 2024 to
allocate the intrastate capacity costs. Based on the usage data, we find that the appropriate split
for allocating the cost is 69.96 percent or $15,837,062 to transportation customers and 30.04
percent or $6,799,151 to sales customers, as demonstrated on page 4 of FPUC’s petition. The
transportation customers’ share of $15,837,062 is further allocated to the various transportation
rate schedules in proportion with each rate schedule’s share of the utility’s total throughput. The
sales customers’ share of the cost of $6,799,151 is embedded in the PGA.
To calculate the swing service rider rates, the transportation customers’ share of the cost
is allocated to each transportation customer class and then divided by the customer class’ number
of therms. The swing service revenues the utility has projected to receive in 2025 totals to
$15,837,062.
Credit to the PGA
The total intrastate capacity costs are embedded in the PGA with the projected 2025
swing service rider revenues incorporated as a credit in the calculation of the 2025 PGA. The
amount credited to the 2025 PGA is $15,837,062 plus $7,367,169 received from special contract
customers, for a total of $23,204,231.10
Conclusion
Based on our review of the information in the record, we approve the proposed swing
service rider rates in Attachment B for the period January through December 2025. FPUC’s
proposed swing service rider reflects the updated cost of swing service for transportation
8 FPUC’s Responses to our Staff’s First Data Requests, No. 4a.
9 FPUC’s Responses to our Staff’s First Data Requests, No. 4d.
10 See direct testimony of witness Stacey K. Laster on behalf of FPUC, filed on August 6, 2024, Document No.
08262-2024, in Docket No. 20240003-GU, Exhibit SKL-1, Schedule E-1, line 8 on page 1, and the direct testimony
of Stacey K. Laster, page 3, line 21, through page 4, line 7, included in the petition.

ORDER N O. PSC- 2024-0 487 -TRF-G U
DO CKET N O. 202 40 135 -G U
P AGE4
customers. We find that the total projected intrastate capacity costs are appropriate. Furthermore,
the methodology for calculating the sw ing service rider rates is consistent with the 20 16 Orde r.
Based on the foregoing, it is
ORD ERE D by the 	Florida Public Service Commi ssion that Florida Public Utilities
Co mpan y's propo se d sw ing se rvice rider rates and 	ta ri ffs 	for the period January through
December 2025 are approved . Th e costs included are approp ri ate and the methodology for
ca lc ul at ing the swing service rider rates is consistent w ith the initial order appro ving the t ar iff. It
is fu rther
ORDERED that if a protest is filed within 2 1 days of issuance of the Order, the tariff
shal l remain in effect with any charges held subject to refund pe nding re so lution of the protes t.
It is further
ORDERED that if no timely protest is fi led, thi s docket sha ll be closed upon the issuance
of a Co ns umma ting Order.
RPS
By ORD ER of the Florida Public Service Commi ssion this 25th da y of Nove mber, 2024.
Co mmi ssion 	!erk
Florida Pub lic Se rvice Commission
25 40 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 4 13-6770
www .floridapsc.com
Co pi es furn ished : 	A copy of thi s document is
provided to the parties of record at the time of
issuan ce and, if applicable, interested persons.

ORDER NO. PSC-2024-0487-TRF-GU
DOCKET NO. 20240135-GU
PAGE 5
NOTICE OF FURTHER PROCEEDINGS
The Florida Public Service Commission is required by Section 120.569(1), Florida
Statutes, to notify parties of any administrative hearing or judicial review of Commission orders
that is available under Sections 120.57 or 120.68, Florida Statutes, as well as the procedures and
time limits that apply. 	This notice should not be construed to mean all requests for an
administrative hearing or judicial review will be granted or result in the relief sought.
Mediation may be available on a case-by-case basis. 	If mediation is conducted, it does
not affect a substantially interested person's right to a hearing.
The Commission's decision on this tariff is interim in nature and will become final, unless
a person whose substantial interests are affected by the proposed action files a petition for a
formal proceeding, in the form provided by Rule 28-106.201, Florida Administrative Code. This
petition must be received by the Office of Commission Clerk, 2540 Shumard Oak Boulevard,
Tallahassee, Florida 32399-0850, by the close of business on December 16, 2024.
In the absence of such a petition, this Order shall become final and effective upon the
issuance of a Consummating Order.
Any objection or protest filed in this docket before the issuance date of this order is
considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest period.

ORDER NO. PSC-2024-0487-TRF-GU Attachment A
DOCKET NO. 20240135-GU Page | of 1
PAGE 6

Florida Public Utilities Company

FPSC Tariff SecondFivst Revised Sheet No. 7.407

Original Volume No. 2 Cancels FirstOriginal Sheet No. 7.407
SWING SERVICE RIDER

Applicability:
The bill for Transportation Service supplied to a Customer in any Billing Period shall be adjusted
as follows:

The Swing Service factors for the period from the first billing cycle for each Company Operating
| Unit for the period of January 20254 through the last billing cycle for December 20254 are as

follows:

Rate Schedule Rates per Therm
REST-1 $0,19522044
REST-2 $0.20002485
REST-3 $0,.23212328
GTS-1 $0.17384137+
GTS-2 $0.1 7801804
GTS-3 $0.1773796
GTS-4 $0.1783804+
GTS-5 $0.176849
GTS-6 $0.1661744
GTS-7 $0. 16945.
GTS-8A $0.1568693
GTS-8B $0.1571 44
GTS-8C $0.163448
GTS-8D $0.163956
CoM EP
COM-NGYyt—__§_______ 9.1646
COM-OLT $0.1367

Definitions
This surcharge allocates a fair portion of Upstream Capacity Costs and expenses associated with
the provision of Swing Service to transportation Customers in accordance with FPSC approval.

Issued by: Jeffrey Sylvester, Chief Operating Officer Effective: January+ 2024
Florida Public Utilities Company

ORDER NO. PSC-2024-0487-TRF-GU Attachment B
DOCKET NO. 20240135-GU Page | of 1
PAGE 7

Florida Public Utilities Company

FPSC Tariff Second Revised Sheet No. 7.407
Original Volume No, 2 Cancels First Sheet No. 7.407
SWING SERVICE RIDER

Applicability:
The bill for Transportation Service supplied to a Customer in any Billing Period shall be adjusted
as follows:

The Swing Service factors for the period from the first billing cycle for each Company Operating
Unit for the period of January 2025 through the last billing cycle for December 2025 are as

follows:
Rate Schedule Rates per Therm
REST-1 $0.1952
REST-2 $0.2000
REST-3 $0.2321
GTS-L $0.1738
GTS-2 $0,1780
GTS-3 $0.1773
GTS-4 $0.1783
GTS8-5 $0,1768
GTS-6 $0, 1661
GTS-7 $0.1694
GTS-8A $0.1568
GTS-8B $0.1571
GTS-8C $0.1634
| GTS-8D $0.1639
COM-OLT $0.1367

Definitions
This surcharge allocates a fair portion of Upstream Capacity Costs and expenses associated with
the provision of Swing Service to transportation Customers in accordance with FPSC approval.

Issued by: Jeffrey Sylvester, Chief Operating Officer Effective:
Florida Public Utilities Company