Florida Public Service Commission native order document 08517-2024

Order No. PSC-2024-0367-PAA-GUFlapubserv

Full text

FILED 8/19/2024
DOCUMENT NO . 08517-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Joint petition by Peoples Gas System,
Inc. and Florida Public Utilities Company for
a 	roval of s ecial contract.
DOCKET NO. 20240094-GU
~~---~------------
ORDER NO. PSC-2024-0367-PAA-GU
ISSUED: August 19 , 2024
The following Commissioners participated in the disposition of this matter:
MIKE LA ROSA, Chairman
ARTGRAHAM
GARY F. CLARK
ANDREW GILES FAY
GABRIELLA P ASSIDOMO
NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING SPECIAL CONTRACT
BY THE COMMISSION:
NOTICE is hereby given by the Florida Public Service Commission that the action
discussed herein is preliminary in nature and will become final unless a person whose interests
are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029,
Florida Administrative Code (F.A.C.).
BACKGROUND
On, May 5, 2024, Peoples Gas System (Peoples) and Florida Public Utilities Company
(FPUC) (jointly, Petitioners) filed a joint petition for approval of a special contract (2024 Special
Contract). Under the terms of the Special Contract, Peoples would provide FPUC with firm gas
transportation 	service 	for 	a 	seven-month 	term 	commencing on 	September 	1, 	2024, 	a nd
terminating on April 1, 2025. 	Peoples and FPUC own and operate natural gas facilities in
Florida and are subject to our regulatory jurisdiction pursuant to Section 366.06, Florida Statutes
(F.S.).
In 2021, Peoples and FPUC had a transportation agreement (2021 Agreement) that did
not require our approval because the terms and conditions did not deviate from Peoples'
approved tariff. Under the 2021 Agreement, FPUC received service under Peoples' Interruptible
Service (IS) rate schedule. 	Pursuant to the 2021 Agreement, Peoples transported natural gas
from the Florida Gas Transmission's (FGT) interstate pipeline at the PGS-Jacksonville main gate
to the Radio Avenue Interconnect into the Callahan Pipeline. The Callahan Pipeline is a 16-inch
steel pipeline that was constructed in 2019 to allow FPUC a nd Peoples to expand natural gas
service in Nassau and Duval counties.
In September of 2022, Peoples and FPUC filed a joint petition for approval of a special
contract (2022 Special Co ntract). Our approval was required because the terms and conditions
deviated from Peoples' approved tariff. 	The receipt points, delivery points, and points of
delivery remained the same as in the 2021 transportation agreement. The Special Contract had a
term from November 1, 2022, until June 1, 2024. 	The 2022 Special Contract extended the
original contract to continue to allow Peoples to provide FPUC with firm natural gas service for
ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU
PAGE 2
a limited duration and obtain a fixed monthly reservation fee for the service provided. Upon the
expiration of the existing contract in June, PGS ceased engaging in any obligations it had under
that contract as FPUC has no rights to that capacity since the contract terminated and FPUC did
not arrange a new contract with PGS in the interim. We approved the Special Contract by Order
No. PSC-2022-0374-PAA-GU. 1
During the evaluation of the petition, data requests to Peoples and FPUC were issued.
Responses from FPUC were received on June 27, 2024. Responses from Peoples were received
on June 27, 2024. We have jurisdiction over this matter pursuant to Sections 366.04, 366.05, and
366.06, F.S.
DECISION
We approved a 2022 Special Contract between Peoples and FPUC. 	In May 2024, with
the natural expiration of the 2022 Special Contract approaching, FPUC sought out Peoples for
modification of the 2022 Special Contract which resulted in the proposed 2024 Special Contract.
The term of the contract is for 7 months with a negotiated monthly charge for the reservation of
firm capacity and transportations service on Peoples’ distribution system and a daily maximum
transportation quantity. The receipt points, delivery points, and points of delivery remained the
same as in the 2022 Special Contract. 	Similarly with the 2022 Special Contract, FPUC will
recover its payment to Peoples through the Purchased Gas Adjustment and from transportation
customers that utilize the alternative supply in Nassau County. This contract would continue to
generate revenues for Peoples, benefitting Peoples’ general body of rate payers.
The purpose of the 2024 Special Contract remains the same as the prior 2022 Special
Contract. 	Typically, FPUC obtains its gas from the Transco Zone 5 for its Nassau County
operations. 	FPUC has stated that although the market has changed since the last transportation
agreement, during the winter months natural gas prices remain highly volatile. 	The agreement
with PGS allows FPUC an alternative to Transco Zone 5 with an estimated savings of more than
$1 million to FPUC’s customers and transportation customers over the 7-month term proposed in
the 2024 Special Contract.2
The proposed 2024 Special Contract for a 7-month term is a much shorter time period
than the 2022 Special Contract term of 19 months. FPUC indicated that based on the commodity
prices it would see savings up to March 2025. For the time period after March 2025, FPUC will
reassess forward commodity prices and may seek PGS for continued service. 	If the contract is
not renewed, FPUC indicated it would return to using firm Southern Natural Gas Company
(SONAT) capacity for its supply needs. 	SONAT is an interstate natural gas pipeline which
brings gas from the Louisiana Gulf of Mexico cost to the southeastern United States, including
Florida.
Based on our review or the petition and responses to data requests, we find that the
proposed Special Contract is reasonable, facilitates the delivery of natural gas into Nassau
County, and benefits FPUC’s and Peoples’ general body of ratepayers. Therefore, we approve
the proposed Special Contract between Peoples and FPUC effective September 1, 2024.
1 Order No. PSC-2022-0374-PAA-GU, issued November 4, 2022, in Docket No. 20220159-GU, In re: Petition for
approved of special contract with Florida Public Utilities Company, by Peoples Gas System, Inc.
2 FPUC Responses to Staff’s First Data Request, Document No. 07010-2024, Response No. 3
O RD ER N O. P SC -20 24 -0367-PAA-GU
DOC K ET N O. 20 24009 4-G U
PAGE3
Based on the fo regoing, it is
ORD ERE D by the Florida Public Service Co mm issio n that th e j oint petition by Pe op les
Gas System, Inc. and Flori da Pub li c U tili ties Co mpany for appro va l of a Special Contract is
hereby gra nted . It is further
O RD ERE D th at the effecti ve date of the Sp ec ial Contract is Se ptember I , 2024. 	It is
fu rther
ORDE RED that the provisions of this Order, issued as proposed age ncy actio n, sha ll
become fi nal and effec ti ve upon the issuan ce of a Consummating Order unless an a pp ropriate
petition, in the fo rm provided by Rule 28-106.20 I, F.A.C ., is received by the Commi ss ion Clerk,
2540 Shumard Oak Bo ul eva rd, Ta ll ahassee, Fl orida 32399-085 0, by th e cl ose of business on the
date set fo rth in the "Not ice o f Further Pro cee din gs" atta ch ed hereto. 	It is further
ORD ERE D that if no protest is fil ed by a person wh ose substantial interests ar e affected
witin 2 1 days of iss uanc e of t hi s Order, this do ck et shall be closed upon the issuan ce of a
Consu mmatin g Or de r.
SBr
By O RD ER of the Florida Public Service C ommi ssion this 19th da y of August, 202 4.
/Kg-	A	-	N	_	_	_	_	_
Comm iss ion Clerk
Flo ri da Pub li c Se rvice Co mmi ssio n
2540 Shu mard Oak Bo ul evar d
Ta ll ahassee, Florida 32399
(850) 41 3-6770
·www. fl oridapsc.com
Cop ies furni shed: 	A copy of this document is
provided to the parti es of reco rd at the time of
issuan ce and, if app li ca bl e, interested pe rsons.
NO TI CE OF FURTHER PR OCEE DINGS OR JU DI CIAL REV I EW
The Flor ida Publi c Service Co mmission is re quired by Sec ti on 	120.569( 1), Florida
Statutes, to notify parti es of any administra ti ve h ea ring that is ava il able un de r Sectio n 120.57,
Flo ri da Statutes, as we ll as th e procedures and time limits that apply. 	Thi s n ot ice should not be
co nstrued to m ean a ll requ es ts fo r an admini st ra ti ve h ea ring will be grant ed or result in the re li ef
so ugh t.
Me dia ti on may be ava il a bl e on a case -by-case basi s. 	If mediation is conducted, it does
not affect a substantia ll y interested person's right to a h ea ring.
ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU
PAGE 4
The action proposed herein is preliminary in nature. Any person whose substantial
interests are affected by the action proposed by this order may file 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 September 9, 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/these docket(s) 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-2024-0367-PAA-GU
DOCKET NO. 20240094-GU
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OCR transcription for search; preserved printed pages are authoritative

FILED 8/19/2024
DOCUMENT NO. 08517-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Joint petition by Peoples Gas System, DOCKET NO. 20240094-GU
Inc. and Florida Public Utilities Company for | ORDER NO. PSC-2024-0367-PAA-GU
approval of special contract. ISSUED: August 19, 2024

The following Commissioners participated in the disposition of this matter:

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

NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING SPECIAL CONTRACT

BY THE COMMISSION:

NOTICE is hereby given by the Florida Public Service Commission that the action
discussed herein is preliminary in nature and will become final unless a person whose interests
are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029,
Florida Administrative Code (F.A.C.).

BACKGROUND

On, May 5, 2024, Peoples Gas System (Peoples) and Florida Public Utilities Company
(FPUC) (jointly, Petitioners) filed a joint petition for approval of a special contract (2024 Special
Contract). Under the terms of the Special Contract, Peoples would provide FPUC with firm gas
transportation service for a seven-month term commencing on September 1, 2024, and
terminating on April 1, 2025. Peoples and FPUC own and operate natural gas facilities in
Florida and are subject to our regulatory jurisdiction pursuant to Section 366.06, Florida Statutes
(F.S.).

In 2021, Peoples and FPUC had a transportation agreement (2021 Agreement) that did
not require our approval because the terms and conditions did not deviate from Peoples’
approved tariff. Under the 2021 Agreement, FPUC received service under Peoples’ Interruptible
Service (IS) rate schedule. Pursuant to the 2021 Agreement, Peoples transported natural gas
from the Florida Gas Transmission’s (FGT) interstate pipeline at the PGS-Jacksonville main gate
to the Radio Avenue Interconnect into the Callahan Pipeline. The Callahan Pipeline is a 16-inch
steel pipeline that was constructed in 2019 to allow FPUC and Peoples to expand natural gas
service in Nassau and Duval counties.

In September of 2022, Peoples and FPUC filed a joint petition for approval of a special
contract (2022 Special Contract). Our approval was required because the terms and conditions
deviated from Peoples’ approved tariff. The receipt points, delivery points, and points of
delivery remained the same as in the 2021 transportation agreement. The Special Contract had a
term from November 1, 2022, until June 1, 2024. The 2022 Special Contract extended the
original contract to continue to allow Peoples to provide FPUC with firm natural gas service for

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU
PAGE 2
a limited duration and obtain a fixed monthly reservation fee for the service provided. Upon the
expiration of the existing contract in June, PGS ceased engaging in any obligations it had under
that contract as FPUC has no rights to that capacity since the contract terminated and FPUC did
not arrange a new contract with PGS in the interim. We approved the Special Contract by Order
No. PSC-2022-0374-PAA-GU. 1
During the evaluation of the petition, data requests to Peoples and FPUC were issued.
Responses from FPUC were received on June 27, 2024. Responses from Peoples were received
on June 27, 2024. We have jurisdiction over this matter pursuant to Sections 366.04, 366.05, and
366.06, F.S.
DECISION
We approved a 2022 Special Contract between Peoples and FPUC. 	In May 2024, with
the natural expiration of the 2022 Special Contract approaching, FPUC sought out Peoples for
modification of the 2022 Special Contract which resulted in the proposed 2024 Special Contract.
The term of the contract is for 7 months with a negotiated monthly charge for the reservation of
firm capacity and transportations service on Peoples’ distribution system and a daily maximum
transportation quantity. The receipt points, delivery points, and points of delivery remained the
same as in the 2022 Special Contract. 	Similarly with the 2022 Special Contract, FPUC will
recover its payment to Peoples through the Purchased Gas Adjustment and from transportation
customers that utilize the alternative supply in Nassau County. This contract would continue to
generate revenues for Peoples, benefitting Peoples’ general body of rate payers.
The purpose of the 2024 Special Contract remains the same as the prior 2022 Special
Contract. 	Typically, FPUC obtains its gas from the Transco Zone 5 for its Nassau County
operations. 	FPUC has stated that although the market has changed since the last transportation
agreement, during the winter months natural gas prices remain highly volatile. 	The agreement
with PGS allows FPUC an alternative to Transco Zone 5 with an estimated savings of more than
$1 million to FPUC’s customers and transportation customers over the 7-month term proposed in
the 2024 Special Contract.2
The proposed 2024 Special Contract for a 7-month term is a much shorter time period
than the 2022 Special Contract term of 19 months. FPUC indicated that based on the commodity
prices it would see savings up to March 2025. For the time period after March 2025, FPUC will
reassess forward commodity prices and may seek PGS for continued service. 	If the contract is
not renewed, FPUC indicated it would return to using firm Southern Natural Gas Company
(SONAT) capacity for its supply needs. 	SONAT is an interstate natural gas pipeline which
brings gas from the Louisiana Gulf of Mexico cost to the southeastern United States, including
Florida.
Based on our review or the petition and responses to data requests, we find that the
proposed Special Contract is reasonable, facilitates the delivery of natural gas into Nassau
County, and benefits FPUC’s and Peoples’ general body of ratepayers. Therefore, we approve
the proposed Special Contract between Peoples and FPUC effective September 1, 2024.
1 Order No. PSC-2022-0374-PAA-GU, issued November 4, 2022, in Docket No. 20220159-GU, In re: Petition for
approved of special contract with Florida Public Utilities Company, by Peoples Gas System, Inc.
2 FPUC Responses to Staff’s First Data Request, Document No. 07010-2024, Response No. 3

O RD ER N O. P SC -20 24 -0367-PAA-GU
DOC K ET N O. 20 24009 4-G U
PAGE3
Based on the fo regoing, it is
ORD ERE D by the Florida Public Service Co mm issio n that th e j oint petition by Pe op les
Gas System, Inc. and Flori da Pub li c U tili ties Co mpany for appro va l of a Special Contract is
hereby gra nted . It is further
O RD ERE D th at the effecti ve date of the Sp ec ial Contract is Se ptember I , 2024. 	It is
fu rther
ORDE RED that the provisions of this Order, issued as proposed age ncy actio n, sha ll
become fi nal and effec ti ve upon the issuan ce of a Consummating Order unless an a pp ropriate
petition, in the fo rm provided by Rule 28-106.20 I, F.A.C ., is received by the Commi ss ion Clerk,
2540 Shumard Oak Bo ul eva rd, Ta ll ahassee, Fl orida 32399-085 0, by th e cl ose of business on the
date set fo rth in the "Not ice o f Further Pro cee din gs" atta ch ed hereto. 	It is further
ORD ERE D that if no protest is fil ed by a person wh ose substantial interests ar e affected
witin 2 1 days of iss uanc e of t hi s Order, this do ck et shall be closed upon the issuan ce of a
Consu mmatin g Or de r.
SBr
By O RD ER of the Florida Public Service C ommi ssion this 19th da y of August, 202 4.
/Kg-	A	-	N	_	_	_	_	_
Comm iss ion Clerk
Flo ri da Pub li c Se rvice Co mmi ssio n
2540 Shu mard Oak Bo ul evar d
Ta ll ahassee, Florida 32399
(850) 41 3-6770
·www. fl oridapsc.com
Cop ies furni shed: 	A copy of this document is
provided to the parti es of reco rd at the time of
issuan ce and, if app li ca bl e, interested pe rsons.
NO TI CE OF FURTHER PR OCEE DINGS OR JU DI CIAL REV I EW
The Flor ida Publi c Service Co mmission is re quired by Sec ti on 	120.569( 1), Florida
Statutes, to notify parti es of any administra ti ve h ea ring that is ava il able un de r Sectio n 120.57,
Flo ri da Statutes, as we ll as th e procedures and time limits that apply. 	Thi s n ot ice should not be
co nstrued to m ean a ll requ es ts fo r an admini st ra ti ve h ea ring will be grant ed or result in the re li ef
so ugh t.
Me dia ti on may be ava il a bl e on a case -by-case basi s. 	If mediation is conducted, it does
not affect a substantia ll y interested person's right to a h ea ring.

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU
PAGE 4
The action proposed herein is preliminary in nature. Any person whose substantial
interests are affected by the action proposed by this order may file 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 September 9, 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/these docket(s) 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-2024-0367-PAA-GU
DOCKET NO. 20240094-GU

PAGE 5

As used herein, the following terms shall have the meanings set forth below. Capitalized

terms used herein, but not defined below, have the meanings given for such terms in PGS’s FPSC

Tariff.

"Business Day" means the Days Monday through Friday (excluding any federal banking
holiday falling on any such Day).

“Callahan Intrastate Pipeline” means 16-inch steel pipeline with a Maximum
Allowable Operating Pressure (MAOP) of at least 1250 psig extending from the outlet
of the Southern Natural Gas Company’s Cypress mainline measurement and flow
control facilities in Nassau County Florida in the vicinity of the intersection of the
Cypress Pipeline and Crawford Road (approximately 4.9 miles west of SR 200 on
Crawford Road) to its terminus at a point of interconnection with the Fernandina Beach
Line at or near the intersection of U.S. Highway 17 and Radio Avenue, together with
necessary metering and other required facilities for Peninsula Pipeline Company, Inc.
and SeaCoast Gas Transmission, L.L.C. to deliver gas to the Fernandina Beach Line.

“Day” means “Delivery Gas Day” as defined in FGTs FERC Tariff.

“EGT” means Florida Gas Transmission Company, LLC, a Delaware limited liability
company, its successors, and assigns.

"EPSC" means the Florida Public Service Commission or any successor agency.
"Maximum Delivery Quantity" or “MDQ” means the maximum amount of Gas that PGS is

obligated to cause to be delivered to Shipper pursuant to this Agreement on any Day at
the PGS Delivery Point(s), and is stated in Appendix B.

"Maximum Transportation Quantity" or “MTQ” means the maximum amount of Gas that
PGS shall be obligated to receive pursuant to this Agreement on any Day at the PGS

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU

PAGE 6

>ection z.1 Lerm. Supject to all otner provisions, conaitions, ana limitations nereor (inciuaing,
without limitation, Section 8.2), this Agreement shall be effective commencing on September 1,
2024 (the “Effective Date”) and shall continue until the beginning of the Day commencing on April
1, 2025 (the “Termination Date”).

ARTICLE Ill - SALES AND TRANSPORTATION SERVICE

Section 3.1 Services. PGS desires to sell and Shipper desires to purchase from PGS, from time
to time, for use at the PGS-Callahan Pipeline Interconnect, Gas in quantities which, at Shipper's
request, PGS may, in its sole discretion exercised in a not unduly discriminatory manner, agree
to sell to Shipper. Shipper also engages PGS, and PGS accepts such engagement, to receive
Gas for Shipper’s account, up to the MTQ, at the PGS Receipt Point(s), and to cause an
equivalent quantity, less the Retainage, to be redelivered to Shipper. Such sales and
transportation shall be governed by PGS’s FPSC Tariff and this Agreement.

Section 3.2 Telemetry and Other Required Equipment. [Intentionally Omitted].

ARTICLE IV — NOMINATIONS

Section 4.1 General. For each Day Shipper desires service hereunder, Shipper shall provide a
Nomination to PGS pursuant to Sections 4.2 and/or 4.3 for each meter at the PGS-Callahan
Pipeline Interconnect. The total quantity for the PGS-Callahan Pipeline Interconnect may be
Nominated to a single meter. All Nominations shall be made to PGS at its web site
(https://custactivities.peoplesgas.com’) provided that, in an emergency, a Nomination may be
delivered via facsimile using the form set forth in PGS’s FPSC Tariff. Quantities confirmed by
PGS for delivery shall be Scheduled Quantities. If requested by Shipper, PGS will allow increases
or decreases in Scheduled Quantities after the Nomination deadlines set forth in this article, if the
same can be confirmed by PGS, Transporters and Suppliers, and can be accomplished without
detriment to services then scheduled on such Day for PGS and other shippers. The maximum
quantitv PGS shall be obliaated to make available for deliverv to Shipper on anv Dav (which shall

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU

PAGE 7

PU re ee

a. The Shipper’s account number under which service is being nominated;

b. The receipt point location including applicable DRN and upstream pipeline name,
upstream pipeline package ID, including Shipper’s PGS account number, and quantity in
Therms of Gas to be tendered at each PGS Receipt Point;

c. The downstream delivery facility name, and quantity in Therms of Gas to be delivered for
each PGS Shipper account;

d. Abeginning and ending date for each nomination;

e. The upstream contract identifier;

Only nominations with clearly matching upstream Transporter identifiers (including Shipper’s
package ID and PGS account number) and downstream (PGS) identifiers will be scheduled. If
Shipper or Shipper’s Agent fails to comply with provisions (a) through (e) of this section, PGS may
not schedule commencement of service or change a prior nomination.

Section 4.5 Confirmation. If Transporter asks PGS to verify a nomination for Shipper’s account,
PGS shall confirm the lesser of such nomination, the Transportation Quantity or, in the case of
non- or partial operation of the PGS-Callahan Pipeline Interconnect, that quantity which in PGS's
reasonable judgment (after consultation with Shipper) is likely to be consumed at the PGS-
Callahan Pipeline Interconnect. PGS has no obligation with respect to verification or rejection of
quantities not requested by Shipper.

Section 4.6 Mutually Beneficial Transactions. Shipper recognizes that PGS maintains the
operation and system integrity of the PGS distribution system on a daily basis, and that PGS, as
the delivery point operator for its points of interconnection with interstate pipelines, is subject to

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU

PAGE 8

ANEPIVLE VT NOEQIEONVALIVYIN, VOAUEL ANY VITICN VIIAnUVUoelo

Section 5.1 Reservation Charge. The parties acknowledge that the Gas transportation service
to Shipper at the PGS Delivery Point contemplated by this Agreement requires access by Shipper,
through this Agreement, to PGS distribution system capacity. Each Month during the term of this
Agreement, Shipper shall pay to PGS for the reservation of firm capacity and the transportation
service on the PGS distribution system contemplated by this Agreement the sum of —

Section 5.2 Usage Charge. In addition to the Monthly reservation charge provided by Section
5.1, each Month during the term of this Agreement, Shipper shall pay to PGS for the aggregate
of all quantities delivered hereunder on each Day during the immediately preceding Month in
excess of the MDQ an amount equal to the product of (i) such aggregate excess quantities (in
Therms) and (ii)

Section 5.3 Other Charges. The rates and charges prescribed in Section 5.1 shall be subject to
taxes and fees as provided by law.

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU

PAGE 9

Peoples Gas System, Inc.

Exhibit A

Proposed Gas Transportation Agreement
Filed: May 30, 2024

Section 6.4 Errors or Estimates. If an estimate is used to determine the amount due Shipper
for purchases by PGS pursuant to an interruption or curtailment order, PGS shall make any
adjustment necessary to reflect the actual amount due Shipper on account of such purchases in
the next bill rendered to Shipper after determination of the actual amount due. An error in any
bill, credit or payment shall be corrected in the next bill rendered after the error is confirmed by
PGS.

ARTICLE VII - FAILURE TO MAKE PAYMENT

Section 7.1 Late Payment Charge. Charges for services due and rendered which are unpaid
as of the past due date are subject to a Late Payment Charge of 1.5%, except the accounts of
federal, state, and local governmental entities, agencies, and instrumentalities. A Late Payment
Charge shall be applied to the accounts of federal, state, and local governmental entities,
agencies, and instrumentalities at a rate no greater than allowed, and in a manner permitted by
applicable law.

Section 7.2 Other Remedies. If Shipper fails to remedy a delinquency in any payment within
five (5) Days after written notice thereof by PGS, PGS, in addition to any other remedy may,
without incurring any liability to Shipper and without terminating this Agreement, suspend further
deliveries to Shipper until the delinquent amount is paid, but PGS shall not do so if the failure to
pay is the result of a bona fide billing dispute, and all undisputed amounts have been paid. If PGS
fails to remedy a delinquency in providing a credit (or making payment) to Shipper for PGS
purchases pursuant to an interruption or curtailment order within five (5) Days after Shipper's
written notice thereof, Shipper, in addition to any other remedy, may, without incurring liability to
PGS and without terminating this Agreement, suspend PGS's right to retain and purchase
Shipper's Gas pursuant to an interruption or curtailment order, but Shipper shall not do so if PGS's

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU

PAGE 10

PGS:

Administrative Matters:
Peoples Gas System, Inc.

702 Franklin Street

P. ©. Box 2562

Tampa, Florida 33601-2562

ATTN: Director, Gas Supply & Trading
P: (813) 228-4691

F: (813) 228-4922

Shipper:

Administrative Matters:
Florida Public Utilities Company

208 Wildlight Avenue
Yulee, Florida 32097

ATTN: Energy Logistics
P: ( (727) 270-6998
Email: cfggascontrol@chpk.com

Email: PGSGasTransportation@tecoenergy.com

Invoices and Payment:
Peoples Gas System, Inc.

702 Franklin Street

P. ©. Box 2562

Tampa, Florida 33601-2562

ATTN: PGS Settlements

P: (813) 228-1524

F: (813) 228-4194

Email: PGSsettlements@tecoenergy.com

Invoices and Payment:
Florida Public Utilities Company

208 Wildlight Avenue

Yulee, Florida 32097

ATTN: Invoices

(Please do not mail invoices)

P: (352) 250-1648

Email: cfggascontrol@chpk.com

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU

PAGE 11

Peoples Gas System, Inc.

Exhibit A

Proposed Gas Transportation Agreement
Filed: May 30, 2024

Section 9.7 Amendments. This Agreement may not be amended except by an instrument in
writing signed by the party against which enforcement of the amendment is sought. A change in
(a) the place to which notices hereunder must be sent or (b) the individual designated as Contact
Person shall not be deemed nor require an amendment hereof provided such change is
communicated pursuant to Section 9.6. Further, the parties expressly acknowledge that the
limitations on amendments to this Agreement set forth in this section shall not apply to or
otherwise limit the effectiveness of amendments that are or may become necessary to comply
with the requirements of, or are otherwise approved by, the FPSC or its successor agency or
authority.

Section 9.8 Legal Fees. In the event of litigation between the parties hereto arising out of or in
connection with this Agreement, then the reasonable attorneys' fees and costs of the party
prevailing in such litigation shall be paid by the other party.

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU
PAGE 12

Date:

FLORIDA PUBLIC UTILITIES COMPANY

By:

Name: Daniel Noia
Title: Director, Energy Logistics

Date:

ORDER NO. PSC-2024-0367-PAA-GU
DOCKET NO. 20240094-GU
PAGE 13

POI # 16151- PGS-Jacksonville

The above point(s) may be changed by PGS from time to time on written notice to Shipper.

APPENDIX B - GAS TRANSPORTATION AGREEMENT
PGS DELIVERY POINT(S)

Gas transported or sold pursuant to this Agreement shall be delivered by PGS to Shipper
at the following point(s):

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