Florida Public Service Commission native order document 01682-2024

FILED 4/8/2024
DOCUMENT NO. 01682-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Petition to implement long-term debt 	DOCKET NO. 20240028-GU
cost true-up mechanism, by Peoples Gas 	ORDER NO. PSC-2024-0090-PCO-GU
S stem, Inc. 	ISSUED: April 8, 2024
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The following Commissioners participated in the disposition of this matter:
BY THE COMMISSION:
MIKE LA ROSA, Chairman
ARTGRAHAM
GARY F. CLARK
ANDREW GILES FAY
ORDER SUSPENDING TARIFF
Background
Peoples Gas System, Inc. (PGS or Company) is a wholly-owned subsidiary of TECO Gas
Operations, Inc., which is a subsidiary of TECO Energy, Inc., which is a wholly-owned
subsidiary of Emera United States Holdings, Inc., which is a wholly-owned subsidiary of Emera
Incorporated. 	PGS owns and operates natural gas distribution facilities in Florida and provides
service to 470,000 customers in 39 of Florida' s 67 counties. The Company 's current rates were
approved in Docket No. 20230023-GU which included approval of the Long-Term Debt True-
Up Mechanism (LTD True-Up Mechanism) to make adjustments to the cost rate of long-term
debt without the need of a new rate case. 1
On February 2, 2024, PGS filed a petition to implement the aforementioned LTD True-
Up Mechanism. The LTD True-Up Mechanism would allow the Company to make a one-time
adjustment to its projected cost of long-term debt for the projected test year ending December 31,
2024, to reflect the actual cost of PGS' s inaugural long-term debt issuance.
In its petition, PGS requested our approval of a long-term debt cost rate increase from
5.54 percent to 5.64 percent, which would increase the weighted average cost of capital from
7.02 percent to 7.05 percent, and results in a base rate revenue requirement increase of $874,085.
The Company also requested our approval of the updated base rates a nd charges and associated
tariffs, effective for the first billing cycle of June 2024. PGS also requested that we specify the
amount of incremental revenue requirement from January 1, 2024, to the effective date of the
Company' s updated 2024 tariffs to be deferred by the Company for recovery through the Cast
'Order No. PSC-2023-0388-FOF-GU, i ss ued December 27, 2023, in Docket No.20230023-GU, In re: Petition for
rate increase by Peopl es Gas Syste m, Inc.

ORDER NO. PSC-2024-0090-PCO-GU
DOCKET NO. 20240028-GU
PAGE 2
Iron/Bare Steel Replacement Rider for 2025 as approved in Order No. PSC-2023-0388-FOF-
GU. 2
During the review process, our staff issued two data requests to PGS. The first data
request was issued on February 13, 2024, and the Company’s response was received on February
23, 2024.3 The second data request was issued on February 29, 2024, and a response was
received on March 11, 2024. Commission staff needs additional time to review the petition and
gather all pertinent information in order to present us with an informed recommendation. We
have jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and 366.06,
Florida Statutes (F.S.).
Decision
The proposed LTD True-Up Mechanism rate and associated tariff shall be suspended to
allow Commission staff sufficient time to review the petition and gather all pertinent information
in order to present us with an informed recommendation on the tariff proposal.
Pursuant to Section 366.06(3), F.S., we may withhold consent to the operation of all or
any portion of the new rate schedules, delivering to the utility requesting such a change a reason
or written statement of a good cause for doing so within 60 days. We find that the reason stated
above is a good cause consistent with the requirement of Section 366.06(3), F.S.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that People Gas System, Inc.’s
proposed Long-Term Debt True-Up Mechanism shall be suspended to allow Commission staff
sufficient time to review the petition and gather all pertinent information in order to present us
with an informed recommendation.
ORDERED that this docket shall remain open pending our decision on the proposed tariff
revision.
2Id.
3Document No. 00892-2024

ORDER NO. PSC-2024-0090-PCO-GU
DO CKET NO. 20240028- GU
PAGE 3
By ORDER o f th e Fl o rid a Public Service Comm iss ion this 8th day of April. 2024.
MRT
AD AM
Fl orida Publi c Service Commission
2540 Shumard Oak Bo ul eva rd
Ta ll ahassee, Florida 32399
(850) 4 13-6770
www. nor id apsc.com
Copies furni she d: 	A copy of thi s document is
provided to the parti es of reco rd at the time of
iss ua nc e a nd , if app li cable, interested person s.
NOTICE OF FURTHER PROCEEDINGS OR JUDIC IA L R EV IEW
The Fl o rid a Pub li c Serv ice Comm iss ion 	is required by Section 	120.569( I) , Florida
Statutes, to no ti fy parties of any administrati ve hearing or judicia l review of Co mmi ss ion o rd ers
th at is ava il a bl e under Sections 120.57 or 120.68, Flor id a Statutes, as we ll as the procedures and
time 	limits th at apply. 	Thi s notice should not be construed to mean a ll requests for an
ad ministrative hea rin g or judic ial rev iew w ill be granted or re s ult in th e re li ef soug ht.
Medi a ti on may be ava il ab le on a case-by-case ba sis. 	If mediati on is conducted, it does
not affect a s ub stantia ll y interested person's right to a hear in g.
Any 	pa rt y adversely affected 	by 	thi s 	order, w hi ch 	is 	preliminary, 	procedura l or
intermediate in nature, may request : ( I) reconsiderati on within IO da ys pursuant to Rul e 25-
22.0376, Flo rid a Admin istrative Co de ; or (2) judicial rev iew by the Flor id a Supre me Court, in
th e case of an electric, gas or tel e ph one utility, or th e First Di strict Court of Appea l, in the case
of a water or wastewater utility. 	A mot ion for recons id eration sha ll be fil ed with th e Office of
Co mmi ss ion Clerk. in th e form prescribed by Rui c 25-22 .0376. Flo rid a Admin istrati ve Code.
Judicial re view of a preliminary , procedural or intermediate ruling or o rd er is a va il able if rev iew
of the final ac ti on w ill not prov ide an ade qu ate re medy. Such review ma y be requested fr om th e
appropriate co urt. as de sc ribed above. pursua nt to Ruic 9.100, Florida Rul es of Appe ll ate
Proced ur e.