Florida Public Service Commission native order document 03200-2023

FILED 5/15/2023
DOCUMENT NO. 03200-2023
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Petition for rate increase by Peoples Gas
System, Inc.
In re: Petition for approval of 2022
depreciation study, by Peoples Gas System,
Inc.
In re: Petition for approval of depreciation rate
and subaccount for renewable natural gas
DOCKET NO. 20230023-GU
DOCKET NO. 20220219-GU
DOCKET NO. 20220212-GU
facilities leased to others, by Peoples Gas 	ORDER NO. PSC-2023-0157-PCO-GU
System, Inc. 	ISSUED: May 15, 2023
-~-~-------------~
The following Commissioners participated in the disposition of this matter:
ANDREW GILES FAY, Chairman
ART GRAHAM
GARYF.CLARK
MIKE LAROSA
GABRIELLA P ASSIDOMO
ORDER SUSPENDING REQUEST FOR RATE INCREASE
AND ALL ASSOCIATED TARIFF REVISIONS
BY THE COMMISSION:
Background
On April 4, 2023, Peoples Gas System, Inc. (PGS or Company) filed a petition in Docket
No. 20230023-GU seeking our approval of a rate increase and associated depreciation rates. PGS
is a natural gas local distribution company providing sales a nd transportation delivery of natural
gas, and is a public utility subject to our regulatory jurisdiction under Section 366.02, Florida
Statutes (F.S.). As a wholly owned subsidiary of TECO Gas Operations, Inc., PGS currently
serves approximately 470,000 residential, commercial, industrial, and electric power generation
customers in 39 counties.
PGS requested an increase of approximately $139.3 million in base rates. Of that amount,
about $11.7 million is associated with revenue requirements transferred from the Cast Iron/Base
Steel Replacement Rider (CI/BSR). The remaining $127.6 million is necessary, according to
PGS, for the Company to earn a fair return on its investme nt. PGS ba sed its request on a 13-
month average rate ba se of $2.4 billion for the projected test year ending December 31, 2024.
The requested overall rate of return is 7.42 percent based on a mid-point return on equity of
11. 00 percent.

ORDER NO. PSC-2023-0157-PCO-GU
DOCKET NOS. 20230023-GU, 20220219-GU, 20220212-GU
PAGE 2
On December 15, 2022, PGS filed a petition in Docket No. 20220212-GU (RNG
Depreciation Docket) seeking approval of a new depreciation rate and subaccount for renewable
natural gas facilities leased to others. On December 28, 2022, PGS filed a petition seeking
approval of the Company’s 2022 Depreciation Study in Docket No. 20220219-GU (Depreciation
Study Docket). On April 4, 2023, PGS filed a motion seeking to consolidate the RNG
Depreciation Docket, the Depreciation Study Docket, and the rate proceeding in Docket No.
20230023-GU. By Order No. PSC-2023-0128-PCO-GU, issued April 12, 2023, the three dockets
were consolidated.
This Order addresses the suspension of PGS’s proposed final rates and charges. PGS did
not request interim rate relief in this proceeding.
The Company’s last rate case, in Docket No. 20200051-GU, was resolved by our
approval of a settlement agreement (2020 Agreement).1 The Commission-approved 2020
Agreement allowed PGS to generate an additional $58 million in revenues for the projected test
year ended December 31, 2021. The 2020 Agreement also authorized a return on equity of 9.90
percent. The 2020 Agreement will expire on December 31, 2023.
Pursuant to Sections 366.06(2) and (4), F.S., PGS requested this rate case be considered
using our hearing process. Accordingly, in compliance with Section 366.06(2), F.S., an
administrative hearing has been scheduled for August 29 through September 1, 2023. We have
jurisdiction over this request under Section 366.06, F.S.
Decision
The requested permanent increases in rates and charges for PGS are hereby suspended to
allow staff and the parties time to analyze the case and for us to conduct an administrative
hearing.
Pursuant to Section 366.06(3), F.S., we may withhold consent to the operation of all or
any portion of a new rate schedule, delivering to the utility requesting such a change, a reason, or
written statement of 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 Peoples Gas System’s request
for a $139.3 million rate increase and all associated tariff revisions are hereby suspended
pending a final decision in this docket. It is further
ORDERED that this docket shall remain open pending final resolution of Peoples Gas
System’s petition for a permanent rate increase.
1Order No. PSC-2020-0485-FOF-GU, issued December 10, 2020, in Docket No. 20200051- GU, In re: Petition for
rate increase by Peoples Gas System.

ORDER NO.PSC -2023-0157-PCO-GU
DOCKET NOS. 20230023 -GU, 202202 19-GU, 20220212-GU
P AGE3
MRT
By ORDER of the Florida Public Serv ice Co mmi ssion this 15th da y of May, 2023.
JJ
Florida Pub li c S rvice Co mmi ss ion
2540 Shuma rd Oak Bou levard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.com
Co pies furni shed: 	A copy of this document is
provided to the parties of record at the time of
issuance and, if appl icable, interested persons.

ORDER NO. PSC-2023-0157-PCO-GU
DOCKET NOS. 20230023-GU, 20220219-GU, 20220212-GU
PAGE 4
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
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.
Any 	party 	adversely 	affected 	by 	this 	order, 	which 	is 	preliminary, 	procedural 	or
intermediate in nature, may request: (1) reconsideration within 10 days pursuant to Rule 25-
22.0376, Florida Administrative Code; or (2) judicial review by the Florida Supreme Court, in
the case of an electric, gas or telephone utility, or the First District Court of Appeal, in the case
of a water or wastewater utility. 	A motion for reconsideration shall be filed with the Office of
Commission Clerk, in the form prescribed by Rule 25-22.0376, Florida Administrative Code.
Judicial review of a preliminary, procedural or intermediate ruling or order is available if review
of the final action will not provide an adequate remedy. Such review may be requested from the
appropriate court, as described above, pursuant to Rule 9.100, Florida Rules of Appellate
Procedure.