Florida Public Service Commission native order document 07861-2024

OCR transcription for search; preserved printed pages are authoritative

FILED 7/26/2024
DOCUMENT NO. 07861-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for approval of transportation DOCKET NO. 20240050-GU
service agreement with Florida Public Utilities | ORDER NO. PSC-2024-0270-PAA-GU
Company by Peninsula Pipeline Company, Inc. | ISSUED: July 26, 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 FIRM TRANSPORTATION SERVICE AGREEMENT

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.

Background

On March 28, 2024, Peninsula Pipeline Company, Inc. (Peninsula) filed a petition for
approval of a firm transportation service agreement between Peninsula and Florida Public
Utilities Company (FPUC) (jointly, the parties). The transportation agreement will permit
Peninsula to provide transportation service for FPUC along the Pioneer Supply Header Pipeline
(Pioneer Header), therefore allowing FPUC to continue serving customers in Palm Beach
County, provide reinforcement, and allow for future expansion. FPUC is a local distribution
company (LDC) subject to our regulatory jurisdiction pursuant to Chapter 366, Florida Statutes
(F.S.). Peninsula operates as an intrastate natural gas transmission company as defined by
Section 368.103(4), F.S.!

Peninsula provides gas transportation service only; it does not engage in the sale of
natural gas to customers. By Order No. PSC-07-1012-TRF-GP (2007 Order), Peninsula received
our approval for an intrastate gas pipeline tariff that allows it to construct and operate intrastate

' Order No. PSC-06-0023-DS-GP, issued January 9, 2006, in Docket No. 20050584-GP, Jn re: Petition for
declaratory statement by Peninsula Pipeline Company, Inc. concerning recognition as a natural gas transmission
company under Section 368.101, F.S., et seq.

ORDER NO. PSC-2024-0270-PAA-GU
DOCKET NO. 20240050-GU
PAGE 2
pipeline facilities and to actively pursue agreements with natural gas customers.2 Pursuant to the
2007 Order, Peninsula is allowed to enter into gas transmission agreements that meet certain
criteria without our prior approval.3 However Peninsula is requesting our approval of this
proposed agreement as it does not fit any of the enumerated criteria.4 Additionally, Peninsula and
FPUC are subsidiaries of Chesapeake Utility Corporation, and agreements between affiliated
companies must be approved by us pursuant to Section 368.105, F.S., and the 2007 Order.
The Pioneer Header was constructed by Florida City Gas (FCG) to provide itself and
other local distribution companies (LDC) and industrial customers with natural gas supply in the
area in and around Palm Beach County. Currently, pursuant to a transportation agreement
between FCG and FPUC, FCG provides transportation service on the Pioneer Header pipeline to
FPUC.
The Pioneer Header is being transferred from FCG to Peninsula. This sale of the asset
does not require our review; however, the sale will not take place until after our approval of the
transportation 	service 	agreement 	between 	FCG 	and 	Peninsula 	addressed 	in 	Docket 	No.
20240051-GU. Following the transfer of the Pioneer Header from FCG to Peninsula, Peninsula
would own the pipeline. Pursuant to the petition in this docket, Peninsula is seeking our approval
of a transportation agreement with FPUC to provide natural gas transportation service along the
Pioneer Header to FPUC. The proposed transportation agreement and project map are shown as
Attachments A and B to this Order.
During the evaluation of the petition, our staff issued a data request to the parties for
which responses were received on June 14 and on June 19, 2024. We have jurisdiction over this
matter pursuant to Sections 366.05(1), 366.06, and 368.105, F.S.
Decision
The parties have proposed a firm transportation agreement that is the subject of this
docket to maintain and enhance service to the West Palm Beach area currently provided by FCG.
The parties state that the proposed agreement will allow Peninsula to serve FPUC with 900
dekatherms per day of firm transportation at three delivery points. The parties further assert that
this level of service is needed for FPUC to serve current customers and expand into serving
potential new customers with the addition of two delivery points.
The proposed firm transportation agreement between FPUC and Peninsula is contingent
on the transfer of the Pioneer Header from FCG to Peninsula. This transfer will be completed
following our review and approval of the transportation service agreement between FCG and
Peninsula addressed in Docket No. 20240051-GU.
Paragraph 11 of the petition in this docket states that the proposed monthly reservation
charge that FPUC would pay to Peninsula is similar to the rate FPUC is currently paying to FCG.
2 Order No. PSC-07-1012-TRF-GP, issued December 21, 2007, in Docket No. 070570-GP, In re: Petition for
approval of natural gas transmission pipeline tariff by Peninsula Pipeline Company, Inc.
3 Peninsula Pipeline Company, Inc., Intrastate Pipeline Tariff, Original Vol. 1, Original Sheet No. 11, Section 3.
4 Peninsula Pipeline Company, Inc., Intrastate Pipeline Tariff, Original Vol. 1, Original Sheet No. 12, Section 4.

ORDER NO. PSC-2024-0270-PAA-GU
DOCKET NO. 20240050-GU
PAGE 3
In the parties’ joint responses to our staff’s first data request, the parties clarified that the rates
have been calculated using the same methodology. However, the proposed monthly reservation
charge is higher than the current rate because Peninsula has factored in activation of two
additional delivery points to provide service to FPUC.
The proposed agreement would be effective for 20 years after its date of execution, and
extended on a year-to-year basis after this initial term, unless either party chooses to terminate
via written notice submitted 90 days prior to the expiration of the current term. Either party may
request modification of the rates or terms of the agreement, to be made effective in the next
renewed term, no less than 120 days before the expiration of the current term. However, the
parties acknowledge that any amendments to the proposed agreements would require our
approval.
FPUC would recover its monthly reservation charge payments to Peninsula through the
purchased 	gas 	adjustment 5 	(PGA) 	and 	swing 	service 	rider. 	The 	PGA 	allows 	FPUC 	to
periodically adjust the price of natural gas supplied to its customers to reflect the actual cost of
gas purchased and delivered on behalf of the customers. The swing service rider allows FPUC to
recover intrastate capacity costs from their transportation customers and is a cents per therm
charge that is included in the monthly customer gas bill of transportation customers. In a bill
calculation provided by FPUC, a residential RES-3 customer using 21 therms would see an
increase of $0.07.
Based on the parties’ representations, we hereby approve Peninsula’s transportation
service agreement with FPUC, dated March 18, 2024, included as Attachment A to this Order.
The agreement is reasonable and meets the requirements of Section 368.105, F.S. Furthermore,
the agreement benefits FPUC’s current and potential future customers through the activation of
two additional delivery points.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Peninsula Pipeline Company,
Inc.’s transportation service agreement with Florida Public Utilities Company, dated March 18,
2024, is hereby approved. It is further
ORDERED that the provisions of this Order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, Florida Administrative Code, is received by
the Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto. It
is further
ORDERED that in the event this Order becomes final, this docket shall be closed.
5 Docket No. 2024003-GU, In re: Purchased gas adjustment (PGA) true-up.

ORDER NO. PSC-2024-0270-PAA-GU
DOCKET NO. 20240050-GU
PAGE4
By ORDER of the Florida Public Service Commission this 26th day of July. 2024.
RPS
Commission
Fl orida Public 	ervice Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www.l1oridapsc.com
Copies furnished: 	A copy of this document is
provided to the parties of record at the time of
issuance and, if applicable, interested persons.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Pu blic Service Commission is required 	by Section 	120.569(1 ), Florida
Statutes. to notify parties of any administrative hearing that is avai lable under Section 120.57,
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 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 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- 10 6.20 1, 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 August 16. 2024.
ln 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 with in the
specified protest period.

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page | of 11
PAGE 5

ATTACHMENT A

Transportation Service Agreement — Pioneer Supply
Header Pipeline

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 2 of 11
PAGE 6

PENINSULA PIPELINE COMPANY, INC.
FIRM TRANSPORTATION SERVICE AGREEMENT

THIS AGREEMENT is entered into this March 18, 2024, by and between Peninsula
Pipeline Company, Inc., a corporation of the State of Delaware (herein called "Company" or “PPC”),
and Florida Public Utilities Company, a corporation of the State of Florida (herein called "Shipper" or
“FPUC™). PPC and FPUC aresometimes referred to herein individually as a“Party” and collectively as

“Parties.”
WITNESSETH
WHEREAS, Shipper desires to obtain Firm Transportation Service (“FTS”) from Company;
and
i NS Company desires to provide FTS to Shipper, in accordance with the lerms
ereof;

NOW THEREFORE, in consideration of the premises and of the mutual covenants and
agreements herein contained, the sufficiency of which is hereby acknowledged, Company and
Shipper do covenant and agree as follows:

ARTICLE I
DEFINITION

Unless otherwise defined in this Agreement, all definitions for terms used herein have the
same meaning as provided in Company's Tariff (as hereinafter defined).

“In-Service Date’ means the effective date of Company’s acquisition of the Pioneer Supply
Header Pipeline.

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 3 of 11
PAGE 7

ARTICLE II
QUANTITY & UNAUTHORIZED USE

2.1 The Maximum Daily Transportation Quantity ("MDTQ") and the Maximum Hourly
Transportation Percentage ("MHTP") shall be set forth on Exhibit A attached hereto. The
applicable MDTQ shall be the largest daily quantity of Gas, expressed in Dekatherms, which
Company is obligated to transport ona firm basis and make available for delivery for the account of
Shipper under this Agreement on any one Gas Day.

22 If, on any Day, the Shipper utilizes transportation quantities, as measured at the
Point(s) of Delivery, in excess of the established MDTQ, as shown on Exhibit A, such unauthorized
use of transportation quantities (per Dekatherm) shall be billed at a rate of 2.0 times the rate to be
charged for each Dekatherm of the MDTQ as set forth on Exhibit A of this Agreement.

ARTICLE

3.1 The Monthly Reservation Charge for Firm Transportation Service provided under
this Agreement shall be as set forth in Exhibit A of this Agreement and shall be charged to the
Shipper beginning on the In-Service Date and shall thereafter be assessed in accordance with the
terms and conditions set forth herein.

32 If, at any time after the Execution Date (as herein defined) and throughout the term of
this Agreement, the Company is required by any Governmental Authority (as that term is defined in
Section 9.10) asserting jurisdiction over this Agreement and the transportation of Gas hereunder, to
incur additional capital expenditures with regard to the service provided by Company under this
Agreement, other than any capital expenditures required to provide transportation services to any other
customer on the pipeline system serving Shipper’s facility, but including, without limitation, mandated
relocations of Company’s pipeline facilities serving Shipper’s facility and costs to comply with any
changes in pipeline safety regulations, then Shipper’s Monthly Reservation Charge shall be adjusted
and Exhibit A updated accordingly, and the new Monthly Reservation Charge shall be implemented
immediately upon the effective date of such action, subject to Commission approval of the amendment.
If Shipper does not agree to the adjusted Monthly Reservation Charge, Company shall no longer be
required to continue to provide the service contemplated in this Agreement.

33 If, during the term of this Agreement, any Governmental Authority should increase any
present tax or levy any additional or eliminate any existing tax impacting amounts billed and paid for
service provided by Company under this Agreement, such change take effect for purposes of billing
and payment under this Agreement effective as of the effective date of such modification to tax or levy.
Should an action of a Governmental Authority result in a situation where Company otherwise would
be required to provide transportation service at rates that are not just and reasonable, the Company
shall have the right to terminate this Agreement pursuant to the conditions set forth in Section E of the
Rules and Regulations of Company’s Tariff.

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 4 of 11
PAGE 8

ARTICLE IV
TERM AND TERMINATION

4.1 Subject to all other provisions, conditions, and limitations hereof, this Agreement shall
be effective upon its date of execution by both Parties (the “Execution Date”) and shall continue in
full force for an initial period of twenty (20) years from the In-Service Date (“Initial Term’). After the
Initial Term, the Agreement shall be extended on a year-to-year basis (each a "Renewed Term" and,
all Renewed Terms together with the Initial Term, the “Current Term”), unless either Party gives
written notice of termination to the other Party, not less than (90) days prior to the expiration of the
Current Term. This Agreement may only be terminated earlier in accordance with the provisions of
this Agreement and the Parties! respective rights under applicable law.

42 If, at any time after the Execution Date and throughout the term of this Agreement, the
Company makes any operational modification to the points of delivery or delivery points through
modifications by the Company or requests by the Shipper or other third party shippers, then Company
or Shipper may request the opportunity to negotiate a modification of the rates or terms of this
Agreement, and the Parties shall negotiate in good faith a modification to the Agreement.

4.3 No less than 120 days before the expiration of the Current Term, either Party may
request the opportunity to negotiate a modification of the rates or terms of this Agreement to be
effective with the subsequent Renewed Term. Neither Party is obligated to, but may, agree to any
mutually acceptable modification to the Agreement for the subsequent Renewed Term. In the event
the Parties reach agreement for a modification to the Agreement for the subsequent Renewed Term,
such agreed upon modification ("Agreement Modification") shall be set forth in writing and signed.
by both Parties prior to the expiration of the Current Term.

44 Any portion of this Agreement necessary to resolve monthly balancing and
operational controls under this Agreement, shall survive the expiration or termination of this
Agreement until such time as such monthly balancing and operational controls have been resolved.

4.5 In the event Shipper fails to pay for the service provided under this Agreement or
otherwise fails to meet Company's standards for creditworthiness set forth in Section C of the
Rules and Regulations of the Company’s Tariff or otherwise violates the Rules and Regulations
of Company's Tariff, or defaults on this Agreement, Company shall have the right to terminate
this Agreement pursuant to the conditions set forth in Section D of the Rules and Regulations of
Company's Tariff.

ARTICLE V

COMPANY'S TARIFF PROVISIONS

5.1 Company's Tariff approved by the Commission, including any amendments thereto
approved by the Commission during the term of this Agreement (“Company’s Tariff’), is
hereby incorporated into this Agreement and made a part hereof for all purposes, except to the
extent otherwise expressly provided herein. In the event of any conflict between Company's
Tariff and the specific provisions of this Agreement, the latter shall prevail, in the absence of
a Commission Order to the contrary.

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 5 of 11
PAGE 9

ARTICLE VI
J Db APP AL

6.1 Company's obligation to provide service is conditioned upon receipt and acceptance
of any necessary regulatory authorization to provide Firm Transportation Service for Shipper
in accordance with the Rules and Regulations of Company's Tariff.

ARTICLE VI
ELIVERY POINT d p

FA The Delivery Point(s) for all Gas delivered for the account of Shipper into
Company's pipeline system under this Agreement, shall be as set forth on Exhibit A attached
hereto.

7.2 The Point(s) of Delivery shall be as set forth on Exhibit A attached hereto.

73 Shipper shall cause Transporter to deliver to Company at the Delivery Point(s)
on the Transporter’s system, the quantities of Gas to be transported by Company hereunder.
Company shall have no obligation for transportation of Shipper’s Gas prior to receipt ofsuch
Gas from the Transporter at the Delivery Point(s), nor shall Company have any obligation to
obtain capacity on Transporter for Shipper or on Shipper’s behalf. The Company shall deliver
such quantities of Gas received from the Transporter at the Delivery Point(s) for Shipper's
account to Company's Point(s) of Delivery identified on Exhibit A,

ARTICLE VII
SCHEDULING AND BALANCING

8.1 Shipper shall be responsible for nominating quantities of Gas to be delivered by
the Transporter to the Delivery Point(s) and delivered by Company to the Point(s) of Delivery.
Shipper shall promptly provide notice to Company of all such nominations, Imbalances
between quantities (1) scheduled at the Delivery Point(s) and the Point(s) of Delivery, and (ii)
actually delivered by the Transporter and/or Company hereunder, shall be resolved in
accordance with the applicable provisions of the Delivery Point Operator’s tariff as set forth
in Section 8.2 below, as such provisions, and any amendments to such provisions, are
approved by the Commission.

8.2 Florida City Gas is the Delivery Point Operator (“DPO”) for all Delivery Points on the
Pioneer Supply Header Pipeline, which will be administered in accordance with the provisions of the
Transportation Service Provider's FERC Tariff and Florida City Gas’s FPSC Natural Gas Tariff
(“DPO’s Tariff”), as applicable. Resolution of Monthly Receipt or Delivery Imbalances at the Delivery
Points shall be in accordance with DPO’s Tariff as set forth on sheet number 65 through 67. By
executing this Agreement, FPUC expressly agrees it will be bound by the referenced tariff pages
including the daily and monthly balances of the ie Tariff as it may be updated from time to time.

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 6 of 11
PAGE 10

8.3 The Parties hereto recognize the desirability of maintaining a uniform rate of flow
of Gas to Shipper’s facilities over each Gas Day throughout each Gas Month. Therefore, Company
agrees to receive from the Transporter for Shipper's account at the Delivery Point(s) and deliver
to the Point(s) of Delivery up toe the MDTQ as described in Exhibit A, subject to any restrictions
imposed by the Transporter and to the provisions of Article [X of this Agreement, and Shipper
agrees to use reasonable efforts to regulate its deliveries from Company's pipeline system at a daily
rate of fiow not to exceed the applicable MDTQ for the Gas Month in question, subject to any
additional restrictions imposed by the Transporter or by Company pursuant to Company's Tariff.

ARTICLE IX
MISCELLANEOUS PROVISIONS

9.1 Notices and Other Communications. Any notice, request, demand, statement, or
payment provided for in this Agreement, unless otherwise specified, shall be sent to the Parties
hereto at the following addresses:

Company: Peninsula Pipeline Company, Inc,
500 Energy Lane, Suite 200
Dover, Delaware 19901
Attention: Contracts

Shipper:
Florida Public Utilities Company
208 Wildlight Avenue
Yulee, Florida 32097
Attention: Contracts

9.2 Headings. All article headings, section headings and subheadings in this Agreement
are inserted only for the convenience of the Parties in identification of the provisions hereof and
shall not affect any construction or interpretation of this Agreement.

93 Entire Agreement. This Agreement, including the Exhibit attached hereto, sets forth
the full and complete understanding of the Parties as of the Execution Date, and it supersedes any
and all prior negotiations, agreements and understandings with respect to the subject matter hereof.
No Party shall be bound by any other obligations, conditions, or representations with respect to the
subject matter of this Agreement.

9.4 Amendments, Neither this Agreement nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified except by an instrument in writing signed
by the Party against which enforcement of the termination, amendment, supplement, waiver or
modification shall be sought. A change in (a) the place to which notices pursuant to this Agreement
must be sent or (b) the individual designated as the Contact Person pursuant to Section 9.1 shall
not be deemed nor require an amendment of this Agreement provided such change is
communicated in accordance with Section 9.1 of this Agreement. Further, the Parties expressly

acknowledge that the limitations on amendments to this Agreement set forth in this section shall not
5

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 7 of 11
PAGE 11

apply to or otherwise limit the effectiveness of amendments that are or may be necessary to comply
with the requirements of, or are otherwise approved by, the Commission or its successor agency or
authority.

9.5 Severability. If any provision of this Agreement becomes or is declared by a court
of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full
force and effect without said provision; provided, however, that if such severability materially
changes the economic benefits of this Agreement to either Party, the Parties shall negotiate in good
faith an equitable adjustment in the provisions of this Agreement.

9.6 Waiver. No waiver of any of the provisions of this Agreement shall be deemed to
be, nor shall it constitute, a waiver of any other provision whether similar or not. No single waiver
shall constitute a continuing waiver, unless otherwise specifically identified as such in writing. No
waiver shall be binding unless executed in writing by the Party making the waiver.

9.7 Attorneys' Fees and Costs. In the event of any litigation between the Parties arising
out of or relating to this Agreement, the prevailing Party shall be entitled to recover all costs
incurred and reasonable attorneys' fees, including attorneys' fees in all investigations, trials,
bankruptcies, and. appeals.

9.8 Independent Parties. Company and Shipper shall perform hereunder as independent
parties. Neither Company nor Shipper is in any way or for any purpose, by virtue ofthis Agreement,
a partner, jomt venturer, agent, employer or employee of the other. Nothing in this Agreement
shall be for the benefit of any third person for any purpose, including, without limitation, the
establishing of any type of duty, standard of care or liability with respect to any third person.

9.9 Assignment and Transfer, No assignment of this Agreement by either Party may be
made without the prior written approval of the other Party (which approval shall not be
unreasonably withheld) and unless the assigning or transferring Party's assignee or transferee shall
expressly assume, in writing, the duties and obligations under this Agreement of the assigning or
transferring Party. Upon such assignment or transfer, as well as assumption of the duties and
obligations, the assigning or transferring Party shall furnish or cause to be furnished to the other
Party a true and correct copy of such assignment or transfer and the assumption of duties and
obligations,

9.10 Governmental Authorizations; Compliance with Law. This Agreement shall be
subject to all valid applicable state, local and federal laws, orders, directives, rules and regulations
of any governmental body, agency or official having jurisdiction over this Agreement and the
transportation of Gas hereunder (“Governmental Authority”). Company and Shipper shall comply
at all times with all applicable federal, state, municipal, and other laws, ordinances and regulations.
Company and/or Shipper will furnish any information or execute any documents required by any
duly constituted federal or state regulatory authority in connection with the performance of this
Agreement, Each Party shall proceed with diligence to file any necessary applications with any
Governmental Authorities for any authorizations necessary to carry out its obligations under this
Agreement. Inthe event this Agreement or any provisions herein shall be found contrary to or in
conflict with any applicable law, order, directive, rule or regulation, the latter shall be deemed to

6

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 8 of 11
PAGE 12

control, but nothing in this Agreement shall prevent either Party from contesting the validity of
any such law, order, directive, rule, or regulation, nor shall anything in this Agreement be
construed to require either Party to waive its respective rights to assert the lack of jurisdiction of
any governmental agency other than the Commission, over this Agreement or any part thereof. In
the event of such contestation, and unless otherwise prohibited from doing so under this Section
9.10, Company shall continue to transport and Shipper shall continue to take Gas pursuant to the
terms of this Agreement. In the event any law, order, directive, rule, or regulation shall prevent
either Party from performing hereunder, then neither Party shall have any obligation to the other
during the period that performance under the Agreement is precluded. If, however, any
Governmental Authority's modification to this Agreement or any other order issued, action taken,
interpretation rendered, or rule implemented, will have a material adverse effect on the rights and.
obligations of the Parties, including, but not limited to, the relative economic position of, and risks
to, the Parties as reflected in this Agreement, then, subject to the provisions of Sections 3.2 and 3.3
of this Agreement, the Parties shall use reasonable efforts to agree upon replacement terms that are
consistent with the relevant order or directive, and that maintain the relative economic position of,
and risks to, the Parties as reflected in this Agreement as of the Execution Date. As used herein,
"Governmental Authority" shall mean any United States federal, state, local, municipal or other
government; any governmental, regulatory or administrative agency, court, commission or other
authority lawfully exercising or entitled to exercise any administrative, executive, judicial,
legislative, police, regulatory or taxing authority or power; and any court or governmental tribunal.

@ If any Governmental Authority asserting jurisdiction over the pipeline facility
contemplated in this Agreement, issues an order, ruling, decision or regulation not
covered by Section 3.2 or 3.3 of this Agreement (including denial of necessary permits or
amendments to existing permits) related to the operation, maintenance, location, or
safety and integrity compliance, including any new or revised enforceable regulatory
classification of the pipeline facility, as applicable, which is not reasonably
foreseeable as of the Execution Date and which results in a materially adverse effect
on either Party's rights and benefits under this Agreement, each Party shall use
commercially reasonable efforts and shall cooperate with the other Party to pursue
all necessary permits, approvals and authorizations, if any, of such applicable
Governmental Authority, and to amend the terms and conditions of this Agreement,
in each case as may be reasonably required in order that provision of firm
transportation service under this Agreement shall continue; provided that neither
Party shall be required to take any action pursuant to this Section which is reasonably
likely to have a materially adverse effect on such Party's rights and benefits under
this Agreement.

Gi} If the Parties are unable or unwilling to reach agreement pursuant to this
Section 9,10, Company shall have theright to terminate this Agreement, without any
further obligations to Shipper, upon one hundred twenty (120) days’ prior written
notice to Shipper.

9.11 Applicable Law and Venue. This Agreement and any dispute arising, hereunder shall
be governed by and interpreted in accordance with the laws of the State of Florida, without regard
for conflict of laws provisions. The venue for any action, at law or in equity, commenced by either

7

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 9 of 11
PAGE 13

Party against the other and arising out of or in connection with this Agreement shall be in a court
of the State of Florida having jurisdiction.

9.12 Counterparts. This Agreement may be executed in counterparts, all of which taken
together shall constitute one and the same instrument and each of which shall be deemed an original
instrument as against any Party who has signed it.

ORDER NO. PSC-2024-0270-PAA-GU Attachment A
DOCKET NO. 20240050-GU Page 10 of 11
PAGE 14

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized officers or representatives.

COMPANY SHIPPER
Peninsula Pipeline Company, Inc. Florida Public Utilities Company
Bice Hancock
By: py tk Xytureter
William Hancock Jeffrey S. Sylvester
Title: Assistant Vice President Title: President and Chief Operating Officer

, 03/21/2024 03/20/2024

Date Date:

9

ORDER NO. PSC-2024-0270-PAA-GU
DOCKET NO. 20240050-GU
PAGE 15

EXHIBIT A TO
FIRM TRANSPORT ATIONSERVICE AGREEMENT
BETWEEN
PENINSULA PIPELINE COMPANY, INC, AND
FLORIDA PUBLIC UTILITIES COMPANY
DATED

March 18, 2024

Description of Transporter Delivery Point(s)
1. Interconnect with Florida Gas Transmission at or near Pioneer Road

Description of Point(s) of Delivery

I. At or near the intersection of SR 80 east and Seminole Pratt Whitney Road
2. Ator near the intersection of Benoist Farm Road and Pioneer Road
3. Ator near the intersection of Palms West Parkway and Southern Boulevard

Total MDTQ (Dekatherms) @pDt/Day
MHTP: a?

Total Monthly Reservation Charge: QD Dekatherm)

This charge is subject to adjustment pursuant to the terms of this Agreement.

Attachment A
Page 11 of 11

ORDER NO. PSC-2024-0270-PAA-GU Attachment B
DOCKET NO. 20240050-GU Page | of 2
PAGE 16

ATTACHMENT B

Pioneer Pipeline Map

Attachment B Page 2 of 2
DOCKET NO. 20240050-GU
ORDER NO. PSC-2024-0270-PAA-GU
PAGE 17
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Belle Glade
etith Bin
7
Wallington
L
1
Legend
Pigging Station
PENINSULA PIPELINE
Existing Pipeline to be Transferred
Pioneer System Created: 2/20/2024
0 O-
1.75
3.5
7 Miles and
StuckCity Re
Golden Lakes
Palm Beach