The Florida Public Service Commission (FPSC) has approved a settlement agreement in the base rate review for Peoples Gas System, Inc. (PGS). The agreement, reached with the involvement of PGS, the Office of Public Counsel, and the Florida Industrial Power Users Group, will be in effect through 2028.
Under the settlement, the revenue requirement increase for 2026 will be reduced from about $103.6 million to $66.7 million. For 2027, the net revenue increase will be lowered from $26.7 million to $25 million. There is also a provision for a possible adjustment of up to $5 million in 2028 to support pressure and capacity improvements, which would be considered in a future Commission proceeding.
The agreement also reduces PGS’s requested Return on Common Equity from 11.1% to 10.3%, with an equity ratio set at 54.7%. According to the settlement, “The agreement should allow PGS an opportunity to earn a reasonable return on rate base, and continue to provide its customers with safe and reliable natural gas service.” It also sets a minimum term through December 2028 to provide rate predictability for customers.
The FPSC stated that its approval “resolves all issues in this case.” PGS currently supplies natural gas service to about 508,000 customers in 43 counties across Florida.
For further details, information can be found on the FPSC’s website by searching Docket No. 20250029-GU.
