The Florida Public Service Commission (FPSC) has approved a settlement agreement regarding the base rate increase petition filed by Peoples Gas System, Inc. (PGS). The settlement was reached through collaboration between PGS, the Office of Public Counsel, and the Florida Industrial Power Users Group. It aims to provide regulatory certainty for both customers and the utility until the end of 2028.
Under the terms of the agreement, the total requested 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 approximately $26.7 million to $25 million. The agreement also allows for a possible adjustment of up to $5 million in 2028 to support pressure and capacity improvements, which will be subject to a future Commission proceeding.
Additionally, PGS’s requested Return on Common Equity will be reduced from 11.1% to 10.3%, with an equity ratio set at 54.7%. The settlement is designed to give PGS a chance to earn a reasonable return on its rate base while continuing to provide safe and reliable natural gas service.
The agreement sets a minimum term through December 2028, aiming to create rate predictability for customers. The Commission’s approval resolves all outstanding 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.
