The Florida Public Service Commission (FPSC) has approved a settlement agreement addressing the base rate increase petition filed by Peoples Gas System, Inc. (PGS). The agreement was reached through collaboration between PGS, the Office of Public Counsel, and the Florida Industrial Power Users Group. It aims to provide regulatory stability for both the utility and its customers through 2028.
The settlement reduces the total requested revenue increase for 2026 from about $103.6 million to $66.7 million. For 2027, the net revenue increase will be $25 million instead of the originally requested $26.7 million. There is also a provision for a potential adjustment of up to $5 million in 2028 to support pressure and capacity improvements, which would be considered in a future commission proceeding.
PGS’s requested Return on Common Equity was reduced from 11.1% to 10.3%, with an equity ratio of 54.7%. The agreement is designed to allow PGS the opportunity to earn a reasonable return on its rate base while continuing to provide safe and reliable natural gas service.
The settlement establishes a minimum term through December 2028, aiming to ensure rate predictability for customers.
The Commission’s approval resolves all outstanding issues in the case. PGS currently provides natural gas service to about 508,000 customers across 43 counties in Florida. Further details can be found by searching Docket No. 20250029-GU on the FPSC’s website.
