The Florida Public Service Commission (FPSC) has approved a settlement agreement that addresses the base rate increase petition filed by Peoples Gas System, Inc. (PGS). The settlement was reached through cooperation between PGS, the Office of Public Counsel, and the Florida Industrial Power Users Group, and it is set to provide regulatory stability for both customers and the utility until the end of 2028.
The approved settlement reduces the requested revenue increases for the coming years. For 2026, the total requested revenue requirement increase was lowered from about $103.6 million to $66.7 million. The net revenue increase for 2027 was also reduced from roughly $26.7 million to $25 million. There is a possibility of an additional adjustment of up to $5 million in 2028 to support pressure and capacity improvements, but this would be subject to a future Commission review.
PGS’s requested Return on Common Equity was decreased from 11.1% to 10.3%, with an equity ratio set at 54.7%. According to the agreement, “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.” Additionally, the settlement establishes a minimum term through December 2028, aiming to create rate predictability for customers.
The Commission stated, “The Commission’s approval resolves all issues in this case.” Further information is available on the FPSC’s website by searching Docket No. 20250029-GU.
PGS currently serves about 508,000 customers in 43 counties throughout Florida.
