Florida Public Service Commission native order document 01270-2024

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FILED 3/22/2024 DOCUMENT NO. 01270-2024 FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Petition for approval of tariff modifications to implement transportation balancing charge rider, by Florida City Gas.
DOCKET NO. 20230110-GU ORDER NO. PSC-2024-0076-TRF-GU ISSUED: March 22, 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
ORDER APPROVING TRANSPORTATION BALANCING CHARGE RIDER
BY THE COMMISSION:
Background
On September 26, 2023, Florida City Gas (FCG or utility) filed a petition for approval of tariff modifications to implement a new transportation balancing charge rider (balancing charge or rider).
FCG is an investor-owned natural gas utility that provides service to two different types of gas supply customers: sales customers and transportation customers. Sales customers purchase gas from the utility and are charged the Purchased Gas Adjustment (PGA) for the cost of natural gas, in addition to base rates. Transportation customers are commercial and industrial customers that elect to purchase their natural gas supply from a gas marketer authorized as a third party supplier by FCG. Transportation customers negotiate directly with third party suppliers (TPS) for the purchase of the natural gas commodity and are not charged the PGA by the utility. The proposed rider is a dollar-per-therm charge that would be included in the monthly gas bill for transportation customers only.
Natural gas imbalances occur when the quantity of natural gas nominated and delivered from the source to FCG's interconnections differs from the amount of gas actually consumed by customers. Imbalances are created by sales customers and transportation customers. The utility balances the system on behalf of its sales customers; for transportation customers the TPS typically takes steps to mitigate delivery and consumption imbalances. FCG does not hold capacity on behalf of transportation customers or their TPS; therefore the TPS is responsible for transporting the natural gas and obtain firm interstate capacity to do so.
FCG is responsible for balancing the system in order to maintain the appropriate supply of natural gas and avoid imbalance penalties from interstate pipelines. The utility uses available interstate and intrastate capacity and storage to vary (swing) the level of gas to resolve system imbalances. The costs associated with the capacity and storage used to resolve imbalances are

ORDER NO. PSC-2024-0076-TRF-GU
DOCKET NO. 20230110-GU
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currently recovered solely through the PGA from sales customers. Currently, no cost recovery
mechanism exists for transportation customers, as a result, the cost of imbalances incurred by
transportation customers is subsidized by sales customers.
The proposed rider is similar to the swing service riders first implemented by Peoples
Gas System in 20001 and modified in 2015,2 and by Florida Public Utilities Company in 2016.3
The methods used to calculate the balancing charge differ slightly from the methods used to
calculate the swing service riders, but the balancing charge performs the same function of
mitigating subsidization between sales and transportation customers.
We suspended the proposed tariffs on November 9, 2023, in Order No. PSC-2023-0357-
PCO-GU. 4 FCG supplied additional information in responses to staff’s first and second data
requests on November 6, 2023 and December 21, 2023,5 respectively. This order hereby
approves the proposed rider and associated tariffs. The approved tariffs are attached to this order
as Attachment A.
We have jurisdiction over this matter pursuant to Sections 366.03, 366.04, 366.05, and
366.06, Florida Statutes (F.S.).
Decision
In its petition, FCG explained that the purpose of the proposed rider is to recover the cost
of transportation and storage fees incurred on behalf of transportation customers. Of the $12.8
million in total capacity and storage costs included in the projection for the PGA for calendar
year 2024, 6 the utility calculated that transportation customers are projected to be responsible for
about $1 million. As approved, the rider is a dollar-per-therm charge applicable to transportation
customers. The utility will book all revenues recovered from the charge as a credit to the utility’s
annual PGA filing, as discussed further in this order.
Calculation of Transportation Balancing Charge
FCG proposed to calculate the balancing charge by allocating a portion of the total
capacity and storage costs currently recovered through the PGA based on the monthly average
1 Order No. PSC-00-0184-TRF-GU, issued October 4, 2000, in Docket No. 000810, In re: Petition for approval of
modifications to tariff provisions governing transportation of customer-owned gas and tariff provisions to
implement Rule 25-7.035, F.A.C., by Tampa Electric Company d/b/a Peoples Gas System.
2 Order No. PSC-15-0570-TRF-GU, issued December 17, 2015, in Docket No. 150220-GU, In re: Petition for
approval of tariff modifications related to the swing service charge, by Peoples Gas System.
3 Order No. PSC-16-0422-TRF-GU, issued October 3, 2016, in Docket No. 160085-GU, In re: Joint petition for
approval of swing service rider, by Florida Public Utilities Company, Florida Public Utilities Company-Indiantown
Division, Florida Public Utilities Company-Fort Meade, and Florida Division of Chesapeake Utilities Corporation.
4 Order No. PSC-2023-0357-PCO-GU, issued November 9, 2023, in Docket No. 20230110-GU, In re: Petition for
approval of tariff modifications to implement transportation balancing charge rider, by Florida City Gas.
5 Document No. 06166-2023, FCG responses to staff’s first data request, and Document No. 06711-2023, FCG’s
responses to staff’s second data request.
6 The 2024 PGA filing includes $12,863,340 in storage and capacity costs. However, Appendix 3 to the petition
shows that $12,795,953 was booked to the PGA. FCG explains this difference is due to the number of days in the
month of February. The 2024 PGA filing included 29 days, while the filing in this docket used only 28.

ORDER NO. PSC-2024-0076-TRF-GU
DOCKET NO. 20230110-GU
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system-wide total TPS imbalance as a percentage of FCG’s total capacity and storage. Appendix
4 to the petition provides the calculation of TPS imbalances as a percentage of FCG’s total
capacity and storage and the resulting two-year average imbalance of 7.85 percent (7.81 percent
for 2021 and 7.88 percent for 2022).
In its PGA projection filing for 2024, FCG estimated that its capacity and storage costs
would be about $12.8 million. These costs were included and approved by us for the calculation
of the 2024 PGA factor.7 Allocating 7.85 percent of the total capacity and storage costs to
transportation customers results in approximately $1 million to be collected by the rider from
transportation customers, as shown on Appendix 3 to the petition. Appendix 3 shows that the
utility uses Bay Gas Storage (located in Mobile, Alabama) and transports natural gas into Florida
on the Florida Gas Transmission interstate pipeline and Peninsula intrastate pipeline.
FCG would then apportion the 2024 balancing charge revenue requirement ($1,004,482)
to individual transportation customer classes by forecasted annual therms to develop the per-
therm charge, as calculated in Appendix 5 to the petition.8 FCG has calculated the balancing
charge to be $0.00780/therm.
We find that the proposed methodology to calculate the balancing charge is reasonable
because it allocates the costs of storage and capacity from imbalances to the more appropriate
cost-causers, further reducing cross-subsidization between customer classes.
In response to staff’s data request, FCG stated that the utility opted to calculate the
average TPS imbalance using two years for its initial filing, as opposed to a multi-year average,
as described in proposed tariff sheet No. 82.9 FCG explained that it relied upon the most accurate
and complete data available for full calendar years and that the utility did not use calendar year
2020 due to impacts of COVID-19.
Future Revisions to Transportation Balancing Charge
Pursuant to subsection D of proposed tariff sheet No. 82, FCG has proposed to file an
updated rider charge if there are future material changes in the total capacity and storage costs
booked to the PGA. Furthermore, the utility has proposed to track the average monthly TPS
balances on an annual basis and file an updated charge for our approval if the three-year average
monthly system-wide total TPS imbalances change by more than 10 percent. FCG explained that
although the utility used a combined two-year monthly average to estimate the initial imbalance,
FCG believes using a three-year average going forward is a reasonable method to track TPS
imbalances on a rolling basis each year.10
7 Order No. PSC-2023-0347-FOF-GU, issued November 16, 2023, in Docket No. 20230003-GU, In re: Purchased
gas adjustment (PGA) true-up.
8 There are four customer classes not included in the calculation on Appendix 5, as they do not currently hold any
transportation customers. FCG explained that the balancing charge would also be applicable if any transportation
customers took service under these rate schedules in the future, in response to staff’s first data request, No. 16.
9 Document No. 06166-2023, FCG’s Responses to Staff’s First Data Request, No. 4.
10 Id.

ORDER NO. PSC-2024-0076-TRF-GU
DOCKET NO. 20230110-GU
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We find that FCG’s proposal for future revisions to the balancing charge is a reasonable
methodology to track changes to TPS imbalances and their associated storage and capacity costs.
Transportation Balancing Charge Revenue Credit to the PGA
In its petition at paragraph 14, the utility asserts that its interstate and intrastate costs are
currently being charged to the PGA cost recovery clause and paid exclusively by sales
customers. As background information, the PGA clause authorizes investor-owned natural gas
utilities within our jurisdiction to recover prudently incurred commodity and gas transportation
costs on a dollar-for-dollar basis for the gas it purchases and resells to its customers. Through an
annual hearing process, the utilities file true-up and projection schedules, and we evaluate the
actual and estimated costs presented in order to set a yearly maximum levelized upper limit
factor, or cap for the upcoming (or forward) year.11 True-up balances from a prior year are used
in the calculation to set the forward year PGA cap that sales customers pay.
FCG asserts that because transportation customer volumes can fluctuate, it will not
prepare a forecast of per-therm revenue that the proposed balancing charge will generate.
Instead, FCG plans to collect such revenues and apply them as a credit in the annual true-up
filing for the PGA. 12 The application of the rider as a credit in the utility’s final true-up schedule
will effectively reduce the subsidization burden that sales customers have been carrying, since
the credit is included in the costs that are used in establishing the forward-year PGA factor.
Customer Bill Impacts
The proposed rider would result in an increase in costs assigned to transportation
customers, and a corresponding reduction of costs assigned to sales customers in the PGA. FCG
provided estimated monthly bill impacts for average commercial and industrial transportation
customers in Appendix 6 to the petition. Small commercial GS-1 transportation customers who
consume 174 therms per month would see an increase of approximately $1.39, including Gross
Receipts Tax.
FCG provided estimated impacts of the balancing charge on the PGA in response to
staff’s data request.13 All things remaining equal and assuming that balancing charge revenues
are recovered equally over a twelve-month period, FCG estimated that a credit of approximately
$1 million to the PGA would reduce the maximum levelized 2024 PGA factor from $0.84816 per
therm to $0.82773 per therm, a reduction of approximately two cents per therm for the sales
customers. FCG notes that the savings actually realized by sales customers depends on several
factors, such as the actual balancing charge revenues recovered and credited, effective date of the
rider, applicable annual PGA cycle, and a sales customer’s individual usage.
11 By our approval of an annual “cap,” we authorize investor-owned natural gas utilities the managerial discretion to
evaluate real (market-driven) commodity and gas transportation costs incurred, and adjust on a monthly basis the
actual factor it charges customers to recover the incurred costs, as long as the amount charged to customers is at or
below the authorized upper limit. No other cost recovery clause functions as the PGA does, wherein the utility can
“flex” the recovery factor that is charged to customers.
12 FCG suggests that balancing charge revenue credits will be listed as a subpart to Line 1 on Schedule A-7 of the
company’s final PGA true-up filing, as well as on the monthly A-2 Schedules.
13 FCG’s Responses to Staff’s First Data Request, No. 6.

ORDER NO. PSC-2024-0076-TRF-GU
DOCKET NO. 20230110-GU
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Effective Date
In its petition, FCG stated that modifications to the utility’s billing system are necessary
to implement the proposed balancing charge. FCG requested that we approve the balancing
charge to become effective from the later of 30 days after our vote approving the proposed
tariffs, or once the billing system modifications are complete. FCG shall notify staff once all
billing system modifications are complete and the rider is ready to be implemented.
FCG explained that the utility provided notice of the proposed rider to all TPS on the
system, as well as all existing transportation customers within 30 days of filing its petition. We
have reviewed the customer noticing and confirmed that the notice reflects FCG’s balancing
charge as proposed in its petition. FCG has also proposed to notify customers through a bill
message immediately prior to the effective date of the rider.
Conclusion
Based on the information provided in FCG’s petition and in response to staff’s data
requests, we approve FCG’s proposed transportation balancing charge and associated tariff, as
provided in Attachment A to this order. The proposed balancing charge allows FCG to recover
capacity and storage costs in a more equitable manner between transportation and sales
customers and reduce cross-subsidization between transportation and sales customers. FCG shall
incorporate actual revenues received from the balancing charge as a credit in the monthly PGA
filings and in the annual final actual PGA true-up filing. The utility shall notify staff when the
billing system modifications have been completed. The proposed tariffs shall become effective
once all necessary billing system modifications have been completed.
Based on the foregoing, it is
ORDERED 	by 	the 	Florida 	Public 	Service 	Commission 	that 	Florida 	City 	Gas’
transportation balancing charge and associated tariff is approved. The rider allows FCG to
recover capacity and storage costs in a more equitable manner between transportation and sales
customers and reduce cross-subsidization between transportation and sale customers. FCG shall
incorporate actual revenues received from the balancing charge as a credit in the monthly PGA
filings and in the annual final actual PGA true-up filing. The utility shall notify staff when the
billing system modifications have been completed. The tariffs shall become effective once all
necessary billing system modifications have been completed.
ORDERED that if a protest is filed within 21 days of issuance of the Order, the tariff
shall remain in effect with any charges held subject to refund pending resolution of the protest.
It is further
ORDERED that if no timely protest is filed, this docket shall be closed upon the issuance
of a Consummating Order.

ORDER NO. PSC-2024-0076-TRF-GU
DOCKET NO. 20230110-GU
PAGE6
By ORDER of the Flori da Public Service Commission this 22nd day of March, 2024.
MRT
ADAMJ. 	EIIAN
Commissi n Cl 	k
Florida Public 	rvice Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.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.
NOT I CE OF FURTHER PROCEEDINGS
The Florida Public Service Commission is required by Section 	120.569( 1), Florida
Statutes, to notify parties of any administrative hearing or judicial review of Commission orders
that is available under Sections 120.57 or 120.68, 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 or judicial review 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 ri ght to a hearing.
The Commission's decision on this tariff is interim in nature and will become final , unless
a person whose substantial interests are affected by the proposed action fil es a petition for a
formal proceeding, in the fo1m provided by Rule 28 -1 06.201, 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 April 12, 2024.
In 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 docket before the issuance date of this order is
considered abandoned unless it satisfies the foregoing conditions and is renewed within the
specified protest period.

ORDER NO. PSC-2024-0076-TRF-GU DOCKET NO. 20230110-GU PAGE 7
Attachment A
Page 1 of 2
Florida City Gas
FPSC Natural Gas Tariff Volume No. 10
First Second Revised Sheet No. 2 Cancels First RevisedOriginal Sheet No. 2
INDEX TO RATE SCHEDULES AND RIDERS
RATE SCHEDULES:
Sheet No.
Residential Service ("RS") Rates:
Therms per Year
RS-1
0-99
29
RS-100
100-599
30
RS-600
600+
31
General Service ("GS") Rates:
Therms per Year
GS-1
0-5,999
32
GS-6K
6,000 - 24,999
34
GS-25K
25,000 - 119,999
36
GS-120K
120,000 - 1,249,999
38
GS-1,250K
1,250,000 - 10,999,999
40
GS-11M
11,000,000 - 24,999,999
42
GS-25M
25.000,000+
44
Others:
GL
Gas Lighting Service
46
RSG
Residential Standby Generator Service
47
CSG
Commercial Standby Generator Service
48
NGV-I
Natural Gas Vehicle Service-I
49
NGV-II
Natural Gas Vehicle Service-II
50
KDS
Contract Demand Service
54
LES
Load Enhancement Service
57
TPS
Third Party Supplier
60
TSS
Transportation Supply Service
68
OSS
Off-System Sales Service
70
EDGS
Economic Development Gas Service
72
RNGS
Renewable Natural Gas Service
74.1
RIDERS:
A
Purchased Gas Adjustment ('PGA")
75
B
Energy Conservation Cost Recovery Adjustment ("ECCR")
76
C
Competitive Rate Adjustment ("CRA")
77
D
Safety, Access and Facility Enhancement (SAFE) Program
78
E
Transportation Balancing Charge ("TBC")
82
Issued by: Kurt Howard General Manager, Florida City Gas
Effective: January 5, 2021-

ORDER NO. PSC-2024-0076-TRF-GU Attachment A
DOCKET NO. 20230110-GU Page 2 of 2
PAGE 8

Issued by: Kurt Howard Effective:
General Manager, Florida City Gas