Florida Public Service Commission native order document 09569-2024

FILED 10/17/2024
DOCUMENT NO. 09569-2024
FPSC - COMMISSION CLERK
BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION
In re: Petition for approval of 2023 true-up,
projected 2024 true-up, and 2025 revenue
requirements and surcharges associated with
cast iron/bare steel pipe replacement rider, by
Peo les Gas S stem, Inc.
DOCKET NO. 20240133-GU
ORDER NO. PSC-2024-0453-PCO-GU
ISSUED: October 17 , 2024
The following Commissioners participated in the disposition of this matter:
MIKE LA ROSA, Chairman
GARYF. CLARK
ANDREW GILES FAY
GABRIELLA PASSIDOMO
ORDER SUSPENDING TA RIFF
BY THE COMMISSION :
Background
On August 30, 2024, Peoples Gas System, Inc. (Peoples or utility) filed a petition for
approval of the 2023 true-up, projected 2024 true-up, and 2025 revenue requirements and
surcharges associated with its cast iron/bare steel (Cl/BS) pipe replacement rider. The rider was
originally approved by Order No. PSC-12-0476-TRF-GU (2012 Order) to recover the cost of
accelerating the replacement of cast iron and bare steel pipes through a surcharge on customers'
bill s. 1 As estab li shed by the 2012 Order, Peoples would roll replaced infrastructure into rate base
during a rate case, and the CI/BS surcharge wou ld be "reset to zero". 2 The surcharge is set to
terminate when all applicable CI/BS pipes have been replaced and included in rate base. During
the 2023 Peoples rate case, CI/BS investments as of December 31, 2023, were moved into rate
base pursuant to Order No . PSC-2023-0388-FOF-GU. 3
In the 2023 rate case order, we approved the Long Term Debt Cost Rate True-Up
Mechanism (L TDR true-up mechanism), which allowed Peoples to make a one-time adjustment
to its forecasted long-term debt cost rate after its inaugural debt issuance. The LTDR true-up
mechanism and the associated incremental base rate revenue increase was approved in Order No.
PSC-2024-0170-TRF-GU.4 As part of the Order, the utility was required to include the actual
incremental amount for recovery in the subject docket (2024 CI/BS Rider).
1 Order No. PSC- 12-0476-TRF-GU , issued September 18, 2 01 2, in Docket No. 20110320-GU, In re: Petition for
approval of Cast Iron/Bare Steel Pipe Replacement Rider (Rider CI/BSR), by P eoples Gas System.
2 Order No. PSC-1 2-0476-TRF-GU, page 3.
3 Order No. PSC-2023-03 88-TRF-GU, issued December 27, 2023, in Docket No. 20230023-GU, In re: Petition for
rate increase by Peoples Gas System, In c.
4 Order No. PSC-2024-0170-T RF-GU, issued May 23, 2024, in Docket No. 20240028-GU, In re : Petition to
implement long-term debt cost tru e- up mechanism, by Peoples Gas System, Inc.

ORDER NO. PSC-2024-0453-PCO-GU
DOCKET NO.20240133-GU
PAGE2
Cw-rently, Peoples has an active petition pending before us for an expansion of the CI/BS
rider in Docket No. 20240107-GU. In that docket, Peoples has proposed to rename the CJ/BS
rider to the Safety of Facilities and 1nfrastructure Replacement Rider (SAFIR) and expand the
categories of eligible replacements under the rider. If we approve the SAFIR program, projected
capital expenditLLres will increase for 2025.
The utility in the instant petition stated that if we approve Peoples' SAFIR petition before
November 30, 2024, the utility will seek approval of Lhe revenue requirement and surcharge for
CI/BS replacement, PPP replacement, and SA FIR modifications. If the petition remains pending
on November 30, 2024, Peoples will seek approval of the revenue requirement and surcharge for
CI/ BS and PPP replacement only. Peoples' current surcharges were approved in Order No. PSC-
2023-0363-TRF-GU.5
We have jurisdiction over this matter pursuant to Sections 366.04, 366.05, and 366.06,
Florida Statutes (F.S.).
Decision
Pursuant to Section 366.06(3), F.S. , we may withhold consent to the operation of all or
any portion of a new rate schedule, delivering to the utility requesting such a change a reason or
written statement of good cause for doing so within 60 days.
Our staff requires sufficient time to review the utility 's petition and gather all pertinent
information in order to present us with an informed recommendation on Peoples' proposed
revised CI/BS rates and associated tariff for the period January through December 2025. This
constitutes good cause consistent with the requirements of Section 366.06(3), F.S.
Therefore, Peoples' proposed revised CI/BS rates and associated tariff for the period
January through December 2025 shall be suspended.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Peoples Gas System, Inc. 's
proposed re vised Cl/BS rates and associated tariff for the period January through December
2025 be suspended to allow our staff sufficient time to review the petiLion and gather all
pertinent information in order to present us with an informed recommendation on the tariff
proposals. It is further
ORDERED that this docket shall remain open pending our decision on the proposed
tariff.
5 Order No. PSC-2023-0363-TRF-GU, issued November 29, 2023, in Docket No. 20230098-GU, In re: Petition/or
approval of 2022 true-up, projected 2023 true-up, and 2024 revenue requiremems and surcharges associat ed with
cast iron/bare steel pipe replacement ride r. by Peoples Gas System, Inc.

ORDER NO. PSC-2024-0453-PCO-GU
DOCKET NO. 20240133-GU
PAGE3
By ORDER of the Florida Public Service Commission this 17th day of October, 2024.
RPS
Florida Public Service Commission
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399
(850) 413-6770
www.floridapsc.com
Copies furnished: 	A copy of trus document is
provided to the parties of record at the time of
issuance and, if applicable, interested persons.
NOTICE OF FURTHER PROCEEDTNGS OR JUDICIAL REV IEW
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 right to a hearing.
Any 	party 	adversely 	affected 	by 	this 	order, 	which 	is 	preliminary, 	procedural 	or
intermediate in nature, may request: (1) reconsideration within 10 days pursuant to Rule 25-
22.0376, Florida Administrative Code; or (2) judicial review by the Florida Supreme Court, in
the case of an electric, gas or telephone utility, or the First District Court of Appeal. in the case
of a water or wastewater utility. 	A motion for reconsideration shall be filed with the Office of
Commission Clerk, in the form prescribed by Rule 25-22.0376, Florida Administrative Code.
Judicial review of a preliminary, procedural or intennediate ruling or order is available if review
of the final action will not provide an adequate remedy. 	Such review may be requested from the
appropriate court, as described above, pursuant to Rule 9.100, Florida Rules of Appellate
Procedure.