Florida Public Service Commission native order document 03928-2024

OCR transcription for search; preserved printed pages are authoritative

FILED 5/23/2024
DOCUMENT NO. 03928-2024
FPSC - COMMISSION CLERK

BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION

In re: Petition for approval of transportation DOCKET NO. 20240031-GU
service agreement with Florida Public Utilities | ORDER NO. PSC-2024-0169-PAA-GU
Company by Peninsula Pipeline Company, Inc. | ISSUED: May 23, 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

NOTICE OF PROPOSED AGENCY ACTION
ORDER APPROVING TRANSPORTATION SERVICE AGREEMENT

BY THE COMMISSION:

NOTICE is hereby given by the Florida Public Service Commission that the action
discussed herein is preliminary in nature and will become final unless a person whose interests

are substantially affected files a petition for a formal proceeding, pursuant to Rule 25-22.029,
Florida Administrative Code (F.A.C.).

BACKGROUND

On February 7, 2024, Peninsula Pipeline Company, Inc. (Peninsula) filed a petition for
approval of a firm transportation service agreement between Peninsula and Florida Public
Utilities Company (FPUC) for Plant City and Lake Mattie system expansions. The completion
of the Plant City and Lake Mattie system expansions are intended to enhance delivery of natural
gas to FPUC’s natural gas systems in the service territory in Hillsborough and Polk County.
FPUC is a local distribution company subject to the regulatory jurisdiction of the Commission
pursuant to Chapter 366, Florida Statutes (F.S.) Peninsula operates as an intrastate natural gas
transmission company as defined by Section 368.103(4), F.S.!

Peninsula provides gas transportation service only; it does not engage in the sale of
natural gas to customers. By Order No. PSC-07-1012-TRF-GP (2007 Order), Peninsula received
approval of an intrastate gas pipeline tariff that allows it to construct and operate intrastate
pipeline facilities and to actively pursue agreements with natural gas customers.’ Pursuant to the
2007 Order, Peninsula is allowed to enter into gas transmission agreements that meet certain

' Order No. PSC-06-0023-DS-GP, issued January 9, 2006, in Docket No. 20050584-GP, Jn re: Petition for
declaratory statement by Peninsula Pipeline Company, Inc. concerning recognition as a natural gas transmission
company under Section 368.101, F.S., et seq.

> Order No. PSC-07-1012-TRF-GP, issued December 21, 2007, in Docket No. 070570-GP, Jn re: Petition for
approval of natural gas transmission pipeline tariff by Peninsula Pipeline Company, Inc.

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU
PAGE 2
criteria without prior Commission approval.3 	However, Peninsula is requesting Commission
approval of this proposed agreement as it does not fit any of the enumerated criteria.4
Additionally, Peninsula and FPUC (collectively “the parties”) are subsidiaries of Chesapeake
Utility Corporation, and agreements between affiliated companies must be approved by the
Commission pursuant to Section 368.105, F.S., and the 2007 Order.
The proposed agreements would be effective for 20 years after the date of execution, and
extended on a year-to-year basis after this initial term, unless either party chooses to terminate
via written notice submitted 90 days prior to the expiration of the current term. Either party may
request modification of the rates or terms of the agreement, to be made effective in the next
renewed term, no less than 120 days before the expiration of the current term. 	However, the
parties acknowledge that any amendments to the proposed agreements would require further
Commission approval.
Peninsula would recover the pipeline and district regulator construction costs through the
monthly reservation charge to FPUC as shown in Exhibit A to the proposed agreements. 	The
monthly reservation charge is designed to recover costs such as, but not limited to, engineering,
permitting, materials, and installation costs associated with pipeline and related facilities,
ongoing 	maintenance 	including 	Pipeline 	and 	Hazardous 	Materials 	Safety 	Administration
compliance, 	safety 	requirements, 	property 	taxes, 	gas 	control, 	and 	Peninsula’s 	return 	on
investment.
FPUC would recover its payments to Peninsula through the Purchased Gas Adjustment
(PGA) and swing service mechanisms. The PGA allows FPUC to periodically adjust the price of
natural gas supplied to its customers to reflect the actual cost of gas purchased and delivered on
behalf of the customers. 	The swing service rider allows FPUC to recover intrastate capacity
costs from their transportation customers and is a cents per therm charge that is included in the
monthly customer gas bill of transportation customers. 	While FPUC would incur costs
associated with this service expansion, new load added to the system would help spread the costs
over a larger customer base.
Pursuant to the proposed agreements (Attachments A and B), Peninsula would construct,
own, and operate new natural gas pipelines and acquire from FPUC existing assets to allow them
to more adequately provide service to Plant City and Lake Mattie. Maps of the proposed projects
are included in Attachment C.
During the evaluation of the petition, two data requests to the parties were issued for
which responses were received on April 25 and 8, 2024. 6 Commission staff and the parties held a
phone conference on April 17, 2024, to ask further questions and discuss the proposed
agreement. 	On April 18, 2024, the parties filed a revised transportation service agreement
related to the Lake Mattie project and a revised Exhibit A to the transportation service
agreement, as well as a revised map for the Lake Mattie project. On April 22, 2024, the parties
filed a second revised Exhibit A to correct an error in a confidential number contained in Exhibit
3 Peninsula Pipeline Company, Inc., Intrastate Pipeline Tariff, Original Vol. 1, Original Sheet No. 11, Section 3.
4 Peninsula Pipeline Company, Inc., Intrastate Pipeline Tariff, Original Vol. 1, Original Sheet No. 12, Section 4.
5 Joint Responses to Staff’s First Data Request, Document No. 01541-2024
6 Joint Responses to Staff’s Second Data Request, Document No. 01690-2024

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU
PAGE 3
A filed on April 18, 2024. We have jurisdiction over this matter pursuant to Sections 366.05(1),
366.06, and 368.105, F.S.
DECISION
Approval of Plant City Transportation Service Agreement
Proposed Plant City Expansion Project
The parties have entered into the proposed firm transportation service agreement to
enable FPUC to increase capacity to meet current and future demand needs in Plant City.
The proposed Plant City expansion project would consist of approximately 2.4 miles of
4-inch coated steel pipeline, three new delivery points, a new interconnect with Florida Gas
Transmission (FGT), and Peninsula’s acquisition of assets from FPUC. 	The acquired assets
from FPUC consist of about 1,700 feet of 4-inch coated steel pipeline located near the planned
interconnect with FGT. This project is expected to be completed by the end of 2024.
The Plant City expansion would begin with the acquisition of about 1,700 feet of 4-inch
coated steel pipeline from FPUC, which Peninsula would interconnect with FGT using a newly
constructed gate station. 	From the acquired assets, Peninsula would build three extensions
leading to three new delivery points, for a total of approximately 12,225 feet.
Anticipated System Benefits
FPUC states that the proposed Plant City transportation service agreement and expansion
project would help FPUC serve current demand, as well as meet demands of projected growth.
Future developments are planned along both Sam Allen Road and Wilder Road, both of which
are proposed to receive natural gas access per the expansion outlined in the petition. The project
is expected to provide an additional 5,000 dekatherms of natural gas capacity per day.
Negotiated Monthly Reservation Payments to Peninsula
The negotiated monthly reservation charge listed in Attachment A is consistent with
market rates, within the guidelines of Section 368.105(3)(b), F.S. The costs to Peninsula
associated with constructing the expansion would be recovered through use of the monthly
reservation charge. Peninsula would purchase the assets from FPUC for their net book value of
$174,008.97. 	FPUC customers would pay for their use of these assets through this monthly
reservation charge alone, which was calculated using an engineering estimate placing the assets
at a lower value of $147,000.7 	The assets discussed above were not included in FPUC’s rate
base during the latest rate case proceeding in 2022; therefore, FPUC’s general body of ratepayers
are currently not paying for those assets. 	For this reason we find that the parties’ initial firm
transportation agreement is appropriate as proposed.
Conclusion
Based on our review of the petition and the parties’ responses to data requests, we
approve the proposed firm transportation service agreement associated with the Plant City
project between Peninsula and FPUC, dated January 30, 2024, included as Attachment A. 	The
firm transportation service agreement is reasonable and meets the requirements of Section
368.105, F.S. 	Furthermore, the proposed agreement benefits FPUC’s current and future
7 Joint responses to Staff’s Second Data Request, Document No. 01690-2024.

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU
PAGE 4
customers by extending to new delivery points which will permit FPUC to serve both existing
residents and planned developments.
Approval of Lake Mattie Transportation Service Agreement
Proposed Transportation Service Agreement for Lake Mattie
The parties have entered into the proposed firm transportation service agreement to
enhance FPUC’s diversity of gas supply to Polk County. The parties state that FPUC’s current
service would be strengthened by introducing multiple sources of gas from interstate pipelines in
the area. 	Paragraph 20 of the petition states that, “Through working with the Economic
Development Council of Haines City, FPUC projects significant new demand consisting of a mix
of customer demand over the next 10 years in Haines City that FPUC’s system in the area is not
currently capable of serving without additional access to interstate capacity provided by this
project.”
Proposed Lake Mattie Expansion Project
Peninsula proposes construction of 13.8 miles of 4-inch coated steel pipeline, an
interconnect with the Florida Southeast Connection pipeline, three district regulator stations, and
the acquisition of assets from FPUC. All phases of the project are expected to be completed by
the third quarter of 2025.
The expansion would first begin by acquiring certain assets from FPUC. 	Peninsula
would acquire a city gate and 1.2 miles of 4-inch steel pipe from FPUC at book value. Peninsula
would construct a new district regulator system at the end of the acquired assets. 	This
acquisition is necessary for Peninsula to upgrade the systems to be able to handle a greater
volume.
The second phase of the expansion would begin with Peninsula building an extension of
4.5 miles of new 4-inch coated steel, and building a new interconnect with the existing Lake
Mattie system. 	At the end of the extension, Peninsula would build a new district regulator
system.
The final phase of the expansion would begin with Peninsula building an interconnect
with the Florida Southeast Connection pipeline, and 4.5 miles of 4-inch coated steel which would
connect to an existing district regulator that interconnects with the existing Lake Mattie system.
Anticipated System Benefits
The parties assert that this expansion project is beneficial to FPUC’s customers. 	The
planned expansions are intended to enhance the diversity of gas supply, as well as provide
additional gas to meet projected future growth. The Lake Mattie project is expected to supply an
additional 8,700 dekatherms of capacity per day, which would enable FPUC to meet its current
and future customer demand.
Negotiated Monthly Reservation Payments to Peninsula
The parties assert that the negotiated monthly reservation charge shown in Attachment B
is consistent with market rates and within the guidelines of Section 368.105(3)(b), F.S. 	The
costs to Peninsula associated with constructing the expansion would be recovered through use of
the monthly reservation charge. 	Peninsula would purchase the assets from FPUC for their net

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU
PAGE 5
book value of $276,126.15. FPUC customers would pay for the use of these assets through this
monthly reservation charge alone, which was be calculated using the net book value.
Revised Monthly Reservation Payments to Peninsula
A phone conference was held with the parties to clarify responses provided to staff’s
second data request. Through that discussion, the parties clarified that the assets discussed above
are currently in FPUC’s rate base and would remain there until the next rate proceeding, at which
point the assets would be removed from rate base to reflect the asset transfer. The parties filed
an amended agreement8 and amended Exhibit A to remove the net book value purchase price
from the calculation of the reservation charge and avoid the recovery of these assets through base
rates as well as the PGA and swing service rider. We have reviewed the amended Exhibit A and
agree with the parties that the revisions to the agreement are appropriate.
Conclusion
Having reviewed the petition and the responses to data requests, we hereby approve the
proposed firm transportation service agreement associated with the Lake Mattie project between
Peninsula and FPUC, dated April 18, 2024, and the second revised Exhibit A included as
Attachment 	B. 	The 	firm 	transportation 	service 	agreement 	is 	reasonable 	and 	meets 	the
requirements of Section 368.105, F.S. 	Furthermore, the proposed agreement will benefit
FPUC’s current and future customers by interconnecting the Lake Mattie system with the Florida
Southeast Connection pipeline, thereby ensuring FPUC will be able to meet the demands of
projected growth.
Based on the foregoing, it is
ORDERED by the Florida Public Service Commission that Peninsula Pipeline Company,
Inc.’s petition for approval of a transportation service agreement between Peninsula Pipeline
Company, Inc. and Florida Public Utilities Company is hereby granted as stated herein. 	It is
further
ORDERED that the Plant City transportation service agreement between Peninsula
Pipeline Company, Inc. and Florida Public Utilities Company dated January 30, 2024, included
herein as Attachment A, is hereby approved. It is further
ORDERED that the Lake Mattie transportation service agreement between Peninsula
Pipeline Company, Inc. and Florida Public Utilities Company dated April 18, 2024, including
revised Exhibit A contained within Attachment B, is hereby approved. It is further
ORDERED that the provisions of this order, issued as proposed agency action, shall
become final and effective upon the issuance of a Consummating Order unless an appropriate
petition, in the form provided by Rule 28-106.201, F.A.C., is received by the Office of
Commission Clerk, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850, by the
close of business on the date set forth in the “Notice of Further Proceedings” attached hereto.
8 Document No. 02041-2024

ORDER NO . PSC-2024-0169-PAA-GU
DOCKET NO. 2024003 l-GU
PAGE6
By ORDER of the Florida Public Service Commission this 23rd day of May, 2024.
SBr
Florida Public Service 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.
NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW
The Florida Public Service Commission is required by Section 	120.569(1 ), Florida
Statutes, to notify parties of any administrative hearing that is available under Section 120.57,
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 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.
The action proposed herein is preliminary in nature. Any person whose substantial
interests are affected by the action proposed by this order may file a petition for a formal
proceeding, in the form provided by Rule 28-106.201, 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 June 13, 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/these docket(s) 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-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment A
PAGE 7 Page | of 9

PENINSULA PIPELINE COMPANY, INC.
FIRM TRANSPORTATION SERVICE AGREEMENT

THIS AGREEMENT is entered into this January 30, 2024, by and between Peninsula
Pipeline Company, Inc., a corporation of the State of Delaware (herein called "Company" or“PPC”),
and the Florida Public Utilities Company, a corporation of the State of Florida (herein called "Shipper"
ot “FPUC”), PPC and FPUC are sometimes referred to herein individually as a “Party” and collectively
as “Parties.”

WITNESSETH

WHEREAS, Shipper desires to obtain Firm Transportation Service (“FTS”) from Company;
and

WHEREAS, Company desires to provide FTS to Shipper, in accordance with the terms
hereof; and

WHEREAS, Shipper desires Company to construct a project that will allow Shipper to serve
customers within its service area with natural gas service and Company is willing to construct the project
and points of delivery; and

WHEREAS, Company intends to construct the desired project, called the Plant City Expansion
Project (“Project’’), in Polk County, Florida. As specified in Exhibit A attached hereto, the Project will
include extending a steel pipeline to a new gate station interconnect with Florida Gas Transmission
(FGT”) pipeline, and additional steel pipeline extensions with three new points to the Shipper’s local
distribution system.

NOW THEREFORE, in consideration of the premises and of the mutual covenants and
agreements herein contained, the sufficiency of which is hereby acknowledged, Company and
Shipper do covenant and agree as follows:

ARTICLE I
DEFINITION

Unless otherwise defined in this Agreement, all definitions for terms used herein have the
same meaning as provided in Company's Tariff (as hereinafter defined).

“In-Service Date” for the Project means the date that Company has commenced commercial
operations, that construction has been completed, and that the Project has been inspected and tested as
required by applicable law.

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment A
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ARTICLE II
OUAR JINAUTHORIZED

21 The Maximum Daily Transportation Quantity ("MDTQ") and the Maximum Hourly
Transportation Percentage ("MHTP") shall be set forth on Exhibit A attached hereto. The
applicable MDTQ shall be the largest daily quantity of Gas, expressed in Dekatherms, which
Company is obligated to transport ona firm basis and make available for delivery for the account of
Shipper under this Agreement on any one Gas Day.

ae If, on any Day, the Shipper utilizes transportation quantities, as measured at the
Point(s) of Delivery, in excess of the established MDTQ, as shown on Exhibit A, such
unauthorized use of transportation quantities (per Dekatherm) shall be billed at a rate of 2.0 times
the rate to be charged for each Dekatherm of the MDTQ as set forth on Exhibit A of this
Agreement.

ARTICLE III
EIRM TRANSPORTATION SERVICE RESERVATION CHARGE

3.1 The Monthly Reservation Charge for Firm Transportation Service provided under
this Agreement shall be as set forth in Exhibit A of this Agreement and shall be charged to the
Shipper beginning on the In-Service Date and shall thereafter be assessed in accordance with the
terms and conditions set forth herein,

3.2 The Parties agree to execute and administratively file with the Florida Public
Service Commission (the “Commission”) an affidavit, in the form provided in Company’s Tariff
to comply with the provisions of the Natural Gas Transmission Pipeline Intrastate Regulatory
Act.

3.3 If, at any time after the Execution Date (as herein defined) and throughout the term
of this Agreement, the Company is required by any Governmental Authority (as that term is
defined in Section 9.10) asserting jurisdiction over this Agreement and the transportation of Gas
hereunder, to incur additional tax charges (including, without limitation, income taxes and
property taxes) with regard to the service provided by Company under this Agreement, then
Shipper’s Monthly Reservation Charge shall be adjusted and Exhibit A updated accordingly, and
the new Monthly Reservation Charge shall be implemented immediately upon the effective date
of such action, subject to Commission approval of the amendment. If Shipper does not agree to
the adjusted Monthly Reservation Charge, Company shall no longer be required to continue to
provide the service contemplated in this Agreement should an action of a Governmental Authority
result in a situation where Company otherwise would be required to provide transportation service
at rates that are not just and reasonable, and in such event the Company shall have the right to
terminate this Agreement pursuant to the conditions set forth in Section D of the Rules and
Regulations of Company’s Tariff.

ORDER NO. PSC-2024-0169-PAA-GU

DOCKET NO. 2024003 1-GU Attachment A
PAGE 9 Page 3 of 9
3.4 If, at any time after the Execution Date (as herein defined) and throughout the term of

this Agreement, the Company is required by any Governmental Authority (as that term is defined in
Section 9.10) asserting jurisdiction over this Agreement and the transportation of Gas hereunder, to
incur additional capital expenditures with regard to the service provided by Company under this
Agreement, other than any capital expenditures required to provide transportation services to any other
customer on the pipeline system serving Shipper’s facility, but including, without limitation, mandated
relocations of Company’s pipeline facilities serving Shipper’s facility and costs to comply with any
changes in pipeline safety regulations, then Shipper’s Monthly Reservation Charge shall be adjusted
and Exhibit A updated accordingly, and the new Monthly Reservation Charge shall be implemented
immediately upon the effective date of such action, subject to Commission approval of the
amendment. If Shipper does not agree to the adjusted Monthly Reservation Charge, Company shall
no longer be required to continue to provide the service contemplated in this Agreement should an
action of a Governmental Authority result in a situation where Company otherwise would be required
to provide transportation service at rates that are not just and reasonable, and in such event the
Company shall have the right to terminate this Agreement pursuant to the conditions set forth in Section
D of the Rules and Regulations of Company’s Tariff.

ARTICLE IV
TERM AND TERMINATION

4.1 Subject to all other provisions, conditions, and limitations hereof, this Agreement shall
be effective upon its date of execution by beth Parties (the “Execution Date”) and shall continue in
full force for an initial period of twenty (20) years from the In-Service Date (“Initial Term”). After
the Initial Term, the Agreement shall be extended on a year-to-year basis (each a "Renewed Term"
and, all Renewed Terms together with the Initial Term, the “Current Term”), unless either Party gives
written notice of termination to the other Party, not less than (90) days prior to the expiration of the
Current Term. This Agreement may only be terminated earlier in accordance with the provisions of
this Agreement and the Parties’ respective rights under applicable law.

4.2 No less than 120 days before the expiration of the Current Term, either Party may
request the opportunity to negotiate a modification of the rates or terms of this Agreement to be
effective with the subsequent Renewed Term. Neither Party is obligated to, but may, agree to any
mutually acceptable modification to the Agreement for the subsequent Renewed Term. In the
event the Parties reach agreement for a modification to the Agreement for the subsequent Renewed
Term, such agreed upon modification ("Agreement Modification") shall be set forth in writing and
signed by both Parties prior to the expiration of the Current Term.

4.3 Any portion of this Agreement necessary to resolye monthly balancing and
operational controls under this Agreement, pursuant to the Rules and Regulations of Company's
Tariff, shall survive the expiration or termination of this Agreement until such time as such
monthly balancing and operational controls have been resolved.

4.4 In the event Shipper fails to pay for the service provided under this Agreement or
otherwise fails to meet Company's standards for creditworthiness set forth in Section C of the
Rules and Regulations of the Company’s Tariffor otherwise violates the Rules and Regulations

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment A
PAGE 10 Page 4 of 9

of Company's Tariff, or defaults on this Agreement, Company shall have the right to terminate
this Agreement pursuant to the conditions set forth in Section D of the Rulesand Regulations of
Company's Tariff.

ARTICLE V
COMPANY'S TARIFF PROVISIONS

5.1 Company's Tariff approved by the Commission, including any amendments thereto
approved by the Commission during the term of this Agreement (“Company’s Tariff’), is
hereby incorporated into this Agreement and made a part hereof for all purposes. In the event
of any conflict between Company's Tariff and the specific provisions of this Agreement, the
latter shall prevail, in the absence of a Commission Order to the contrary.

ARTICLE VI
REGULATORY AUTHORIZATIONS AND APPROVALS

6.1 Company's obligation to provide service ts conditioned upon receipt and acceptance
of any necessary regulatory authorization to provide Firm Transportation Service for Shipper
in accordance with the Rules and Regulations of Company's Tariff.

ARTICLE VII
TAL The Delivery Point(s) for all Gas delivered for the account of Shipper into
Company's pipeline system under this Agreement, shall be as set forth on Exhibit A attached
hereto.

72 The Point(s) of Delivery shall be as set forth on Exhibit A attached hereto.

ies! Shipper shall cause Transporter to deliver to Company at the Delivery Point(s)
on the Transporter's system, the quantities of Gas to be transported by Company hereunder.
Company shall have no obligation for transportation of Shipper’s Gas prior to receipt of such
Gas from the Transporter at the Delivery Point(s), nor shall Company have any obligation to
obtain capacity on Transporter for Shipper or on Shipper’s behalf. The Company shall deliver
such quantities of Gas received from the Transporter at the Delivery Point(s) for Shipper's
account to Company's Point(s) of Delivery identified on Exhibit A.

ARTICLE VIUI
SCHEDULING AND BALANCING

8.1 Shipper shall be responsible for nominating quantities of Gas to be delivered by
the Transporter to the Delivery Point(s) and delivered by Company to the Point(s) of Delivery.
Shipper shall promptly provide notice to Company of all such nominations. Imbalances

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between quantities (i) scheduled at the Delivery Point(s) and the Point(s) of Delivery, and (ii)
actually delivered by the Transporter and/or Company hereunder, shall be resolved in
accordance with the applicable provisions of Company's Tariff, as such provisions, and any
amendments to such provisions, are approved by the Commission.

8.2 The Parties hereto recognize the desirability of maintaining a uniform rate of
flow of Gas to Shipper’s facilities over each Gas Day throughout each Gas Month. Therefore,
Company agrees to receive from the Transporter for Shipper's account at the Delivery Point(s)
and deliver to the Point(s) of Delivery up to the MDTQ as described in Exhibit A, subject to any
restrictions imposed by the Transporter and to the provisions of Article IX of this Agreement, and
Shipper agrees to use reasonable efforts to regulate its deliveries from Company's pipeline system
at a daily rate of flow not to exceed the applicable MDTQ for the Gas Month in question, subject
to any additional restrictions imposed by the Transporter or by Company pursuant to Company's

Tariff.
ARTICLE IX
MISCELLANEOUS PROVISIONS
OL Notices and Other Communications. Any notice, request, demand, statement, or

payment provided for in this Agreement, unless otherwise specified, shall be sent to the Parties
hereto at the following addresses:

Company: Peninsula Pipeline Company, inc.
500 Energy Lane, Suite 200
Dover, Delaware 19901
Attention: Contracts

Shipper:
Florida Public Utilities Company
208 Wildlight Avenue
Yulee, Florida 32097
Attention: Contracts

9,2 Headings. All article headings, section headings and subheadings in this Agreement
are inserted only for the convenience of the Parties in identification of the provisions hereof and
shall not affect any construction or interpretation of this Agreement.

9,3 Entire Agreement. This Agreement, including the Exhibit attached hereto, sets forth
the full and complete understanding of the Parties as of the Execution Date, and it supersedes any
and all prior negotiations, agreements and understandings with respect to the subject matter hereof.
No Party shall be bound by any other obligations, conditions, or representations with respect to the
subject matter of this Agreement.

9.4 Amendments. Neither this Agreement nor any of the terms hereof may be

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terminated, amended, supplemented, waived or modified except by an instrument in writing signed
by the Party against which enforcement of the termination, amendment, supplement, waiver or
modification shall be sought. A change in (a) the place to which notices pursuant to this Agreement
must be sent or (b) the individual designated as the Contact Person pursuant to Section 9.1 shall
not be deemed nor require an amendment of this Agreement provided such change is
communicated in accordance with Section 9.1 of this Agreement. Further, the Parties expressly
acknowledge that the limitations on amendments to this Agreement set forth in this section shall not
apply to or otherwise limit the effectiveness of amendments that are or may be necessary to comply
with the requirements of, or are otherwise approved by, the Commission or its successor agency or
authority.

9.5 Severability. If any provision of this Agreement becomes or is declared by a court
of competent jurisdiction to be illegal, unenforceable or void, this Agreement shali continue in full
force and effect without said provision; provided, however, that if such severability materially
changes the economic benefits of this Agreement to either Party, the Parties shall negotiate in good
faith an equitable adjustment in the provisions of this Agreement.

9.6 Waiver. No waiver of any of the provisions of this Agreement shall be deemed to
be, nor shall it constitute, a waiver of any other provision whether similar or not. No single waiver
shall constitute a continuing waiver, unless otherwise specifically identified as such in writing. No
waiver shall be binding unless executed in writing by the Party making the waiver.

9.7 Attorneys' Fees and Costs. In the event of any litigation between the Parties arising
out of or relating to this Agreement, the prevailing Party shall be entitled to recover all costs
incurred and reasonable attorneys’ fees, including attorneys’ fees in all investigations, trials,
bankruptcies, and appeals.

9.8 Independent Parties. Company and Shipper shall perform hereunder as independent
parties. Neither Company nor Shipper is in any way or for any purpose, by virtue of this Agreement
or otherwise, a partner, joint venturer, agent, employer or employee of the other. Nothing in this
Agreement shail be for the benefit of any third person for any purpose, including, without
limitation, the establishing of any type of duty, standard of care or liability with respect toany third
person,

99 Assignment and Transfer. No assignment of this Agreement by either Party may be
made without the prior written approval of the other Party (which approval shall not be
unreasonably withheld) and unless the assigning or transferring Party's assignee or transferee shall
expressly assume, in writing, the duties and obligations under this Agreement of the assigning or
transferring Party. Upon such assignment or transfer, as well as assumption of the duties and
obligations, the assigning or transferring Party shall furnish or cause to be furnished to the other
Party a true and correct copy of such assignment or transfer and the assumption of duties and
obligations.

9.10 Governmental Authorizations; Compliance with Law. This Agreement shall be

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DOCKET NO. 20240031-GU Attachment A
PAGE 13 Page 7 of 9

subject to all valid applicable state, local and federal laws, orders, directives, rules and regulations
of any governmental body, agency or official having jurisdiction over this Agreement and the
transportation of Gas hereunder. Company and Shipper shall comply at all times with all
applicable federal, state, municipal, and other laws, ordinances and regulations. Company and/or
Shipper will furnish any information or execute any documents required by any duly constituted
federal or state regulatory authority in connection with the performance of this Agreement. Each
Party shall proceed with diligence to file any necessary applications with any Governmental
Authorities for any authorizations necessary tocarry out its obligations under this Agreement. In the
event this Agreement or any provisions herein shall be found contrary to or in conflict with any
applicable law, order, directive, rule or regulation, the latter shall be deemed to control, but nothing
in this Agreement shall prevent either Party from contesting the validity of any such law, order,
directive, rule, or regulation, nor shall anything in this Agreement be construed to require either
Party to waive its respective rights to assert the lack of jurisdiction of any governmental agency
other than the Commission, over this Agreement or any part thereof. In the event of such
contestation, and unless otherwise prohibited from doing so under this Section 9.10, Company
shall continue to transport and Shipper shall continue to take Gas pursuant to the terms of this
Agreement. In the event any law, order, directive, rule, or regulation shall prevent either Party
from performing hereunder, then neither Party shall have any obligation to the other during the
period that performance under the Agreement is precluded, If, however, any Governmental
Authority's modification ta this Agreement or any other order issued, action taken, interpretation
rendered, or rule implemented, will have a material adverse effect on the rights and obligations of
the Parties, including, but not limited to, the relative economic position of, and risks to, the Parties
as reflected in this Agreement, then, subject to the provisions of Sections 3.3 and 3.4 of this
Agreement, the Parties shall use reasonable efforts to agree upon replacement terms that are
consistent with the relevant order or directive, and that maintain the relative economic position of,
and risks to, the Parties as reflected in this Agreement as of the Execution Date. As used herein,
"Governmental Authority" shall mean any United States federal, state, local, municipal or other
government; any governmental, regulatory or administrative agency, court, commission or other
authority lawfully exercising or entitled to exercise any administrative, executive, judicial,
legislative, police, regulatory or taxing authority or power; and any court or governmental tribunal.

Gi) If any Governmental Authority asserting jurisdiction over the pipeline facility
contemplated in this Agreement, issues an order, ruling, decision or regulation not
coveted by Section 3.3 or 3.4 of this Agreement (including denial of necessary permits or
amendments to existing permits) related to the operation, maintenance, location, or
safety and integrity compliance, including any new or revised enforceable regulatory
classification of the pipeline facility, as applicable, which is not reasonably
foreseeable as of the Execution Date and which results in a materially adverse effect
on either Party's rights and benefits under this Agreement, each Party shall use
commercially reasonable efforts and shall cooperate with the other Party to pursue
all necessary permits, approvals and authorizations, if any, of such applicable
Governmental Authority, and to amend the terms and conditions of this Agreement,
in cach case as may be reasonably required in order that provision of firm
transportation service under this Agreement shall continue; provided that neither
Party shall be required to take any action pursuant to this Section which is reasonably

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment A
PAGE 14 Page 8 of 9

likely to have a materially adverse effect on such Party's rights and benefits under
this Agreement.

ii) Jf the Parties are unable or unwilling to reach agreement pursuant to this
Section 9,10, Company shall have the right to terminate this Agreement, without any
further obligations to Shipper, upon one hundred twenty (120) days’ prior written
notice to Shipper.

9.11 Applicable Law and Venue. This Agreement and any dispute arising hereunder shall
be governed by and interpreted in accordance with the laws of the State of Florida, without regard
for conflict of laws provisions. The venue for any action, at law or in equity, commenced by either
Party against the other and arising out of or in connection with this Agreement shall be in a court
of the State of Florida having jurisdiction.

9.12 Counterparts. This Agreement may be executed in counterparts, all of which taken
together shall constitute one and the same instrument and each of which shall be deemed an
original instrument as against any Party who has signed it.

IN WITNESS WHEREOEF, the Parties hereto have caused this Agreement to be
executed by their duly authorized officers or representatives.

COMPANY SHIPPER
Peninsula Pipeline Company, Inc. Florida Public Utilities Company

Manian Stipa. Que Ad anette
By: y:

B
Marissa Stipa Bill Hancock
Title: Director Title: Assistant Vice President

Date: 01/31/2024 Date: 01/31/2024
: ale:

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 2024003 1-GU
PAGE 15

EXHIBIT A TO
FIRM TRANSPORTATION SERVICE AGREEMENT
BETWEEN
PENINSULA PIPELINE COMPANY, INC. AND
FLORIDA PUBLIC UTILITIES COMPANY
DATED

January 30, 2024

Description of Transporter Delivery Point(s)
1. Florida Gas Transmission- Plant City Gate Station

Description of Point(s) of Delivery
1. At or near North Park Road
2. Ator near Maryland Road
3. At or near Wilder Road

Total MDTQ (Dekatherms): Dt/Day Gia
MHTP: Ga

Total Monthly Reservation Charge:
This charge is subject to adjustment pursuant to the terms of this Agreement.

Unauthorized Use Rate (In addition to Monthly Reservation Charge): @Each Day
of Unauthorized Use

Attachment A
Page 9 of 9

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment B
PAGE 16 Page | of 9

PENINSULA PIPELINE COMPANY, INC,
FIRM TRANSPORTATION SERVICE AGREEMENT

THIS AGREEMENT is entered into this April 18, 2024, by and between Peninsula Pipeline
Company, Inc., a corporation of the State of Delaware (herein called "Company" or “PPC”), and
Florida Public Utilities Company, a corporation of the State of Florida (herein called "Shipper" or
“FPUC”}, PPC and FPUC are sometimes referred to herein individually as a “Party” and collectively as
“Parties.”

WITNESSETH

WHEREAS, Shipper desires to obtain Firm Transportation Service (“FTS”) from Company;
and

WHEREAS, Company desires to provide FTS to Shipper, in accordance with the terms
hereof; and

WHEREAS, Shipper desires Company to construct a project that will allow Shipper to serve
customers within its service area with natural gas service, and Company is willing to construct the project
and points of delivery; and

WHEREAS, Company intends to construct the desired project, called the Lake Mattie Expansion,
Project (“Project”), in Polk County, Florida. As specified in Exhibit A attached hereto, the Project will
include extending steel pipelines to a new interconnect with the Florida Southeast Connection pipeline
(“FSC”), a gate station interconnect with Florida Gas Transmission (“FGT”), and three district regulator
stations to the Shipper’s local distribution system.

NOW THEREFORE, in consideration of the premises and of the mutual covenants and
agreements herein contained, the sufficiency of which is hereby acknowledged, Company and
Shipper do covenant and agree as follows:

ARTICLE I
DEFINITION

Unless otherwise defined in this Agreement, all definitions for terms used herein have the
same meaning as provided in Company's Tariff (as hereinafter defined).

“In-Service Date” for the Project means the date that Company has commenced commercial
operations, that construction has been completed, and that the Project has been inspected and tested as
required by applicable law.

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment B
PAGE 17 Page 2 of 9

ARTICLE II
UANTITY LED USE

2.1 The Maximum Daily Transportation Quantity ("MDTQ") and the Maximum Hourly
Transportation Percentage ("MHTP") shall be set forth on Exhibit A attached hereto. The
applicable MDTQ shall be the largest daily quantity of Gas, expressed in Dekatherms, which
Company is obligated to transport on a firm basis and make available for delivery for the account of
Shipper under this Agreement on any one Gas Day.

2.2 If, on any Day, the Shipper utilizes transportation quantities, as measured at the
Point(s) of Delivery, in excess of the established MDTQ, as shown on Exhibit A, such
unauthorized use of transportation quantities (per Dekatherm) shall be billed at a rate of 2.0 times
the rate to be charged for each Dekatherm of the MDTQ as set forth on Exhibit A of this
Agreement,

ARTICLE III
FIRM TRANSPORTATION SERVICE RESERVATION CHARGE

3.1 The Monthly Reservation Charge for Firm Transportation Service provided under
this Agreement shall be as set forth in Exhibit A of this Agreement and shall be charged to the
Shipper beginning on the In-Service Date and shall thereafter be assessed in accordance with the
terms and conditions set forth herein,

3.2 The Parties agree to execute and administratively file with the Florida Public
Service Commission (the “Commission”) an affidavit, in the form provided in Company’s Tariff,
to comply with the provisions of the Natural Gas Transmission Pipeline Intrastate Regulatory
Act.

33 If, at any time after the Execution Date (as herein defined) and throughout the term
of this Agreement, the Company is required by any Governmental Authority (as that term is
defined in Section 9.10) asserting jurisdiction over this Agreement and the transportation of Gas
hereunder, to incur additional tax charges (including, without limitation, income taxes and
property taxes) with regard to the service provided by Company under this Agreement, then
Shipper’s Monthly Reservation Charge shall be adjusted and Exhibit A updated accordingly, and
the new Monthly Reservation Charge shall be implemented immediately upon the effective date
of such action, subject to Commission approval of the amendment, If Shipper does not agree to
the adjusted Monthly Reservation Charge, Company shall no longer be required to continue to
provide the service contemplated in this Agreement should an action of a Governmental Authority
result in a situation where Company otherwise would be required to provide transportation service
at rates that are not just and reasonable, and in such event the Company shall have the right to
terminate this Agreement pursuant to the conditions set forth in Section D of the Rules and
Regulations of Company’s Tariff.

ORDER NO. PSC-2024-0169-PAA-GU

DOCKET NO. 2024003 1-GU Attachment B
PAGE 18 Page 3 of 9
34 Tf, at any time after the Execution Date (as herein defined).and throughout the term of

this Agreement, the Company is required by any Governmental Authority (as that term is defined in
Section 9,10) asserting jurisdiction over this Agreement and the transportation of Gas hereunder, to
incur additional capital expenditures with regard to the service provided by Company under this
Agreement, other than any capital expenditures required to provide transportation services to any other
customer on the pipeline system serving Shipper’s facility, but including, without limitation, mandated
relocations of Company’s pipeline facilities serving Shipper’s facility and costs to comply with any
changes in pipeline safety regulations, then Shipper’s Monthly Reservation Charge shall be adjusted
and Exhibit A updated accordingly, and the new Monthly Reservation Charge shall be implemented
immediately upon the effective date of such action, subject to Commission approval of the
amendment. If Shipper does not agree to the adjusted Monthly Reservation Charge, Company shall
no longer be required to continue to provide the service contemplated in this Agreement should an
action of a Governmental Authority result in a situation where Company otherwise would be required
to provide transportation service at rates that are not just and reasonable, and in such event the
Company shail have the right to terminate this Agreement pursuant to the conditions set forth in Section
D of the Rules and Regulations of Company’s Tariff.

ARTICLE IV
TERM AND TERMINATION

4,1 Subject to all other provisions, conditions, and limitations hereof, this Agreement shall
be effective upon its date of execution by both Parties (the “Execution Date”) and shail continue in
foll force for an initial period of twenty (20) years ftom the In-Service Date (“Initial Term”). After
the Initial Term, the Agreement shall be extended on a year-to-year basis (each a “Renewed Term"
and, all Renewed Terms together with the Initial Term, the “Current Term”), unless either Party gives
written notice of termination to the other Party, not less than (90) days prior to the expiration of the
Current Term. This Agreement may only be terminated earlier in accordance with the provisions of
this Agreement and the Parties' respective rights under applicable law.

42 No less than 120 days before the expiration of the Current Term, either Party may
request the opportunity to negotiate a modification of the rates or terms of this Agreement to be
effective with the subsequent Renewed Term. Neither Party is obligated to, but may, agree to any
mutually acceptable modification to the Agreement for the subsequent Renewed Term. In the
event the Parties reach agreement for a modification to the Agreement for the subsequent Renewed
Term, such agreed upon modification ("Agreement Modification") shall be set forth in writing and
signed by both Parties prior to the expiration of the Current Term.

4.3 Any pottion of this Agreement necessary to resolve monthly balancing and
operational controls under this Agreement, pursuant to the Rules and Regulations of Company's
Tariff, shall survive the expiration or termination of this Agreement until such time as such
monthly balancing and operational controls have been resolved.

4.4 In the event Shipper fails to pay for the service provided under this Agreement or
otherwise fails to meet Company's standards for creditworthiness set forth in Section C of the
Rules and Regulations of the Company’s Tariffor otherwise violates the Rules and Regulations

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment B
PAGE 19 Page 4 of 9

of Company's Tariff, or defaults on this Agreement, Company shall have the right to terminate
this Agreement pursuant to the conditions set forth in Section D of the Rulesand Regulations of
Company's Tariff.

4.5 If at any time after the Execution Date and throughout the term of this Agreement,
the Florida Public Service Commission approves revised customer rates for Shipper that reflect the
removal of the existing assets included in the Project from Shipper’s rate base, then Company may
request the opportunity to negotiate a modification of the rates or terms of this Agreement, and the
Parties shall negotiate in good faith a modification to the Agreement.

ARTICLE V
COMPANY'S TARIFF PROVISIONS

5.1 Company's Tariff approved by the Commission, including any amendments thereto
approved by the Commission during the term of this Agreement (“Company’s Tariff’), is
hereby incorporated into this Agreement and made a part hereof for all purposes. In the event
of any conflict between Company's Tariff and the specific provisions of this Agreement, the
latter shall prevail, in the absence of a Commission Order to the contrary.

ARTICLE VI
REGULATORY AUTHORIZATIONS AND APPROVALS

6.1 Company's obligation to provide service is conditioned upon receipt and acceptance
of any necessary regulatory authorization to provide Firm Transportation Service for Shipper
in accordance with the Rules and Regulations of Company's Tariff.

ARTICLE VIL
DELIVERY POINT(S) AND POINT(S) OF DELIVERY

rl The Delivery Point(s) for all Gas delivered for the account of Shipper into
Company's pipeline system under this Agreement, shall be as set forth on Exhibit A attached
hereto.

72 The Point(s) of Delivery shall be as set forth on Exhibit A attached hereto.

73 Shipper shall cause Transporter to deliver to Company at the Delivery Point(s)
on the Transporter's system, the quantities of Gas to be transported by Company hereunder.
Company shall have no obligation for transportation of Shipper’s Gas prior to receipt of such
Gas from the Transporter at the Delivery Point(s), nor shall Company have any obligation to
obtain capacity on Transporter for Shipper or on Shipper’s behalf. The Company shall deliver
such quantities of Gas received from the Transporter at the Delivery Point(s) for Shipper's
account to Company's Point(s) of Delivery identified on Exhibit A.

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment B
PAGE 20 Page 5 of 9

ARTICLE VII
SCHEDULING AND BALANCING

8.1 Shipper shall be responsible for nominating quantities of Gas to be delivered by
the Transporter to the Delivery Point(s) and delivered by Company to the Point(s) of Delivery.
Shipper shall promptly provide notice to Company of all such nominations. Imbalances
between quantities (i) scheduled at the Delivery Point(s) and the Point(s) of Delivery, and (ii)
actually delivered by the Transporter and/or Company hereunder, shall be resolved in
accordance with the applicable provisions of Company's Tariff, as such provisions, and any
amendments to such provisions, are approved by the Commission.

8.2 The Parties recognize the desirability of maintaining a uniform rate of flow of
Gas to Shipper’s facilities over each Gas Day throughout each Gas Month. Therefore,
Company agrees to receive from the Transporter for Shipper's account at the Delivery Point(s)
and deliver to the Point(s) of Delivery up to the MDTQ as described in Exhibit A, subject to any
restrictions imposed by the Transporter and to the provisions of Article [X of this Agreement, and
Shipper agrees to use reasonable efforts to regulate its deliveries from Company's pipeline system
at a daily rate of flow not to exceed the applicable MDTQ for the Gas Month in question, subject
to any additional restrictions imposed by the Transporter or by Company pursuant to Company's

Tariff.
ARTICLE IX
MISCELLANEOUS PROVISIONS
9.1 Notices and Other Communications. Any notice, request, demand, statement, or

payment provided for in this Agreement, unless otherwise specified, shall be sent to the parties
hereto at the following addresses:

Company: Peninsula Pipeline Company, Inc.
500 Energy Lane, Suite 200

Dover, Delaware 19901
Attention: Contracts

Shipper: Florida Public Utilities Company
208 Wildlight Avenue

Yulee, Florida 32097
Attention: Contracts

9.2 Headings. All article headings, section headings and subheadings in this Agreement
are inserted only for the convenience of the parties in identification of the provisions hereof and
shall not affect any construction or interpretation of this Agreement.

9.3 Entire Agreement. This Agreement, including the Exhibit attached hereto, seis forth

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment B
PAGE 21 Page 6 of 9

the full and complete understanding of the parties as of the Execution Date, and it supersedes any
and all prior negotiations, agreements and understandings with respect to the subject matter hereof.
No Party shall be bound by any other obligations, conditions, or representations with respect to the
subject matter of this Agreement.

9.4 Amendments. Neither this Agreement nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified except by an instrument in writing signed
by the Party against which enforcement of the termination, amendment, supplement, waiver or
modification shall be sought. A change in the place to which notices pursuant to this Agreement
must be sent pursuant to Section 9.1 shall not be deemed nor require an amendment of this
Agreement provided such change is communicated in accordance with Section 9.1 of this
Agreement. Further, the Parties expressly acknowledge that the limitations on amendments to this
Agreement set forth in this section shall not apply to or otherwise limit the effectiveness of
amendments that are or may be necessary ta comply with the requirements of, or are otherwise
approved by, the Commission or its successor agency or authority.

9.5 Severability. If any provision of this Agreement becomes or isdeclared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full
force and effect without said provision; provided, however, that if such severability materially
changes the economic benefits of this Agreement to either Party, the Parties shall negotiate in good
faith an equitable adjustment in the provisions of this Agreement.

9.6 Waiver. No waiver of any of the provisions of this Agreement shall be deemed to
be, nor shail it constitute, a waiver of any other provision whether similar or not. No single waiver
shall constitute a continuing waiver, unless otherwise specifically identified as such in writing. No
waiver shall be binding unless executed in writing by the Party making the waiver.

9.7 Attorneys’ Fees and Costs. In the event of any litigation between the Parties arising
out of or relating to this Agreement, the prevailing Party shall be entitled to recover all costs
incurred and reasonable attorneys' fees, including attorneys’ fees in all investigations, trials,
bankruptcies, and appeals.

9.8 Independent Parties. Company and Shipper shall perform hereunder as independent
parties. Neither Company nor Shipper is in any way or for any purpose, by virtue of this Agreement
or otherwise, a partner, joint venturer, agent, employer or employee of the other. Nothing in this
Agreement shall be for the benefit of any third person for any purpose, including, without
limitation, the establishing of any type of duty, standard of care or liability with respect toany third
person.

9.9 Assignment and Transfer. No assignment of this Agreement by either Party may be
made without the prior written approval of the other Party (which approval shall not be
unreasonably withheld) and unless the assigning or transferring Party's assignee or transferee shall
expressly assume, in writing, the duties and obligations under this Agreement of the assigning or
transferring Party. Upon such assignment or transfer, as well as assumption of the duties and

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 20240031-GU Attachment B
PAGE 22 Page 7 of 9

obligations, the assigning or transferring Party shall furnish or cause to be furnished to the other
Party a true and correct copy of such assignment or transfer and the assumption of duties and
obligations,

9.10 Governmental Authorizations; Compliance with Law. This Agreement shall be
subject to all valid applicable state, local and federal laws, orders, directives, rules and regulations
of any governmental body, agency or official having jurisdiction over this Agreement and the
transportation of Gas hereunder. Company and Shipper shall comply at all times with all
applicable federal, state, municipal, and other laws, ordinances and regulations. Company and/or
Shipper will furnish any information or execute any documents required by any duly constituted
federal or state regulatory authority in connection with the performance of this Agreement, Each
Party shall proceed with diligence to file any necessary applications with any Governmental
Authorities for any authorizations necessary to carry out its obligations under this Agreement. In the
event this Agreement or any provisions herein shall be found contrary to or in conflict with any
applicable law, order, directive, rule or regulation, the latter shall be deemed to control, but nothing
in this Agreement shall prevent either Party from contesting the validity of any such law, order,
directive, rule, or regulation, nor shall anything in this Agreement be construed to require either
Party to waive its respective rights to assert the lack of jurisdiction ofany governmental agency
other than the Commission, over this Agreement or any part thereof. In the event of such
contestation, and unless otherwise prohibited from doing so under this Section 9.10, Company
shall continue to transport and Shipper shall continue to take Gas pursuant to the terms of this
Agreement. In the event any law, order, directive, rule, or regulation shall prevent either Party
from performing hereunder, then neither Party shall have any obligation to the other during the
period that performance under the Agreement is precluded. If, however, any Governmental
Authority's modification to this Agreement or any other order issued, action taken, interpretation
rendered, or rule implemented, will have a material adverse effect on the rights and obligations of
the Parties, including, but not limited to, the relative economic position of, and risks to, the Parties
as reflected in this Agreement, then, subject to the provisions of Sections 3.3 and 3.4 of this
Agreement, the Parties shall use reasonable efforts to agree upon replacement terms that are
consistent with the relevant order or directive, and that maintain the relative economic position of,
and risks to, the Parties as reflected in this Agreement as of the Execution Date. As used herein,
"Governmental Authority" shall mean any United States federal, state, local, municipal or other
government; any governmental, regulatory or administrative agency, court, commission or other
authority lawfully exercising or entitled to exercise any administrative, executive, judicial,
legislative, police, regulatory or taxing authority or power; and any court or governmental tribunal.

(i) If any Governmental Authority asserting jurisdiction over the pipeline facility
contemplated in this Agreement, issues an order, ruling, decision or regulation not
covered by Section 3.3 or 3.4 of this Agreement (including denial of necessary permits or
amendments to existing permits) related to the operation, maintenance, location, or
safety and integrity compliance, including any new or revised enforceable regulatory
classification of the pipeline facility, as applicable, which is not reasonably
foreseeable as of the Execution Date and which results in a materially adverse effect
on either Party's rights and benefits under this Agreement, each Party shall use

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 2024003 1-GU Attachment B

PAGE 23

Page 8 of 9

commercially reasonable efforts and shall cooperate with the other Party to pursue
all necessary permits, approvals and authorizations, if any, of such applicable
Govermnental Authority, and to amend the terms and conditions of this Agreement,
in each case as may be reasonably required in order that provision of firm
transportation service under this Agreement shall continue; provided that neither
Party shall be required to take any action pursuant to this Section which is reasonably
likely to have a materially adverse effect on such Party's rights and benefits under
this Agreement.

(ii) If the Parties are unable or unwilling to reach agreement pursuant to this
Section 9.10, Company shall have the right to terminate this Agreement, without any
further obligations to Shipper, upon one hundred twenty (120) days’ prior written
notice to Shipper.

9.11 Applicable Law and Venue. This Agreement and any dispute arising hereunder shall
be governed by and interpreted in accordance with the laws of the State of Florida, without regard
for conflict of laws provisions. The venue for any action, at law or in equity, commenced by either
party against the other and arising out of or in connection with this Agreement shall be in a court
of the State of Florida having jurisdiction.

9.12 Counterparts. This Agreement may be executed in counterparts, all of which taken
together shall constitute one and the same instrument and each of which shall be deemed an
original instrument as against any Party who has signed it.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers or representatives.

COMPANY SHIPPER
Peninsula Pipeline Company, Inc. Florida Public Utilities Company
Bite Hancock OM Ag
By: By:
Bill Hancock Jeffrey S. Sylvester
Title: Assistant Vice President Title: President and Chief Operating Officer

Date: 04/18/2024 Date: bafia/2g24

ORDER NO. PSC-2024-0169-PAA-GU
DOCKET NO. 2024003 1-GU Attachment B

PAGE 24

Page 9 of 9

EXHIBIT A TO
FIRM TRANSPORTATION SERVICE AGREEMENT
BETWEEN
PENINSULA PIPELINE COMPANY, INC. AND
FLORIDA PUBLIC UTILITIES COMPANY
DATED

April 18, 2024

Description of Transporter Delivery Point(s)
1. Interconnect with Florida Gas Transmission at or near Lake Mattie Road

2. Interconnect with Florida Southeast Connection pipeline at or near East Hinson
Avenue

Description of Point(s) of Delivery
1. Atornear SR 557 and Buena Vista Drive
2. Ator near Lake Mattie Road and SR 559
3. Ator near Lake Tracy and US 17

Tota] MDTQ (Dekatherms): Di/Day: Pe
MHTP:

Total Monthly Reservation Charge: $M GHEE) Dekatherm)
This charge is subject to adjustment pursuant to the terms of this Agreement,

Unauthorized Use Rate (In addition to Monthly Reservation Charge): [/fach Day of
Unauthorized Use

ORDER NO. PSC-2024-0169-PAA-GU

DOCKET NO. 2024003 1-GU Attachment C
PAGE 25 Page | of 2
} ar 0 0125 025 0.5 Miles
oe
[oP3)
Legend x
tk Delivery Point
atx Gate Station
— Plant City North DP 2 saith
/—— Plant City North Transfer : = = > i
Plant City North Expansion PENINSULA

-—— Plant City North Existing (FPU)
Created: 11/13/2023

ORDER NO. PSC-2024-0169-PAA-GU DOCKET NO. 20240031-GU PAGE 26
Attachment C Page 2 of 2
New 1-4DRS
0.75
1.5
3 Miles
*
Davenport
Existing City Gata
New Polk City Rd DRS
New Buena Vista Drive DRS
Existing Haines City DRS
New SEC Interconnect
Lake Alfred
Legend
* PPC Acquired Existing FPU City Gate
* District Regulator Station
A New SEC Interconnect New Pipeline
- PPC Acquired Existing FPU Pipeline
1
Lake Mattie Expansion Created: 4/17/2024
PENINSULA PIPELINE