The Florida Public Service Commission (FPSC) has approved a settlement agreement that resolves the base rate increase petition filed by Peoples Gas System, Inc. (PGS). The decision was announced Tuesday in Tallahassee.
The settlement was reached through collaboration between PGS, the Office of Public Counsel, and the Florida Industrial Power Users Group. It aims to provide regulatory certainty for both customers and the utility through the end of 2028.
Under the terms of the agreement, the total requested revenue requirement increase for 2026 will be reduced from about $103.6 million to approximately $66.7 million. For 2027, the requested net revenue increase will decrease from roughly $26.7 million to $25 million. There is also a provision for a possible adjustment of up to $5 million in 2028 to support pressure and capacity improvements, which would be subject to a future Commission proceeding.
PGS’s requested Return on Common Equity will be lowered from 11.1% to 10.3%, with an equity ratio set at 54.7%. The agreement is intended to allow PGS the opportunity to earn a reasonable return on its rate base while continuing to provide safe and reliable natural gas service.
According to the FPSC, “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.” The agreement also establishes a minimum term through December 2028, creating rate predictability for customers.
The Commission’s approval resolves all issues in the case. Peoples Gas System serves about 508,000 customers across 43 counties in Florida.
For more information, the public can visit the FPSC’s website and search Docket No. 20250029-GU.
