The Florida Public Service Commission (FPSC) has approved a settlement agreement regarding the base rate increase request from Peoples Gas System, Inc. (PGS). The agreement was reached through collaboration between PGS, the Office of Public Counsel, and the Florida Industrial Power Users Group, and will provide regulatory stability for customers and the utility until the end of 2028.
Under the terms of the settlement, the revenue requirement increase for 2026 has been reduced from the original request of about $103.6 million to approximately $66.7 million. For 2027, the net revenue increase has been lowered from $26.7 million to $25 million. The settlement also allows for a possible adjustment of up to $5 million in 2028 to support pressure and capacity improvements, pending a future Commission review.
PGS’s requested Return on Common Equity was reduced from 11.1% to 10.3%, with an equity ratio set at 54.7%. According to the settlement, this framework is designed to enable PGS to earn a reasonable return on its rate base while continuing to provide safe and reliable natural gas service.
The agreement establishes a minimum term through December 2028, creating greater rate predictability for customers. The FPSC stated, “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.”
This approval resolves all issues related to the rate case. Peoples Gas System serves around 508,000 customers across 43 counties in Florida.
For more information, visit the FPSC’s website and search Docket No. 20250029-GU.
