The Florida Public Service Commission (FPSC) has approved a settlement agreement that resolves the rate increase request filed by Peoples Gas System, Inc. (PGS). The decision was announced on Tuesday in Tallahassee.
The settlement was the result of negotiations between PGS, the Office of Public Counsel, and the Florida Industrial Power Users Group. It will provide regulatory stability for both customers and the utility until the end of 2028.
The agreement includes several key terms. The revenue requirement increase for 2026 has been reduced from about $103.6 million to $66.7 million. For 2027, the net revenue increase will be $25 million instead of the previously requested $26.7 million. There is also a possible adjustment of up to $5 million in 2028 to fund pressure and capacity improvements, but this will require a future Commission review.
PGS’s requested Return on Common Equity has been lowered from 11.1% to 10.3%, with an equity ratio set at 54.7%. The agreement is designed to allow PGS to earn a reasonable return while maintaining safe and reliable natural gas service for its customers. The minimum term of the agreement runs through December 2028, providing predictable rates for customers.
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 Commission’s approval brings closure to all issues in this case. More details can be found by searching Docket No. 20250029-GU on the FPSC’s website.
PGS serves about 508,000 customers in 43 counties across Florida.
