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FPSC Staff Files Recommendations For March Conference Regarding Gas Utility’s Proposed Transportation Balancing Charge
Petition by Florida City Gas requesting approval to implement a Tariff Rider “E” Transportation Balancing Charge “to allocate certain capacity costs incurred on behalf of Transportation Customers to balance differences between their· monthly gas nominations and consumption…FCG submits that the proposed Balancing Charge will more fairly allocate existing costs between its Sales Customers and Transportation Customers and better align with the rate-making principle of cost causation.”
On February 22, 2024, Staff filed recommendations for 3/5/24 conference. Of note, Staff recommends: (1) FPSC “approve FCG’s proposed transportation balancing charge and associated tariff,” noting that “balancing charge would allow FCG to recover capacity and storage costs in a more equitable manner between transportation and sales customers and reduce cross-subsidization between transportation and sales customers”; (2) FCG “incorporate actual revenues received from the balancing charge as a credit in the monthly PGA filings and in the annual final actual PGA true-up filing”; and (3) reported the following bill impact estimates: (i) “small commercial GS-1 transportation customers who consume 174 therms per month would see an increase of approximately $1.39, including Gross Receipts Tax”; and (ii) “a credit of approximately $1 million to the PGA would reduce the maximum levelized 2024 PGA factor from $0.84816 per therm to $0.82773 per therm, a reduction of approximately two cents per therm for the sales customers.”
Staff Recommendations for 3/5/24 Conference (02/24/2024)
FPSC Docket No. 2023-0110 (09/26/2023)
