At this week’s Commission Conference, the Florida Public Service Commission (PSC) approved continued funding of natural gas pipeline replacement programs to improve the safety of Florida’s infrastructure.
Pipeline improvement programs receiving 2024 funding include: Florida Public Utilities Company’s (FPUC) Gas Utility Access and Replacement Directive (GUARD), Peoples Gas System’s (PGS) Cast Iron/Bare Steel Pipe Replacement Rider (Rider), and Florida City Gas’ (FCG) Safety, Access, and Facility Enhancement (SAFE) program.
“Since the inception of these programs, Florida’s natural gas utilities have done an outstanding job of improving the safety and efficiency of their pipeline infrastructure,” said Commissioner Gabriella Passidomo. “I commend each utility’s commitment to customer safety, and I’m pleased that they are continuing to further improve and maintain Florida’s reliable natural gas service.”
FPUC’s first pipeline replacement program, the Gas Reliability and Infrastructure Program (GRIP), began in 2013 and was completed in July 2023. The purpose of GRIP was to recover the cost of accelerated replacement of cast iron and bare steel distribution mains and services that are subject to corrosion through a separate surcharge on customers’ bills.
In the recently concluded FPUC rate case, the utility moved GRIP’s revenue requirement to rate base, with any remaining GRIP amounts included in the beginning balance for its new GUARD program. The GUARD program allows FPUC to recover costs to replace problematic pipes and facilities and to relocate certain facilities in rear easements and other difficult to access areas.
Approved by the PSC in 2012, the Rider program allows PGS to recover costs for accelerated replacement and modernization of natural gas pipelines. The surcharges were first implemented in January 2013.
FCG’s SAFE program, approved by the Commission in 2015, relocates existing gas mains and associated facilities from rear lot easements to the street front, improving access and customer service. This program is projected to finish in 2025.
Effective January 1, 2024, the monthly GUARD surcharge is $0.65 for a FPUC residential customer using 20 therms, compared to the GRIP surcharge of $0.43. The new monthly Rider surcharge is $0.06 for a PGS residential customer using 20 therms. The new SAFE fixed monthly surcharge for FCG customers using less than 6,000 therms per year increased from $0.44 to $3.17. For FCG customers using more than 6,000 therms per year, the surcharge increased from $0.98 to $5.44.
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