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Florida City Gas <br />FPSC Natural Gas Tariff <br />Volume No. 9 Original Sheet No. 78 <br />SAFETY, ACCESS AND FACILITY ENHANCEMENT (SAFE) PROGRAM <br />Applicable to all Customers served under the Rate Schedules shown in the table below <br />except for those Customers receiving a discount under the AFD Rider. <br />Through its SAFE Program, the Company has identified the potential replacement <br />projects focusing initially on area of limited access/pipe overbuilds, and risk assessment for <br />Rear Lot Mains and Services considering: <br />i. The pipe material; <br />ii. Leak incident rates; <br />iii. Age of pipeline; <br />iv. Pressure under which the pipeline is operating. <br />The Eligible Infrastructure Replacement includes the following: <br />Company investment in mains and service lines, as replacements for existing Rear Lot <br />Facilities, and regulatory station and other distribution system components, the installation of <br />which is required as a consequence of the replacement of the aforesaid facilities that: <br />do not increase revenues by directly connecting new Customers to the plant asset; <br />ii. are in service and used and useful in providing utility service; and <br />iii. that were not included in the Company's rate base for purposes of determining the <br />Company's base rates in its most recent general base rate proceeding. <br />The Company is recovering its revenue requirement on the actual investment amounts. <br />The revenue requirements are inclusive of: <br />Return on investment as calculated using the Company's weighted average cost of <br />capital as calculated in the Company's most recent year-end surveillance report; <br />2. Depreciation expense (calculated using the currently approved depreciation <br />rates); <br />3. Customer and general public notification expenses associated with the SAFE <br />Program incurred for: <br />Issued by: Carolyn Bermudez Effective: <br />Vice President, Florida City Gas <br />0,4-ip-3 <br />