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11/07/2017 (2)
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11/07/2017 (2)
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Last modified
12/13/2017 4:10:29 PM
Creation date
12/13/2017 3:45:06 PM
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Meetings
Meeting Type
BCC Regular Meeting
Document Type
Agenda Packet
Meeting Date
11/07/2017
Meeting Body
Board of County Commissioners
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Docket No.20170179-GU <br /> Florida City Gas <br /> approximately 108,000 residential, commercial and industrial natural gas customers in Florida's <br /> Miami-Dade, Brevard, St. Lucie, Palm Beach, Glades, Hendry, Broward, and Indian River <br /> counties. <br /> I, REQUEST FOR PERMANENT RATE RELIEF <br /> 4) FCG filed its last rate case in 2003 and its current rates were established in Docket No. <br /> 20030569-GU, by Order No. PSC-2004-0128-PAA-GU, issued February 9, 2004, using a test <br /> year ending September 30, 2004. The case was handled as a Proposed Agency Action <br /> proceeding under Section 366.06(4), Florida Statutes. The outcome of that case was that the <br /> Commission determined that FCG's rate base for the projected test year was$119,897,447. The <br /> Commission then granted the Company a revenue increase of $6,699,655 with a return on <br /> common equity("ROE")midpoint of 11.25%. <br /> 5) Since that time, FCG has maintained its focus on the customer as reflected by its service <br /> quality, while also effectively managing ing its costs such that it has been able to avoid seeking a <br /> g <br /> base rate increase for nearly 14 years. As set forth in the testimony and exhibits of FCG's <br /> witnesses, cost saving measures, such as becoming a part of the AGLR shared services model <br /> deployment of various technology <br /> and FCG's <br /> solutions, have created significant operational <br /> efficiencies that have helped the Company maintain its rates at the same level over this extended <br /> period. The Company has seen, however, an increase in its cost to serve customers, which has <br /> contributed to its declining rate of return. At present, the Company's current rates and charges <br /> no longer allow it to earn a fair and reasonable rate of return nor do they yield reasonable <br /> compensation for services provided, which FCG is entitled to under Section 366.06(3), Florida <br /> Statutes. As of June 2017, FCG was earning an overall rate of return of 4.86% on a pro forma <br /> adjusted basis with an ROE of 7.91%, excluding the AGLR acquisition adjustment and <br />
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