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Docket No. 20170179 -GU <br />Florida City Gus <br />associated regulatory assets, and a mere 6.46% with the acquisition adjustment and regulatory <br />assets included. Without the requested revenue increase, FCG projects that its overall rate of <br />return will fall to 3.10%, well below its currently authorized rate of return of 6.27%. As such, <br />FCG's ability to continue to provide consistent reliable service at the level to which our <br />customers expect and deserve will be jeopardized. Moreover, FCG's ability to attract capital at <br />reasonable rates will be impaired, resulting in potentially even higher rates. The requested rate <br />relief will ensure that FCG can continue to provide the level of service to its customers that it <br />currently provides as well as continued reliable access to natural gas supplies. <br />6) The Company has used the projected period ending December 31, 2018, as the projected <br />test year for this filing. This period represents the most relevant period upon which the <br />Company's operations should be analyzed for purposes of establishing rates for the period new <br />rates will be in effect. This test period will reflect actual conditions and be indicative of the <br />actual revenues, expenses, and investment during the first 12 -months that new rates will be in <br />effect. The proposed test year will, therefore, best match projected costs and investment with <br />projected revenues for the Company for the period following the date new rates go into effect. <br />As part of this Petition, the Company requests that the Commission approve the projected test <br />year January 1, 2018 through December 31, 2018 as the appropriate test year and more <br />representative of actual conditions and the Company's future operations than prior periods. <br />7) The Company's jurisdictional 13 -month average rate base for the test year period is <br />projected to be $299.3 million. Without the requested rate increase, the jurisdictional net <br />operating income for the Company in the same period is projected to be $9.3 million. The <br />projected rate of return is, consequently, projected to be 3.10 percent, while the return on <br />common equity is projected to be 2.95 percent in the test year. As such, FCG asks that the <br />P 4-5- <br />