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Docket No.20170179-GU <br /> Florida City Gas <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 /> ted test <br /> Commission approve the projected the P J <br /> As part of this Petition, the Company requests thatpp <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 /> – -- -- -- – - --- – — — 41Page <br />