Laserfiche WebLink
Docket No. 20170179=GU <br /> Florida City Gas <br /> Commission allow the Company an overall rate of return of 6.32 percent, including a mid-point <br /> ROE of 11.25 percent. The resulting revenue deficiency is $15.8 million. When the additional <br /> revenue requirement of$3.5 million associatedwith moving the Safety, Access, and Facility <br /> Enhancement program ("SAFE") installments into rate base is included, as contemplated by <br /> Commission order and as further discussed herein, this results in a total revenue increase request <br /> of$19.3 million. It should, however, be noted that moving the SAFE investments into rate base <br /> is ultimately revenue neutral to the Company as it is also proposing to make a corresponding <br /> adjustment to the current SAFE surcharge. The details regarding FCG's rate base, O&M <br /> expense, and the key drivers, as noted below, are included in the testimony and exhibit of FCG's <br /> witnesses and clearly demonstrate that the Company will be unable to recover the costs of <br /> providing safe and reliable natural gas service for its customers through current rates. <br /> 8) As further set forth in the testimony and exhibits of FCG's witnesses,there are three key <br /> drivers for FCG's request in this proceeding: (1) capital investments to enhance the safety and <br /> reliability of FCG's distribution system; (2) capacity challenges, which have prompted FCG to <br /> develop a liquefied natural gas ("LNG")strategy; and (3)the challenges associated with an aging <br /> workforce and the costs associated.with proactively addressing the pending skills and knowledge <br /> gap. Significant investments have been made by FCG to its system in response to federal <br /> regulatory changes regarding safety of natural gas facilities. FCG has also made investments to <br /> improve the reliability of its system and to enhance the ability of its employees to access <br /> facilities for maintenance and repairs, as well as to extend facilities to provide natural gas service <br /> to customers who would otherwise be unable to obtain such service. As further addressed <br /> herein, and in the testimony and exhibits of FCC's witnesses, the Company is also faced with <br /> capacity challenges that it proposed to address through a two-pronged approach involving the <br /> 5Page <br /> R _(o <br />