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DOCKET NO. 20170179 -GU <br />for a permanent increase in rates, as well as an interim increase in rates pending the <br />Commission's decision in this case. The Commission is the agency, under Florida laws, charged <br />with setting and regulating the rates, fees, and services of Florida utilities and will review the <br />Company's request. The Docket Number assigned by the Commission for this proceeding is <br />Docket No. 20170179 -GU. <br />The Company is asking that the Commission allow the Company to increase its rates and <br />charges to the extent necessary to generate additional gross annual revenues in the amount of <br />$19.3 million, which will enable the Company to continue to provide safe, reliable natural gas <br />service at a level the customers have come to expect, and to approve the Company's depreciation <br />study also submitted herewith in support of the Company's requested increase. The requested <br />increase will provide FCG with a reasonable opportunity to earn a fair rate of return of 6.32 <br />percent on the Company's plant and property used to serve its customers and an 11.25 percent <br />midpoint rate of return on FCC's common equity. The Company's request for interim relief <br />seeks permission to implement a temporary increase in an amount necessary to generate <br />additional revenues in the amount of $4,893,061, for the interim period before permanent rates <br />and charges go into effect in accordance with the Commission's final determinations in this <br />proceeding. <br />The Commission will utilize a "test year" for purposes of setting rates for FCG. The <br />Company has used a projected test year of January 1, 2018 through December 31, 2018 for <br />purposes of presenting its case, and believes this time period best represents actual conditions in <br />effect at the time new rates will go into effect, as compared with other prior periods. The <br />Company's jurisdictional 13 -month average rate base for the test year period is projected to be $- <br />299.3 million. Without the requested rate increase, the jurisdictional net operating income for <br />the Company in the same period is projected to be $9.3 million. The projected rate of return is, <br />consequently, projected to be 3.10 percent, while the return on common equity is projected to be <br />2.95 percent in the test year. As such, FCG asks that the Commission allow the Company an <br />overall rate of return of 6.32 percent, including a mid -point ROE of 11.25 percent. The resulting <br />revenue deficiency is $15.8 million. <br />The Company is also seeking to include the existing Safety, Access, and Facility <br />Enhancement program ("SAFE") distribution facility installations in rate base, consistent with <br />Chapter 366, Florida Statutes. <br />21Page <br />