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A. The Florida Public Service Commission approved increases to the Customer Charge and the base rate portion of the Distribution Charge grouping on your bill, as well as some of our service charges.
The Distribution Charge line item on your bill is a grouping of several costs including your base rate, a charge for energy conservation programs, legacy pipeline replacement and other costs. The portion of the distribution charge that will increase as a result of our rate request is the base rate. The non-base rate portions make up less than half of the grouping and are adjusted annually. The Distribution Charge on your bill is calculated based on your usage.
Other charges within the Distribution Charge grouping – for energy conservation programs and legacy pipeline replacement – are adjusted each January and will decrease in 2021. Taking into account all of the increases and decreases occurring in January, the items going down offset some of the increases.
A. After deferring its original filing for 60 days as a result of the coronavirus pandemic, on June 8, 2020 Peoples Gas filed a petition with the Florida Public Service Commission (PSC) requesting a future increase in base rates that would take effect in early 2021. While we have kept costs stable in an effort to avoid customer rate increases for 12 years, we requested an increase in base rates to enable us to continue to deliver natural gas throughout Florida.
In October, representatives from Peoples Gas and the intervening parties, including the Office of Public Counsel, met and agreed to file a joint motion requesting the PSC approve a settlement. As a result of the settlement, which was approved on Nov. 19, the impact to customers' bills will be less than we originally proposed.