FPSC Issues Decision on FCG 2025 Depreciation Study and Reserve Amortization Plan

The Florida Public Service Commission (FPSC) today established updated depreciation rates for Florida City Gas (FCG) following the hearing in December 2025 on the company's proposed 2025 Depreciation Study. The Commission also directed that the approved depreciation reserve surplus be addressed over the remaining service life of the related assets. Today's decision does not change the rates customers pay for natural gas service from FCG.

The Commission's decision follows a comprehensive review process, including discovery, testimony, and an evidentiary hearing.

FCG filed its petition on February 24, 2025, seeking approval of updated depreciation parameters and rates based on its 2025 Depreciation Study. The Company also requested approval to amortize a calculated depreciation reserve surplus, as reflected in its final amended study filed November 4, 2025.

After reviewing the evidence in the record, the Commission determined that revised depreciation rates are supported. The Commission found that changes in ownership, updated accounting practices, plant investment levels, and operational considerations support revising the Company's depreciation parameters.

"Our responsibility is to carefully review the facts and ensure that utility costs are allocated fairly between current and future customers," said Chairman Smith. "This decision reflects a thorough examination of the company's data, testimony, and long-term infrastructure needs. Our goal is always to protect customers while ensuring the continued safe and reliable operation of Florida's natural gas systems."

The Commission's decision confirms that the company's filing complies with state depreciation rules and that sufficient evidence supports revising the currently prescribed depreciation rates.

For more information visit www.FloridaPSC.com and reference Docket No. 20250035-GU.