state's electric energy and environmental policy and governs the building of new generation involving steam capacity of 75 MW or
more, requires that applicants demonstrate that a plant is needed prior to receiving construction and operating permits. The effect of
the PPSA has been to limit the number of unregulated generating units with excess capacity for sale in the wholesale power
markets in Florida.
fuel that is a pass-through cost, has averaged approximately 2% of Tampa Electric's total revenue.
plant with a steam cycle greater than 75 MW. The rules, which allow independent power producers and others to bid to supply the
new generating capacity, provide a mechanism for expedited dispute resolution, allow bidders to submit new bids whenever the
IOU revises its cost estimates for its self-build option, require IOUs to disclose the methodology and criteria to be used to evaluate
the bids, and provide more stringent standards for the IOUs to recover cost overruns in the event the self-build option is deemed the
most cost-effective.
other proceedings initiated by PGS, FPSC staff or other interested parties.
as transmission and distribution pipeline integrity management.
rates effective in June 2009.
top of the range. In December 2010, PGS and the Office of Public Counsel entered into a stipulation and settlement agreement
requesting FPSC approval that $3.0 million of the provision to be refunded to customers in the form of a credit on customers' bills
in 2011, and the remainder be applied to accumulated depreciation reserves. On Jan. 25, 2011 the FPSC approved the stipulation.
the transportation of gas it delivers to its customers. These charges may be adjusted monthly based on a cap approved annually
during an FPSC hearing. The cap is based on estimated costs of purchased gas and pipeline capacity, and estimated customer usage
for a calendar year recovery period, with a true-up adjustment to reflect the variance of actual costs and usage to projected charges
for prior periods. In November 2011, the FPSC approved rates under PGS's PGA for 2012 for the recovery of the costs of natural
gas purchased for its distribution customers.
energy conservation programs, which are mandated by Florida law and approved and supervised by the FPSC. PGS is permitted to
recover, on a dollar-for-dollar basis, prudently incurred expenditures made in connection with these programs if it demonstrates the
programs are cost-effective for its ratepayers.
commercial customers is from companies providing other sources of energy, including electricity, propane and fuel oil. PGS has
taken actions to retain and expand its natural gas distribution business, including managing costs and providing high quality service
to customers.