Peoples Gas, FPUC and FCG natural gas bills to go up in 2024. How will your gas bill change?
If you use natural gas, your rates will be going up in 2024. But you'll get safer pipes out of it.
On Thursday, the Florida Public Service Commission (PSC) approved increases to programs that improve, upgrade or replace natural gas pipelines in the state. Those programs include Florida Public Utilities Company’s (FPUC) Gas Utility Access and Replacement Directive (GUARD), Peoples Gas System’s Cast Iron/Bare Steel Pipe Replacement Rider (Rider), and Florida City Gas’ (FCG) Safety, Access, and Facility Enhancement (SAFE) program.
What do natural gas pipe replacement programs do?
Previous gas pipes in Florida were made from cast-iron or bare steel, subject to age, corrosion, metal loss and leakage. A study in 2014 found that 30% of Florida's pipes were (then) at least 50-100 years old and included some of the oldest gas pipes in the nation. Natural gas companies have been working to replace old pipes with newer ones made from polyethylene and coated metal, but it's not cheap.
Gainesville Regional Utilities replaced their old pipes in 2015. In 2019, Pensacola Energy completed a three-year project to replace its own century-old network of 531 miles of cast-iron and bare steel pipes, costing roughly $10 million.
FPUC — which serves approximately 120,000 customers in northeast, northwest, and parts of central Florida — completed its first pipe replacement program, the Gas Reliability and Infrastructure Program GRIP, in July of this year, ten years after it began. The new GUARD program will allow FPUC to recover costs replacing "problematic" pipes and to relocate some facilities in rear easements and other difficult-to-access areas, the PCS said.
Peoples Gas System, a branch of Tampa-based TECO Energy that serves approximately 470,000 customers throughout the state, announced its own accelerated replacement and modernization program in 2012. At that time they had already been replacing old pipes for a decade and reported that about 4% of their pipes were still made from old materials.
Florida City Gas, which serves about 120,000 customers across eight counties in Florida, is expected to complete its SAFE program, which relocates existing gas mains and related facilities from rear lot easements to street fronts, in 2025, the PCS said.
“Since the inception of these programs, Florida’s natural gas utilities have done an outstanding job of improving the safety and efficiency of their pipeline infrastructure,” said PCS Commissioner Gabriella Passidomo. “I commend each utility’s commitment to customer safety, and I’m pleased that they are continuing to further improve and maintain Florida’s reliable natural gas service.”
Florida City Gas sold? Delaware company to acquire Florida City Gas from FPL's parent in $923 million deal
How much are natural gas fees going up in Florida?
FPUC customers using 20 therms will see a monthly surcharge of $0.65, a rise from the previous $0.43
PGS customers will be charged an additional $0.06 monthly
FCG will increase its SAFE program surcharge from $0.44 to $3.17 for those using less than 6,000 therms per year, and from $0.98 to $5.44 for higher-usage customers
Utilities going down: FPL customers to see lower storm costs in 2024. How much will you save on your power bill?
Are electric power bills going up in 2024?
FPL customers will see their bills drop a bit in the first three months of next year. TECO customers will get a break through 2024, despite a new rate hike.
Why? Because the costs of restoring power after recent hurricanes were less than expected, so the costs passed on to customers won't be as much.
FPL customers will save about $8.65 a month, the Florida Public Service Commission (PSC) said, and TECO customers will see a drop of about $8 but with a previously approved rate hike of $1.58, your actual savings will be about $6.50.
This article originally appeared on The Daytona Beach News-Journal: Natural gas rates in Florida: Pipe replacement costs bring higher fees
