The company said that this is the first time that it has made such a request since 2002. Since its last base rate increase, Peoples Gas has added approximately 100,000 new customers.
To serve that new demand and address new federal requirements, the company has reportedly installed or replaced more than 1,500 miles of gas mains in the more than 200 communities it serves throughout Florida.
To address these cost increases and the investments the company has made to serve customers, Peoples Gas is requesting a base rate increase of $26.5 million. If the request is approved by the Florida Public Service Commission (FPSC), the average residential Peoples Gas bill is expected to increase by around 10%, effective summer 2009.
Bill Cantrell, president of the Peoples Gas System, said: Our team has done everything possible to delay the need to request an increase to our base rates. Unfortunately, with continued increases in the cost of providing high-quality natural gas service, we cannot put it off any longer.
