Florida Commission Authorizes Peoples Gas’ Request to Track COVID-19 Costs

The Florida Public Service Commission on Aug. 18 approved Peoples Gas Systems’ request for an accounting mechanism to track and record additional costs brought about by the COVID-19 pandemic. The mechanism allows the utility to request approval of cost recovery through rates at a later time.

The implementation of this tracking system provides a method to survey and index mounting debts, write-offs for uncollectible accounts, and other expenses incurred due to the public health crisis. The commission had previously approved a similar regulatory mechanism for Gulf Power Company and will likely issue more as utilities across the state reckon with the repercussions of the pandemic on consumption. The commission will review the actual costs incurred and potential offsets when the utility seeks approval of cost recovery.

As part of the approval, Peoples Gas will be required to file monthly reports with information concerning the costs incurred, any cost assistance received, and any cost savings realized. The first of these reports is due on Oct. 1 and will be submitted on a monthly basis thereafter.

Since the onslaught of COVID-19, the company’s uncollected accounts have surpassed 12 percent of its accounts receivable, totaling to an amount of approximately $2.3 million. Safety-measure costs related to efforts to comply with guidelines have been included in the tracking mechanism; personal-protective equipment, additional cleaning and sanitation, and monitoring the health of employees are all precautions that have ascended as priorities.

Peoples Gas System, a subsidiary of Emera Inc., is Florida’s largest natural gas distribution utility provider, serving approximately 370,000 customers across the state.