FPU to Request First Natural Gas Rate Relief Since 1994
WEST PALM BEACH, Fla., May 10 /PRNewswire-FirstCall/ -- The natural gas
division of Florida Public Utilities , an investor-owned utility operating in
five Florida locations, is filing a request with the Florida Public Service
Commission to increase natural gas rates and services by $8.2 million annually. FPU has reviewed the underlying reasons for the request, most of which result
from rising insurance, health care and pension costs along with increased
investments in distribution facilities. FPU's last natural gas rate increase
was in 1994, which clearly indicates that, over the past ten years, FPU has
done a very good job managing expenses and operating efficiently.
"Florida Public Utilities is committed to providing the finest service to our
customers and operating a reliable and efficient natural gas distribution
system. Like many businesses, FPU has faced higher operating costs due to
recent world and economic events. We believe the rate increase request is
necessary in order to continue to provide our customers with the outstanding
service on which they rely and with affordable natural gas, a clean and
efficient source of energy," said FPU President and CEO Jack English. Here are
some specific areas that have impacted Florida Public Utilities expenses: -- The events of September 11, 2001 caused dramatic increases in insurance
costs as well as retirement benefits.
-- The Company's environmental compliance costs have dramatically
increased by approximately $1 million annually.
-- Other significant factors include: compliance with the federally
mandated requirements of the Sarbanes-Oxley Act, additional internal
and external audits, increased capital expenses and the inflationary
effect on labor and materials.
The rate increase was filed May 10, 2004. The Florida Public Service Commission
may grant an interim rate increase by mid-summer and final rate relief by the
end of 2004. FPU's natural gas rates, even with the proposed rate increases,
will remain among Florida's lowest and will continue to be more cost effective
than alternative energy sources, including electricity.
Should the total requested rate increases be approved, a typical residential
customer using 20 therms of natural gas monthly will see increases of less than
12%. Commercial customers using an average of 300 therms monthly can expect a
rate increase of less than 13%.
FPU would like to assure customers that we will continue to explore and employ
every opportunity for savings and cost containment as we work to provide
exemplary service and a clean, efficient and dependable energy source.
Since 1924, Florida Public Utilities has provided safe, reliable and
competitively priced energy and value-added services. The Company serves
approximately 90,000 residential, commercial and industrial energy customers
throughout the state of Florida and has amassed one of the industry's foremost
safety records.
Florida Public Utilities is a valued and long-standing member of the community
who provides employees a positive work environment and advancement
opportunities. Safety, employee innovation, empowerment, and teamwork are
Florida Public Utilities' keys to success. For more information about FPU
contact Laura Scotten at 561.650.8433, or visit http://www.fpuc.com/ . DATASOURCE: Florida Public Utilities CONTACT: Laura Scotten of Florida Public Utilities, +1-561-650-8433 Web site: http://www.fpuc.com/
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