Florida PSC approves higher cost recovery for FPUC’s gas pipeline replacement program

Mike La Rosa, Chairman at Florida Public Service Commission
Mike La Rosa, Chairman at Florida Public Service Commission
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The Florida Public Service Commission (FPSC) has approved the 2026 cost recovery factors for Florida Public Utilities Company’s (FPUC) Gas Utility Access and Replacement Directive (GUARD) program. The GUARD initiative, which was first approved in 2023, is intended to speed up the replacement of problematic natural gas pipelines and facilities. It also aims to move mains and service lines from rear easements and hard-to-reach areas to safer, more accessible front-lot locations.

Projects under the GUARD program are selected based on risk assessments conducted through FPUC’s Distribution Integrity Management Program as well as by an independent contractor. These projects focus on high-risk and high-consequence areas with the goal of improving both safety and reliability in FPUC’s natural gas distribution network.

The FPSC has set a total GUARD revenue requirement of $10.18 million for 2026. This figure includes a remaining under-recovery amount of $42,599 carried over from 2025. The approved cost recovery covers expenses such as depreciation, fuel-line extensions needed for meter relocations, customer notifications, and property taxes.

For residential customers using 20 therms per month, the GUARD surcharge will rise to $5.20 in 2026, up from $2.22 in 2025.

In terms of infrastructure investment, FPUC plans to spend about $24.9 million on GUARD-related improvements during 2026. This will bring the total qualified investment in the program to $110.5 million since its inception. The planned work next year will include significant activity across Palm Beach, Seminole, Polk, and Volusia counties where obsolete or Aldyl-A pipes, span pipes, under-building pipes will be replaced and some facilities moved from rear-lot easements to street fronts.

FPUC currently provides service to approximately 33,100 retail customers in its Northwest and Northeast Divisions.

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