Fort Pierce — The Fort Pierce Utilities Authority board on Oct. 7 voted to commit to long‑term natural gas transmission capacity on Florida Gas Transmission’s Phase 9 expansion, approving a proceeding agreement to reserve 1,750 decatherms (MMBtu) per day year‑round with an anticipated in‑service date in September 2028.

Katie Hall, general manager and CEO of Florida Gas Utility (FGU), told the board the opportunity to subscribe to long‑term capacity arises infrequently — the last large expansions occurred roughly 15–20 years apart — and that cities near the peninsula’s end of the pipeline increasingly face scarcity as statewide gas demand grows. “You actually have to reserve the space in the pipe for your gas to flow,” Hall said, explaining capacity is separate from physical gas supply and is sold as a limited commodity on FGT.

Board debate focused on cost, timing, remarketing risk and growth assumptions. Hall presented the economics: the proposed FGT rate for the new capacity is $1.395/MMBtu (about 14¢ per therm), and reserving 1,750 MMBtu/day would add an estimated $890,000 in incremental capacity cost relative to FPUA’s oldest (very low‑cost) capacity. FGU’s modeling showed a worst‑case all‑in cost near $1.1 million annually if none of the new capacity can be remarketed; staff estimated that worst‑case would translate to about $2 per customer per month if no offsetting sales occurred, but that as loads grow the per‑customer impact would decline.

Board members asked for additional historical detail and sensitivity analysis before and after the vote. Chairman Fee and Miss Davis both expressed concern about the magnitude of ongoing O&M costs and asked staff to provide comparison data with similar utilities, historical market purchases and a sensitivity analysis showing potential bill effects. Staff committed to provide that information to the board and to work with FGU on remarketing assumptions.

Vote and outcome
The board approved the proceeding agreement to reserve the Phase 9 capacity by roll call: Miss Bennett — yes; Miss Davis — no; Miss Gibbons — yes; Mayor Hudson — yes; Chairman Fee — no. The motion passed 3–2. Staff noted the agreement includes no scheduled payments until the pipeline is placed in service, but it establishes a binding commitment that FGT needs to size the new facilities.

Ending: Staff will provide the requested historical cost comparisons, remarketing sensitivity analyses and projected customer bill impacts to the board. FGU said the last major open season that resulted in new pipeline capacity finished in 2011 and that the current timing aligns with expected regional growth and potential future demand from electric generation and LNG users.