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Peoples Gas to raise rates 7%

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By RUSSELL RAY

rray@tampatrib.com

Published: May 20, 2009

TAMPA - Starting next month, customers of Peoples Gas, Florida's largest natural gas utility, will see their bills rise about 7 percent.

Tuesday, the Florida Public Service Commission approved a $19.1 million increase in base service rates, well below the request for $26.4 million.

The bill for an average residential customer will rise by $2.82 to $39.95 a month.

Peoples Gas is a subsidiary of Tampa-based TECO Energy Corp., serving 334,000 customers in more than 20 counties.

Consumer advocates argued that the utility's projected costs were inflated and that its request was far too high.

"We understand that money is tight for many Floridians right now," said commission Chairman Matthew Carter. "The commission carefully considered Peoples' request to ensure that only reasonable and necessary costs are passed on to customers."

The utility said higher rates are needed to cover the cost of meeting increased demand and to pay for the replacement of more than 1,500 miles of pipe. The company said it has added nearly 100,000 customers since its last base rate increase in 2003.

Reporter Russell Ray can be reached at (813) 259-7870.

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