Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Utility consultants tell Milton council current rates leave gap; propose staged reviews and options for connection fees
Summary
Florida Gas Utility presented a preliminary rate study to the Milton City Council, saying current rates (applied to FY2024 usage) would generate about $3.35 million in revenue versus a cited net margin need of roughly $4.16 million — an estimated shortfall of about $814,000 (≈24.3%). The utility recommended further study in June-July and possible rate adjustments effective Oct. 1, 2026, and outlined customer-connection financial tests for new hookups.
Tom Jeffrey, finance manager and CFO for Florida Gas Utility, told the Milton City Council at its work session that a preliminary rate study using fiscal year 2024 billing determinants and the city’s current rates (effective Oct. 1, 2025) projects roughly $3,349,000 in revenues. He said the gas department’s net-margin revenue target in the FY2026 budget is about $4,163,000, producing an estimated margin shortfall of about $814,000 — roughly 24.3 percent.
The study is an academic exercise, Jeffrey said: “We’re not saying under any circumstance we are $800,000 short in our natural gas budget here tonight. That’s not what this is. It’s just a paper exercise to show you, if you want to adjust your rates, this is the means to go about.” He told council that staff and the…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
