ORLANDO, Fla.--(BUSINESS WIRE)--

TECO Peoples Gas will install a compressed natural gas (CNG) fueling station and provide utility service to the city of Orlando for the first time under a new rate.

In 2014, the Florida Public Service Commission created a new rate that allows Peoples Gas to design, construct, own and maintain CNG stations and deliver natural gas to the outlet of the dispensers for vehicle fueling. Customers do not make any upfront investment but instead pay for the service through monthly utility billing.

"Through our Green Works initiative, Orlando has become one of the most sustainable cities in the country, and part of that achievement has come from having one of the greenest fleets," said Orlando Mayor Buddy Dyer. "I am proud to partner with TECO to provide the infrastructure for our new solid waste vehicles that operate on cleaner fuel and further our efforts to create a cleaner, greener Orlando."

"This is just another great example of how far we've come with building an infrastructure to serve a growing natural gas vehicle industry across Florida," said Keith Gruetzmacher, senior manager of alternative fuel vehicle programs for Peoples Gas. "We're one of the fastest-growing compressed natural gas markets in the U.S."

Fleets that run on compressed natural gas have lower exhaust and carbon emissions compared to diesel and gasoline. Natural gas engines have an average of 80 percent to 90 percent lower decibel level than diesel engines, and natural gas is up to 50 percent less expensive than gasoline or diesel.

The compressed natural gas station will be located at the city of Orlando's fleet maintenance facility and will be dedicated to fueling the city's fleet of refuse trucks. It is expected to be in operation by October 2015.

Peoples Gas System, Florida's largest natural gas distribution utility, is part of the TECO Energy family of companies. Peoples Gas serves more than 350,000 customers across Florida. TECO Energy Inc. (NYSE: TE) is an energy-related holding company with regulated electric and gas utilities in Florida and New Mexico: Tampa Electric, Peoples Gas System and New Mexico Gas Co. Other TECO Energy subsidiaries include TECO Coal, which owns and operates coal-production facilities in Kentucky, Tennessee and Virginia.