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Gulf Power To Seek Rate Increase
May 27, 2011
Gulf Power Co. this summer plans to ask for a $95 million increase in base rates, arguing that the cost of supplying electricity to the Panhandle has jumped during the past decade.
The Pensacola-based utility filed a document this month with the state Public Service Commission that outlines the proposal.
If granted, the proposal would translate to a 21.5 percent increase over Gulf’s 2010 base-rate revenues of $442 million — though it is too early to know how such a hike would affect individual customers’ bills.
Company spokeswoman Sandy Sims said Gulf Power has not sought base-rate change in 10 years. She said the company has “pushed off and pushed off as long as we can” any increases, but it needs higher rates to help protect quality of service.
“We wouldn’t be asking for it at this point if it wasn’t necessary,’’ Sims said Thursday.
Gulf likely will file a detailed proposal with the Public Service Commission in July, starting a months-long review process and hearings. Sims said the company hopes new rates will take effect in April 2012, though it also wants a so-called “interim” rate increase later this year that would involve a smaller amount.
State Public Counsel J.R. Kelly, whose office represents consumers in utility cases, said it is premature to know whether Gulf Power can justify the $95 million increase. But he said his office will closely examine the proposal.
“We will have our experts lined up and ready to contest, I’m sure, many of their issues,’’ Kelly said.
Gulf Power likely will be the first of three electric utilities that will take base-rate cases to the Public Service Commission during the next year. Florida Power & Light and Progress Energy Florida are operating under rate plans that end December. 31, 2012, and Kelly said he expects them to file new proposals late this year or in early 2012.
Base rates pay for many of the day-to-day operations of utilities. But they don’t include costs for such things as power-plant fuel and certain types of environmental upgrades.
Gulf and the other utilities go before the Public Service Commission each year to get approval for passing along those costs to customers. The costs fluctuate, which can lead to customers facing higher bills if, for example, the cost of coal or natural gas increases.
With about 428,000 customers, Gulf Power is the dominant utility in the Panhandle. Rates are set differently for residences and businesses, and it is unclear how any increases would be spread among Gulf’s customers.
The document that outlines the proposed increase was filed with the Public Service Commission on May 9. In the document, Gulf Power said it has faced increased infrastructure costs during the past decade, such as the cost of adding 1,000 miles of new power lines.
“Gulf has avoided a base-rate proceeding for as long as possible,’’ said the document, signed by company President and CEO Mark Crosswhite. “An increase in base-rate revenues is now necessary to maintain a reliable electric system and to preserve our financial integrity, which is in the long-term best interest of our customers.’’
Gulf Power received new revenues during the past decade because of growth in Northwest Florida, but Sims said such growth only partially offsets the higher costs.
Kelly took issue with the idea that the utility should receive approval because it hasn’t filed a base-rate case in so long. He pointed to factors such as customer growth and improved technology, which can reduce expenses.
“That, in and of itself, is never a valid argument,’’ he said.
By Jim Saunders
The News Service of Florida
Comments
22 Responses to “Gulf Power To Seek Rate Increase”
Florida has deregulated power companies. It is time that we have a choice in Pensacola like many others in the country. Just down the road Escambia River Electric Co-op just gave their customers a decrease in rates. That’s because the customers have a choice. In the Pensacola area 19.4% of the population live below the poverty level. In the 32505 zip code area it is 39.20%. 74 % of single mothers live below the poverty level in Pensacola. The population is being exploited –too busy trying to survive to take time to be an activist. The leaders do not hear or care to address the needs of the population. A monopoly on something needed to survive can lead to oppression. The energy companies including oil and gas know this and are determining ways to oppress and profit.
We must joing together and get a choice in Pensacola.
Why do we pay a fuel surcharge? Doesn’t the cost I pay for electricity cover the fuel? Other states do not charge for fuel.
We can barely afford the bills now. We don’t want a hand out, just a break on the rising power bills. Last time I spoke to someone at Gulf Power, they told me that I wasn’t using more electricity, just paying more. They had multiple rate increases in one year, and now another.
Gulf Power just had a rate increase. Which was this past year. Now another one. I can barely afford utilities as it is.
another way to reduce your power bill on cool nights turn the ac off opean your window let the dog sleep by the window and put a loaded gun by your bed
It’s going to come down to all of us working 2-3 jobs to make it these days
It is so frustrating to see the utilities go up..everything keeps going up but our paychecks remain the same. I value my power and lights just as much as anyone else but I wonder where the breaking point is when things added up become more than the paycheck. I work hard and I know we all do, but there has to be a solution for all the increases….anyone else notice how the price of our grocery items has either went up or stayed the same, but the packages are smaller.
I work for a utility company (not in FL), and I personally am sick and tired of my company bragging about record profits and then raising rates. I see both sides of it every day. Trying to make ends meet, then your provider jacks up the price like you can afford it with no problem. I’m in the same boat as everyone else. Its politics and greed. But if you see the guys out working on the lines in the heat or cold, or in the rain, don’t frown on them. They’re not the bad guys. Be thankful we have people that will brave the elements to keep the lights on.
Bob and CHICH you have my ear on reducing consumption. The cool weather was a real bonus and the new insulation and heat pump I had installed last year made a big difference. I try to ensure that no unnecessary equipment is left on and those pig tail flourescent lightbulbs, CFCs?, seem to emit just as much light as a tungsten filament bulb with low heat and wattage draw, and last a long time! The little things add up to big savings over time! It may be time to start looking into an electric automobile.
true times are getting hard the gap between the haves and the have not isgetting larger the middle is disapearing regarding the gp rate increase if you dont use it you dont pay for it look at your habits turn off lights do away with outside light unplug chargers when not using threr are ways to cut your power bill remeber this is the greatest country in the world we can voice our opinion
Great. In the middle of this continuing bad economy they want more money! Shall we stop eating or taking or medicine to pay Gulf Power more money??
I personally would reject anything that is proposed in the break down of the rate increase IF it included a pay raise for their employees. I have not had a raise in over 4 years. I am Civil Service and in Law Enforcement. It was a slap in our face reading where one of our county commissioners gave an aide a pay raise, and the School Board doing the same – not giving teaches pay raises, but giving raises to administrative staff. I am personally tired of getting screwed by our Governor and County Commissioners. Between Heath Insurance and Retirement cost, I have just about had it with this State and County. Cost of living is going up. They say inflation is not going up, but yet it shows 3% increase. Who is on drugs here??? They need to look up the word INFLATION and INCREASE. People say that the way to change things is to vote out the current politicians, but more often than not, it’s like voting for the devil and the witch…you get screwed either way.
Gulf power, property taxes, vehicle registration , house and car insurance are many of the reasons I’m leaving the state of Florida can’t make it here on retirement
It all comes down to supply and demand. When it comes down to the nitty gritty you have a choice. If your power bill is too high check all the wall switches and the thermostat.. Turn off all switches and bingo your power bill goes to a flat rate of about $20.00 per month. Personally I like to stay cool in the summer and warm in the winter.
I am so tired of people complaining about utility companies.
DEFINE.. “AMERICAN DREAM”…it is not, ‘SOMETHING FOR NOTHING”
As a country, we live way beyond our means and the complain when there are increases in. Production and demand run cost up. Government mandating “greener & cleaner production” runs cost up.
I hear people say all the time, if we had another, water, gas or power comp to choose from things would be different. NO it wouldnt people. Wait & see, it will cost more. Been there done that!!!!
To D.D….good job finding and posting that article!
Sounds like Gulf Power company is talking out their buttes! Which is it Gulf Power?
*Gulf Power in Dec. 2010 said the decrease is primarily driven by a lower cost of fuel the utility uses to produce electricity. By strategically monitoring its generation fuel mix to use the most cost-effective generation available, the company was able to lower residential electricity prices for 2011.
*Gulf Power in May 2011 said the increase in base rates, arguing that the cost of supplying electricity to the Panhandle has jumped during the past decade.
I wonder if I could use the excuse given in this article with my boss? I need a pay raise to protect the quality of my service.
This is copied directly from NorthEscambia.com website with date article ran! Boy this didn’t last long did it? I remembered reading this and searched it on the website and had to copy. . .
Lower Electric Bills For EREC, Gulf Power
December 1, 2010
A little good news for Escambia River Electric Cooperative and Gulf Power customers — electric bills are on the way down.
Over the past year, the “purchased power cost adjustment” for EREC customers has decreased $36 on an average bill of 1,000 kilowatt hours. EREC said the lower power cost adjustment is due to lower fuel costs being passed along to end users.
“When we benefit from lower energy costs, we will pass that benefit along to you as a valued member of EREC,” the company said in a news release.
Beginning January 2011, the typical Gulf Power Company residential customer will see a 2.8 percent decrease on their electricity bill as compared to January 2010, according to the company.
Gulf Power said the decrease is primarily driven by a lower cost of fuel the utility uses to produce electricity. By strategically monitoring its generation fuel mix to use the most cost-effective generation available, the company was able to lower residential electricity prices for 2011.
“The bottom line is that fuel prices have come down and we’re passing that savings along,” said Jeff Roger, spokesman for Gulf Power. “It’s a drop that will directly benefit our customers.”
Still, the poorest in this country, look rich to hoardes in others. It is much different now. That’s for sure. I am really learning the difference between needs and wants. Have not had a COLA in 3 years. But taxes increased, as did insurance. Still, I have food, water, shelter and clothes. I thank God, He is faithful.
Gulf Power almost broke us last year with the fuel surcharge that most months was more than our electricity usage! My husband’s pay was cut and while my pay was not cut, my insurance costs and retirement costs have increased so my net pay has actually decreased. Our children are grown and we barely make it just the two of us and I can’t imagine how people with children make it. Both myself and my husband work every day (my husband if work is available) and I don’t understand how we are expected to make it while these companies are reporting huge profits and we’re reporting no profit yet they expect us to be able to pay more. As midievel says, we just keep checking things off our list (not much is left on it) until there is no list and we give up.
It’s really tough now days trying to live the “American Dream” with all that’s happening now! We stopped years ago because of our own personal struggles and hardships that disabilities bring to the table. Haven’t enjoyed the luxury of eating a good steak, buy new clothes, watching cable, high speed internet, vacations, owning an animal or driving a new car in a very long time….it’s really frustrating…but it can be done when you are forced to do what you have to do in order to survive.
Everything just keeps going up and up (gas, food, clothing, personal items, utilities, taxes and implementing new expenses such as mandatory septic tank inspections and pump outs) and whatever else they come up with. However, people are loosing their jobs or taking pay cuts to keep them, not getting cost of living increases (COLA), but somehow we are still expected to find the money in our empty pockets to pay our Counties and our Country’s debts. It’s really hard to have any real hope for our children’s future, which is very, very sad!
bills are going up kids and daddy pay just got cut 6% and will not be working a full week for a long time… so we have to cut a few itmes from the budget…
cable (check)
food (check)
vacation (check)
sell the dog (check)
christmas (check)
power bill (……..)
how much will our backs have to endure (check) ???