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Gulf Power Files For Rate Increase
July 9, 2011
Citing rising costs and the need to strengthen Northwest Florida’s power system, Gulf Power Company has asked the Florida Public Service Commission to increase rates as early as September.
The request is the company’s first base rate request in 10 years and would increase the total bill for a residential customer buying 1,000 kilowatt-hours by $12.15 per month — from $122.67 to $134.82. Gulf Power has asked the PSC to implement a portion of the increase ($4.49) in September, pending a final decision on the request in early 2012.
“Even though we have had increases to cover rising fuel and required environmental costs, we have not had an increase to cover the day-to-day cost of doing business for almost a decade,” Gulf Power spokesperson Sandy Sims said. “Since then costs have increased significantly as we’ve built new power lines and substations. At the same time we’ve taken steps to strengthen and upgrade our electrical system that has been shaken by major hurricanes.”
Sims said Gulf Power has invested significantly in new infrastructure since the last such request in 2001, building more than 850 miles of new power lines and nine new substations and serving an additional 50,000 customers.
“The costs of maintaining our local customer service offices, our line crew centers, our fleet of bucket trucks and other day-to-day operations have also all increased since 2001,” Sims said. “Material and equipment costs have gone up significantly.”
Sims said that since the last base rate increase request several items commonly used in the business have seen significant cost increases. For example, the cost of copper wire has increased more than 250 percent, transformers 90 percent and the cost of diesel fuel for bucket trucks has jumped more than 300 percent.
“We wouldn’t be asking for a price adjustment unless it was absolutely necessary,” said Sims. “Maintaining reliable service is at the core of our business. Over the past 10 years we have had to upgrade our grid with stronger poles, new computerized monitoring and control technology, smart meters and new switching equipment to meet the growth in demand and to avoid outages. Like any other business, at some point our prices have to be adjusted as the cost of doing business increases. ”
Comments
19 Responses to “Gulf Power Files For Rate Increase”
REGARDING:
” In regards to any energy or power being used the other 26-27 days out of the month when no one is home, there is NONE. We turn off our main breaker to the house and have nothing, including outside lights, fridge/freezer running. So for us to still recieve an approx $50 bill from Gulf Power, ”
So no night lights up on power poles outside the house? I have two.
I guess it’s always possible you’re just getting shafted, but if you are, then I am too. Unpleasant thought.
So did you ever find the total number of kilowatt-hours (KWH) at each place, currently and previously, like in when you were only living around here?
David still wondering
@David.. there are substantial differences in the cost of power between FL and LA. I looked over the bills after reading your comment, out of curiosity. In LA power costs per KWH is 0.014740, according to the FL bill (which is much harder to read)because there are Energy and Fuel charges that are 0.05829-Energy and 0.05131-Fuel. In regards to any energy or power being used the other 26-27 days out of the month when no one is home, there is NONE. We turn off our main breaker to the house and have nothing, including outside lights, fridge/freezer running. So for us to still recieve an approx $50 bill from Gulf Power, I feel they are already getting more than their monies worth. They are a monopoly, there is no other choice if you dont like the service you receive, you have a choice in phone service, cable providers, internet, etc. However, if you live in the Pensacola area your choice is GULF POWER, or NO POWER. In LA, it is the same way, we have one choice for a power company and thats it, in my opinion, we need to have more affordable alternative choices for power. Although I will always be thankful that I am not paying 2 bills running over $200/month. I will choose my LA power bill anyday of the month,as my average cost per day here is approx $2.50 (per my average use on my LA power bill). Hoping for better alternatives in the future!
Does Gulf Power have some type of bill averaging Plan. Here in Illinois, we pay a flat rate a month, eventhough our actual bill may be higher or lower than what we pay. For time when it is not too hot or too cold, and people have windows open the electric bill would be low. We pay for gas and electric on one bil and pay around $275 per month. At the end of each year with either carry over the savings or pay the amount due….so far we have never had to pay out.
Might be something to look into espically those on a fixed income. There would never be a superise at the mail box, as you would know what your bill was going to be.
REGARDING:
“Our power bill in LA has never been over $97 (and that was this past month of June). While our summertime power bill there always runs $220+ .. So I’m confused as to why the rates are so much higher there and we are generally using the same amount of power here. ”
Are you sure you’re using the same amount of power or are you just assuming it must be the same since the houses are about the same size? Gulf Power has one of the lowest prices per kilowatt-hour, definitely not 2.26 times as great as Louisiana.
I would imagine your new home is better sealed and insulated and is using less power to cool than your old one was.
Further, if it used to run $220 in 30 days and you use it 4 days per month, that would still be $29.33 as a flat ratio (not that much below the $50 you say you are paying). If you have any outside night lights, they will run even if everything in the house is off. If you have a refrigerator and/or freezer in the house, you probably still have it running while you aren’t there. And, of course, there’s a base rate of some amount which you pay even if you use no electricity at all–just to have it available and ready to go at a second‘s notice.
David guessing at causes
wishing for free energy
appreciative of those who provide
Converting to solar/wind power is sounding better and better. Sure you’re looking at paying about 6-7 grand for up to a 2,000sq ft house to be powered this way, but because of Gulf Powers expensive service, and now trying to increase it even further… A solar power system would pay itself off in 2-3 years.
My last months bill was $430.00? any suggestions
I thought President Obama was going to be paying the bills for people!
I’m confused.
Are we actually going to have to pay for that?
I wouldnt mind the rise in my bill if they can show where they have been losing money while doing these repairs. They said they have 50,000 new customers so that tells me they are making more money than they were. Buisness owners usually put some of their profit away to pay for repairs and future growth. Maybe G.P. should try doing that first.
ok first of all I am disabled and I didn’t get my cost of living raise (10.00) each year, and not getting one next year, thanks to Obama. I have a hard time paying them now. They came last year to clear some weeds, trees, and brush, so that when they put the cement poles up it would all be cleared.. They severly damaged our property with their equipment, huge holes in our grass that would fit a small child in. so when we called them on it they said it would be repaired, hahaha yes they repaired alright. they brought in sand and dirt to fill in all the holes. What a mess. I was so mad I couldn’t stand it. Maybe I should file a suit against them and I won’t have a problem paying them. Now all of the work they did is all grown back.
I think maybe we need to act against this raising costs, with maybe a petition. Hey we all need to do something, we don’t have a choice of power companies to chose from and they have us right where they want us….
Can I take off on my bill for having to trim tree limbs off power lines? And NO the trees are NOT in my yard I just worry about saftey unlike them.
I would gladly pay an extra 10% per month if Gulf Power could somehow figure how to prevent my power from surging and flickering off/on every time there is a thunderstorm within a 10 mile radius of my home.
As a memeber of the military for many years I have had the opportunity to live all over the United States as well as overseas and have never experienced having my services interupted so frequently. Sometimes it even happens when no storms are near.
This may not seem like a big increase, but for our elderly on a fixed income, it can be a bad thing. I see everything going up as inflation, and a weak dollar hit home. Do not forget to check on the elderly, and differently abled.
Gulf Power says it has 50,000 more customers and this is nothing more than greed. I guess the company just can’t be satisfied with the millions of dollars in profit it currently makes.
its so hard to believe that Gulf Power needs an increase in charges.. We have recently moved to Louisiana, and have a home here that is 50 sq ft smaller than our home in Pcola. Our power bill in LA has never been over $97 (and that was this past month of June). While our summertime power bill there always runs $220+ .. So I’m confused as to why the rates are so much higher there and we are generally using the same amount of power here. We still own our home in Pcola, and are only there 3-4 days out of the month and that power bill still runs at least $50, and all power to the house is turned off when we are not in town. All I can say is that I believe there needs to be an alternative to raising rates, when no ones pay is going up, and in hard times we are all more aware of “turning the lights off when we leave the room theory”
While no one likes to pay more for power, some time it is needed from a business stand point. No one wants to go back to the ”good old day’s” of bad weather and sitting in the dark. When I see a line crew working in a storm, up in the air in a bucket trying to get power back on all I can do is say a little prayer for them to please be careful. Every thing has gone up and it’s just part of life.
Can I file for a wage increase to make up for it ?
Go ahead.
So what shall I give up this time…eating or keeping out of the heat?
As WND reported, then-Sen. Barack Obama said in the Democratic primaries that the government should intentionally drive energy bills up through “price signals” in order to force Americans into more environmentally friendly choices.
In a Nov. 9, 2007, interview on Iowa Public Television’s “Iowa Press,” Obama said, “I think it is important for us to send some price signals to change behavior. You know, if electricity goes up, people start becoming more mindful of their electricity bill.”
Can I file for a wage increase to make up for it ?