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Gulf Power $38.5 Million Rate Hike Gets Approval
August 24, 2011
State regulators on Tuesday allowed Gulf Power Company to at least temporarily raise rates by $38.5 million, as the Panhandle utility gets ready to seek a broader hike that would take effect next year.
The so-called “interim” increase will start hitting customer bills in mid-September and will lead to a $4.49 a month jump for residential customers who use 1,000 kilowatt hours of electricity.
The Florida Public Service Commission will re-visit the interim increase as it considers Gulf’s proposal for a permanent base-rate increase of $93.5 million. If regulators decide that any of the interim hike was unjustified, they can order Gulf Power to refund money to customers.
The PSC unanimously approved the increase, pointing to a state law that allows utilities to seek interim hikes if they can show they are not earning as much money as allowed under their current rates. The interim increase will enable Gulf to make a 10.75 percent return on equity, a common measurement of profit.
“We have followed the statute to the ‘T’,” Gulf Power attorney Jeff Stone told the PSC.
But Jon Moyle, an attorney for the Florida Industrial Power Users Group, a business coalition of large energy users, said the commission should not act until holding hearings and considering the permanent rate increase. He also described the 10.75 percent return on equity as “exceedingly high.”
“We respectfully would oppose this effort to increase rates by $38 million today and suggest you can consider the issues later when you have evidence before you, when you have witnesses, when you have testimony,” Moyle told commissioners before their vote.
Gulf Power, which serves 431,000 customers in eight counties, has not received a base-rate increase in nearly a decade. Base rates pay for many day-to-day operations of utilities, but customers also face other charges for expenses such as power-plant fuel.
The company contends that it needs to increase base rates, at least in part, because of the costs of adding power lines and other types of infrastructure.
“We understand there is no good time to increase prices,” Gulf Power spokeswoman Sandy Sims said in a prepared statement after the PSC vote. “Providing reliable electricity requires a continuous investment in poles, lines and power plants.”
The PSC is scheduled to start hearing arguments in December on Gulf Power’s permanent rate request, with any changes expected to take effect in 2012.
Under the interim increase, Gulf Power residential customers who use 1,000 kilowatt hours a month will see their bills go from $122.67 to $127.16. Utilities commonly use 1,000 kilowatt hours as a measuring stick, but many homes use more electricity than that each month.
If the permanent rate hike is approved, those same residential customers would see their monthly bills increase to $134.82, according to Gulf Power.
By Jim Saunders
The News Service Of Florida
Comments
19 Responses to “Gulf Power $38.5 Million Rate Hike Gets Approval”
i dont know where yall are getting that the power always goes out on the north end, i live on the north end and my power stays on, the folks at gp do a great job of doing so and maybe all of you need to cut back on electricity use!
Gulf power and RICK the crook Scott What are we going Florida
My property tax bill is more than my electric, gas, and water bills – combined.
Just this a.m. on FoxNews, Gov. Scott was touting how he is trying to keep the cost of living down for Floridians. He is nothing more than a two-faced political hypocrite.
Spot on Molino Anon….Seems like every time someone spits north of 9mi rd, our power blinks off. Gulf Power needs some serious competition in these parts. They came out months ago and installed new gizmos that send the reading to the company eliminating the meter readers in this area…..more jobs gone, and higher rates.
Just once, I’d like to see them lower their rates…..probably when pigs fly.
The power in Escambia County is way to high, period. Cost vs. Quality its way over priced right now for rural customers.
This is one of the only places I’ve been where the phone and power are monopolized. Customers do not have an option other than getting a cell and switching over to solar/wind power.
I have lived lots of places from midwest and over and I have never had a electric bill as high as Gulf power it’s because there no other companies. My light bill runs 300.00 per month and I had hard time with mortgage ask Gulf power for help for extention and they said sorry but we have to tack on another 100.00 for deposit to your bill for being late so now do they not only have 600.00 in deposits but anytime i am late they tack on another deposit. ugh and now another increase come on its already higher then other areas per kilowats. If I did not have children I would turn off my lights and live with no power or get solar panels so I did not need to much of there service
the stateof florida is very generous to all these power cos. gulf power has a special commitee to find ways to spend all the surplus money on hand now. the fla gov hates us citizena anyway. just look at all the money grubbing laws theyve passed and all the taxes theyve they raised .its good to have someone look after us since we aint got sense enough to spend our own money……and guess what we cANT EVEN VOTE ON THE PUBLIC SER COMMISSION……………..
Oops! My bad, I meant turn UP your thermostat in the summertime. Now I’m gonna get me a Cold glass of lemonade and go sit under a shade tree. God Bless
Maybe what all of you need is a free Gulf Power “Good home energy check”. Turn down your thermostat unplug the the coffee pot , turn off the light when you leave the room. keep your shades down and your blinds pulled, keeps out the heat. Run your dishwasher only with a full load. Cut back on those long HOT showers, monitor your teenagers on this one. You would be surprised of the ways you can save money. I believe Gulf Power has a program to help those seniors that have trouble paying their bills. Those with a little more change in their pocket can check the box on their bill to help those with problems paying. I know times or tough for a lot of folks, you have to cut back and tighten your belts.. once more. I think of electricity as a luxury. I grew up without it for the most part. So, its like any other luxury, if you want it you have to pay for it!
What we have here is a bunch of whiners. Boo hoo, You only pay for what you use. My power bill is still one of the cheapest things going. How much do you spend on automobile gas in a month, how much do you spend on groceries. What you have to do is cut back. Simple. I appreciate my power. Its worth every penny, and its still a good value in my book.
People complain and want clean energy, there is no such thing as clean, cheap energy. Thanks to fuel costs and EPA mandated regulations, all that clean power costs us the customers money. How about the cost of fuel to run the trucks, the cost of copper wire, it all trickles down to the customers. No one is stealing from us, I don’t believe anyone is getting their pockets lined. Some people just look for something to complain about. If we spent as much time doing something useful as we do complaining the world would be a better place. Yesterday you were bashing the fire departments, today its Gulf Power. Nothing good comes cheap. When a storm blows through and our power goes out its a beautiful sight to see those trucks roll up. Thanks Gulf Power for keeping the lites on!
thank you gulf power! just what I needed, another rate hike. Power bill is already at 300.00 and me and my fiance work 10 hours out of the day. Wouldn’t want GP to not make their 10.75% profit you know. Also 10 dollar customer fee? Wish I had an option
Amen Louie! I think of the elderly on fixed incomes, that are sitting in sweltering heat, trying to figure out where they can cut back. We were brought to this crisis, through deliberate desighn. I take comfort in knowing the lord has a plan for these spawn. I wish them luck dragging their gold, to their eternal reward, but then they do not believe of such a place. Good luck!
Well, someone has to pay for buying the unsold houses and the moving costs for the GP employees, when they transfer all over the south when they take different positions with the company. Can’t promote folks if they stay local you know…but have to send them somewhere else, then they can come back, so we have to pay to move them again…and buy their house if it does not sell in this economy.
They are NOT the best stewards of OUR money…I do know that. In a lot of ways, GP is run like a government agency…with all sorts of programs/games/etc for the employees to play…in some ways a social program.
That being said, there are a lot of good folks who do a good job who work for GP…nothing against them.
I guess part of the dividend hike, will go to the rate hike.
I wish my power bill was $138.82! All I can say is, solar power looks more and more appealing to have installed next year. Sick of Gulf Power, their rates, the power blinking off every time there’s a light shower, 4+ hours of power outages because of their equipment, and lack of customer service if I call to report something wrong with my power. I hope they use the funds to beef up the infrastructure in rural areas, rather than line their pockets.
Gee, just what we need in the middle of all the economic woes! What were they all thinking? The best way to ensure a real good recession is to keep raising prices on everything and make sure there are no jobs to pay for the raises!! Then add all the government mess…a perfect storm!
Surprise Surprise!!! Havent used my dryer in two months and AC on 80 and still getting 160 power bills. what if we all did a powere strike???? haha.
Is anyone susprised that the bought and paid for PSC gave GP another rate increase? GP is a monoply and they know it!