PSC Approves Lower Gulf Power Fuel Cost Rate

February 15, 2012

The Florida Public Service Commission on Tuesday approved a proposal that will lead to customers of Gulf Power Company receiving a break on their monthly electric bills.

The Pensacola-based utility will pass along savings stemming from lower-than-expected costs of natural gas. Effective March 1, a residential customer who uses 1,000 kilowatt hours of electricity a month — a common measuring stick — would see a $3.34, or 2.6 percent, reduction. The electricity bill for a residential customer buying 1,000 kilowatt-hours decreases to $122.46, or less than the $124.10 cost for the same amount of electricity in 2009.

Costs of natural gas and other power-plant fuels are a major component of customers’ electric bills. The PSC approved projected 2012 fuel costs in November, but Gulf Power sought a revision last month.

“We have worked very hard to manage our fuel mix to provide affordable, reliable electric service to our customers,” said Jeff Rogers, Gulf Power Corporate Communication supervisor. “We wanted to pass these savings to customers now instead of waiting until the next scheduled filing at the end of the year.”

“The PSC’s authority to adjust the fuel charge protects customers from higher energy bills and allows consumers to stretch their dollars as Florida’s economy continues to improve,” commission Chairman Ronald Brise said in a prepared statement.

Gulf’s customer bills could change again this year, however, because the utility has proposed raising base electric rates. The PSC could make a decision on that request February 27.

The News Service Florida contributed to this report.

Comments

4 Responses to “PSC Approves Lower Gulf Power Fuel Cost Rate”

  1. David Huie Green on February 15th, 2012 11:29 am

    Our bill is made up of two parts: the cost of the energy and the cost of providing that energy to the user. If the cost of fuel goes down, that part of the bill goes down. If the cost of operations goes up, that part of the bill goes up.

    If the total cost is too high, those who believe solar panels on their roofs are more economical are free to install them.

    Or to do without. I have a friend who went several years after Hurricane Ivan without electricity at all because the cost of repairs was higher than he was willing to pay.

    David considering options

  2. Brian on February 15th, 2012 11:22 am

    Bless Gulf Power’s Heart. I am so glad they are working so hard to save us a few pennies today because I am sure that they are working a lot harder to charge us a bunch more dollars per month in our near future bills. Isn’t it peculiar how power bills and gasoline bills go down by a small single digit percentage or a cent or two in the case of gas when they go down but jump up by double digit percentages or at least 10 cents per gallon in the case of gas when they go up. Does anybody else find that to be strange besides me? Lord help us when coal and nat gas prices bounce up from their multi-year lows.

  3. hatingulfpower on February 15th, 2012 7:07 am

    Oh, this is bull….we may be getting a decrease, but I bet it won’t be long before we read they will be asking for another incease.

  4. charlie w. on February 15th, 2012 4:46 am

    This $3.34 decrease in power bill is just a sucker punch. The “big” rate increase is coming and then the fuel adjustment will be added again. Ain,t gulf power great? lol

Written by William Reynolds · Filed Under News