Gulf Power Rate Increase Gets Final Approval

March 12, 2012

Monday morning, the Florida Public Service Commission gave final approval to a rate increase for Gulf Power Company.

On Monday, the Commission set new rates to reflect the increase. Beginning in mid-April, the price for a residential customer buying 1000 kilowatt-hours of electricity will increase to $126.53. The new price is $3.86 more than the price was before the utility asked for the increase last year. Customers are currently paying $127.16 per month for the same usage, since Gulf Power’s approved interim increase on September 22, 2011.

Commissioners reduced potential investor returns and also refused to allow the company to recoup money for land it bought in North Escambia for a possible future nuclear-power plant.

“Through the Commission’s careful, comprehensive rate review and the recent decrease in fuel charges, Commissioners were able to mitigate the potential financial impact on Gulf customers,” PSC Chairman Ronald A. Brisé said. “With today’s decision, Gulf can continue providing its great customer service, as we learned from customers at hearings last summer.”

“Base rates cover everyday expenses of providing electric service — bucket trucks, diesel fuel, wire, poles, transformers, customer service offices, and much more,” said Sandy Sims, Manager of Public Affairs for Gulf Power. “These expenses have increased over the last 10 years, some by more than 250 percent. We absorbed these increases as long as possible, but we’ve reached a point that an increase is necessary to cover these rising costs.”

While this is the first base rate increase in a decade, other factors have increased Gulf Power’s prices, primarily the cost of meeting new environmental regulations and the cost of fuel the utility uses to make electricity. For instance, Gulf Power recently installed a new state-of-the-art scrubber system at its largest generating plant. While this new system benefits the environment, it also carried a price tag of more than $650 million that is reflected in the company’s rates.

In addition, fuel costs have risen sharply in the last few years.

“As part of the energy charge on the electricity bill we recover the costs of fuel from our customers without any markup,” Sims said. “So when fuel prices increase, the price of electricity usually increases. We strive to maintain a fuel mix that provides reliable, stable prices for our customers. In fact, we just recently passed along two decreases in fuel costs to our customers — one in January and one this month.”

The PSC also approved a $4 million step increase to include Gulf’s Turbine Upgrade Projects for Crist Units 6 and 7 in rate base rather than through the Environmental Cost Recovery Charge on the bill. Effective in January 2013, the base rate step increase will have a $.48 impact on the base rate portion of a customer’s 1,000 kWh bill.

Comments

10 Responses to “Gulf Power Rate Increase Gets Final Approval”

  1. David Huie Green on March 16th, 2012 9:43 am

    if we use less, we still pay less than we would if we used more

    David for economical thinking

  2. Albert on March 15th, 2012 9:04 pm

    Strange that GP had tne surplus cash to purchase land all the while trying to get all of us to use less energy. Now we are using less and they are charging more imagine that! Enjoy the mild weather while you can summer is on it’s way……

  3. Janice on March 14th, 2012 2:49 pm

    Let’s see…NO JOBS, The existing jobs pay peanuts. Higher utilities, Higher gas….Good thing my daddy gave me some good ole mountain living skills, I am gonna need em! SERIOUSLY, Mr. “Big Wigs” How in the HELL are we gonna keep paying with no freaking jobs?! We are all gonna be living in a tent, bathing in the creek, and eating leaves and bugs! SURVIVOR MAN, FLORIDA STYLE!!!

  4. Jane on March 13th, 2012 6:43 am

    Gas has gone up, the electric bills are going up, and consumer spending is beginning to go down again. Double dip recession coming??? Any thoughts on this?

  5. North Escambia Resident on March 12th, 2012 9:49 pm

    Escambia River Electric $137.93 per 1000 Kilowatts and Gulf Power $126.53 per thousand. Escambia River Electric appx. $11.40 per month higher. We definitely know how it feels! At least we get donated prizes at annual meeting each year. HA!

  6. sam on March 12th, 2012 8:07 pm

    bout 43 yrs ago i spent a year in vietnam. did not see a light bulb or electricity for months at a time. no running water, toilets, AC. i swore then if i ever got home i’d never sleep on the ground or complain about utility bills. i haven’t forgotten.

  7. Vicky on March 12th, 2012 5:35 pm

    I am going to build solar panels cause not all states charge a fuel bill on there electric bills Gulf power is overcharging and they can get by with it cause there no other electric company. They want make sure people do not eat.

  8. charlie w. on March 12th, 2012 2:31 pm

    Poor gulf power get a increase and they will won,t more soon. Bet on it! And another increase will be approved by the PSC that gulf power owns. Ain,t gulf power great? lol

  9. M on March 12th, 2012 1:28 pm

    Whatchagonnado?

  10. YELLARHAMMER on March 12th, 2012 1:04 pm

    Remember when the push was on to conserve energy with all these energy saving’s to your home. Now just as we are getting better milage with the cars of today the same thing is happening, the profits are adjusted with rate and fuel heights to keep profits up. You can’t win for losing.

Written by William Reynolds · Filed Under News