Gulf Power Wants PSC To Reconsider Rate Increase For North Escambia Plant

April 19, 2012

Gulf Power Company is heading back to the Florida Public Service Commission in an attempt to raise rates to pay the costs associated with the purchase of thousands of acres near McDavid.

The utility had requested a $101.6 million rate hike, but the PSC slashed $37.5 million from the request when it was approved last month.  The Public Service Commission did not allow Gulf Power to pass along costs related to a potential nuclear-power plant site in North Escambia because the utility has not taken an initial step — known as getting a determination of need — for such a project.

Wednesday, Gulf Power asked the PSC to allow $2 million in costs associated with the North Escambia land purchases. That would equate to about 20 cents per month for the average customer using 1,000 kilowatt hours per month. The 20 cents would be in addition to the increases that went into effect earlier this month.

The $2 million, just a fraction of the costs of the land acquisitions,  would pay interest on finance agreements and fund environmental assessments on the North Escambia property.

Gulf Power has not said what type of power plant it wants to construct in North Escambia, but PSC filings indicate  that it could be natural gas, coal or nuclear.  However, nuclear was repeatedly cited in the latest PSC filings.

“This small price is extraordinarily reasonable when compared to the potential benefits of nuclear power if it is pursued, or the lost opportunity if the nuclear option is foreclosed by the action taken by this commission in this case,” documents state.

At last report, Gulf Power had purchased 2,700 acres for about $13 million in the McDavid area.

Pictured top: One of many houses that now sit abandoned near McDavid where Gulf Power has purchased thousands of acres for a possible nuclear power plant. One of many Gulf Power “Posted” signs that line the roads in the area of the potential plant. NorthEscambia.com photos, click to enlarge.

Comments

9 Responses to “Gulf Power Wants PSC To Reconsider Rate Increase For North Escambia Plant”

  1. Gus on April 20th, 2012 8:50 pm

    Why should the tax payers pay for thier land deal?

  2. joe on April 20th, 2012 1:10 am

    why should consumers pay for their expense to do business? many business owners have expenses they must pay just to saty in business. we can charge the customers for the expenses but it only hurts business because there are other companies that can charge less. this is free enterprise! the power company already has they market in this area, it is not like we can choose what power company we want to use so they will be able to pass the expense off onto us!!!

  3. hope on April 19th, 2012 8:42 pm

    i hope they get the money so this plant can bebuild. Many construction jobs and high paying nuk jobs. i know i have family that works in one. Think of this area future.

  4. Bob on April 19th, 2012 9:02 am

    Sitting here this morning trying to figure how I am going to justify a 300,000 dollar piece of equipment for my business.. It is right here in front of me,I am going to bill my customers 435.00 dollars each and bingo my problem is solved.

  5. Kathy on April 19th, 2012 7:16 am

    Solar sounds all the better all the time, you get to sell electricity back to them hopefully at the same price they charge us!!

  6. Jane on April 19th, 2012 6:41 am

    Send emails to the PSC and your legislative representatives!

  7. Jane on April 19th, 2012 6:39 am

    So we do all sorts of things to save electricity and they just raise the rates to make us pay for something they haven’t built yet. Some of us may not even live here by the time this is built!

  8. M on April 19th, 2012 5:24 am

    Daja vu?

  9. SW on April 19th, 2012 4:29 am

    Hope they get it. I’m ready to sell and I want as much as I can get.

Written by William Reynolds · Filed Under News