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Businesses, Consumer Groups Fight Gulf Power Rate Case For North Escambia Plant
May 3, 2012
Lawyers for business groups and consumers are urging the state Public Service Commission to reject Gulf Power Company’s attempt to reopen a recently decided base-rate case. The utility wants to be able to collect about $2 million from customers for costs related to buying land in North Escambia for a potential nuclear power plant.
In February, the PSC rejected the idea, but Gulf Power filed a request for reconsideration April 18.
Last week, the state Office of Public Counsel, which represents consumers, and lawyers for two business groups and federal agencies fired back in a document, saying the Pensacola-based utility’s request is a “thinly disguised, legally impermissible effort to have the commission reweigh the evidence of the case.”
But in its request, Gulf Power said the PSC had made a mistake in rejecting the costs and raised the possibility that it will sell the land if the decision stands. ”
The value of the North Escambia site to Gulf and its customers stems from its location in the western portion of Gulf’s service area and its status as the sole site in Northwest Florida suitable for nuclear generation,” the request said.
Gulf has not decided to build a nuclear plant on the site near McDavid but says it wants to keep open the option.
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
11 Responses to “Businesses, Consumer Groups Fight Gulf Power Rate Case For North Escambia Plant”
We have natural gas here…clean energy. Let us use that first. I think it is a safer and cleaner option. Let GP set up some plans before we start raising electric rates to pay for something we know nothing about!
Let them sell the land they don’t need for a nuclear power plant we don’t want. Why should consumers have to dig deeper into their pockets to keep Gulf Power’s stockholders happy?
Another thing to think about. Remember the disaster in Japan? We do have hurricanes here. What would children and grandchildren to if there is an accident? There is nothing made or manufactured that mother nature can not destroy. Just a thought!
Well no money for them until we know what they intend to do. NEVER pay for a service in advance. They wish to build it , take out a loan.Face it companies lie, and do not fulfill their part of the of the deal. They break ground and start building, then we will talk increases. But not one dime till then.
Said it before , It should be a dual energy plant. Half Natural gas, Half Nuke. Can shut 1 side down to do maintenece while other side is operational. Things never break do they? They need to make thier intentions known . Stop all the secrets & guessing , need to publically move foreward.
Right own Jane this is a monopoly they do what they won’t to .One writer said either pay non or pay later well we are going to pay now and we will surely pay later also GP tells us what they are going to do. They build or might not build depends on how much money they stand to make in profit don’t be fooled they don’t care about the people that live their its the MONEY.
For Terry and Imeanreally…..
Name any other business that gets paid for it’s product before it is delivered or consumed.
Utility monopolies enjoy guaranteed profits thanks to the goobermant.
Gotta spend money to make money, unless your a utilities monopoly.
Well said Terri….the folks in North Escambia should realize how this will BENEFIT them in the long run. Yes, we (I say we because I live here too), will have to pay for some of this upfront, but in the end we will benefit tremendously…think of the property taxes we will receive and the benefits from them…think of the jobs this will bring…think of OUR CHILDREN’S FUTURE!! This will be a great place for them to STAY and raise their OWN families!
In the future,maybe not ours,but our children and grandchildren’s,when they cannot afford electricity this will be a different story and people will have different opinions.No one wants to spend money on frivilous things like electricity.but everyone wants the conveince of flipping a switch and having it.They want heat,air,TV,gas for their cars;’fresh food at the stores.Take a minute and stop and think just how much electricity enhances your life.The money for future energy has to come from somewhere.It is pay now or pay later.After hiking in Spain I really saw how energy greedy we are in the USA.After spending nine months living in a tent on the Appalachian Trail I came to realize how fortunate i am to have electricity. Now living in Colorado off the grid,I have had to readjust my elegant meals of electric power.We want fine wine with a beer price tag!
If GP sells the land, will it be for the same amount they paid for it?
If not, will the customers of GP share in their windfall?
Here is the bottom line, GP wins, we lose as always.
I do not care if they want to build an elephant farm there….the consumer should not have to pay for something they haven’t built or even have plans in place for! If I go to a bank for a loan they will ask for building plans and want to know how the building will be used before they will grant the loan. Why should Gulf Power be any different?