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PSC To Consider Potential Gulf Power Nuclear Plant Rate Increase
July 16, 2012
State regulators could on Tuesday decide a controversy about a potential Gulf Power nuclear power plant site in North Escambia.
The Florida Public Service Commission will consider a Gulf Power proposal to allow it to collect money from customers related to the purchase of 2,700 acres for a potential nuclear power plant near McDavid. The PSC earlier this year rejected a Gulf Power proposal to build site costs into base electric rates, but Gulf Power is trying to convince regulators to reverse that decision.
In June, the commission decided to put off a decision on the proposal until July 17 to allow more time to review some of the key issues.
Attorneys for consumers and business groups are fighting Gulf Power on the issue, with Joe McGlothlin, an attorney with the state Office of Public Counsel, telling the PSC in June that “you’ve heard it before”.
“An analysis of facts demonstrates Gulf Power doesn’t need the North Escambia site,” said McGlothlin, whose office represents consumers in utility issues.
But Gulf Power attorney Jeffrey Stone said last month that the North Escambia site is important to the utility because it could house a nuclear or other type of plant, is in the western part of Gulf’s service area and has good access to transportation.
“It’s the only property Gulf has that is suitable for all forms of future generation,” Stone said.
The proposal would have a small effect on customers’ bills — it would allow Gulf Power to collect slightly more than $2 million from customers in 2012, according to a company filing.
Commissioner Art Graham has expressed concerns about not allowing Gulf Power to collect money for the site. Graham said it is difficult to try to find land for nuclear-power plants, particularly if they are near residential areas, and he doesn’t “want to see this opportunity go by the wayside.”
“Residential intrusion is something you want to avoid at all costs,” Graham said.
But Graham, McGlothlin and PSC staff also pointed to questions about another undeveloped site that Gulf Power has long owned in Caryville. Graham said he is concerned about adding the Escambia County site to the rate base in addition to the Caryville site.
Last month, the PSC did approve a plan by Gulf Power Company to take advantage of low fuel costs and trim customers’ monthly electric bills by an average of nearly $10 a month. The change will be noticeable for customers of Pensacola-based utility as fuel costs make up a major portion of monthly bill. Residential customers who use 1,000 kilowatt hours of electricity will see their bills drop from $126.53 to $116.61.
The News Service of Florida contributed to this report.
Pictured: Some of the property purchased by Gulf Power Company near McDavid that could potentially be used for a nuclear power plant in the coming years. NorthEscambia.com photos, click to enlarge.
Comments
11 Responses to “PSC To Consider Potential Gulf Power Nuclear Plant Rate Increase”
What the heck, how does Gulf Power expect to operate anything as complicated as a Nuclear plant, they cant keep the power on in the north end of the county, the slightest chance of a storm and the power is out somewhere, then it takes them forever to fix it…………
Another rate increase, well I think the one they just got is more than enough, Southern Co. is a very clever operation, they change out meters if your electric bill is too low……..
Horrible idea to build a nuclear plant in the town. Take the plant somewhere else far from here. Along with why should we pay to help them start something that is dangerous for us? They get enough money as it is. They should NOT be approved to build a nuclear plant.
This area is not even servedby gulf power our elec. comes from escambia rural electric. Why dont they build their nuck plant in their own service area? becouse their customers would raise hell. Looks to me like they have bought theirselves a hunting club for the go.od ole boys and they want their customers to pay for it
When there is a need of something that benefits the tax payers of Florida lets us say a bridge that allows commerce to flow through the state thru Escambia County. The bridge is built funded by the tax payers and own by the tax payers. If the bridge is built by a private consortium then it becomes a toll bridge and a toll is charged to the users of the bridge to pay for the bonds that raised the moneys for the construction. If Gulf Power intendeds to build a power plant be it nuclear or not then they should show investors how the plant would make them a profit on their investment. This raises the question why aren’t there any investors willing to invest in this plan…because there is no plan.
I think they should have their power plant, sure. But they should pay for it themselves. They have the cash. Stop the CEO bonuses and raises like any other company that wants to expand and I bet that more than makes up the 2 million a year for the cost of their facilitiy, nuclear or otherwise. You CAN’T just get your customers to pay for something YOU want. Seems like they are thinking like a MONOPOLY business now. A business expands with their OWN savings plan in my book. I haven’t EVER had to go into my own savings until all this recent rising inflation. I won’t back down on signing any petitions or support to ban a pay hike. Whether a new plant helps us or not, this is Gulf Power’s ambition, not ours.
PSC continue to hold strong. Keep the trust of the public that you serve. Maybe the State of Florida should hold the deed to this land purchased by the consumers and then leased it back to Gulf Power in order to offset the purchase price by the way of lower power rates. If Gulf Power does not prove that they intended to build a power plant then the land would become a state recreation area for all to use.
The original reasons given by the PSC for not allowing Gulf Power to pass this cost to the consumer was that Gulf Power did not have a plan in place to even build a power plant let alone a nuclear power plant. Until this plan is in place and approved by the powers to be then all this land would be is private hunting grounds for the CEO and friends paid for by the consumers. Let’s get real here Gulf Power needs to get off the stick and do the due diligence and produce the documentation that proves their indented use of this property. The consumers should not have to pay for something that will not benefit them. What happens if later Gulf power decides to sale this property after the consumers buy it for them will we all see a cut of the pie or is that all Gulf Power profit? Inquiring minds what to know…
I’ll be glad to support an effort to invest in possible power plant site in north Escambia. This effort might well make the area a key player in power generation, hiring of citizens and reducing the enviromental damage done by coal fired generation.
Contact the PSC, contact@psc.state.fl.us let them now you how you feel. The “North End” is tired of being treated like 3rd class citizens.
I feel that the CEO of South Co should have a residence next door to the reactor, like a parsonage. When the chair changes the old CEO would move out and the new CEO and family would move in. This would help show us ignorant folks that there is no danger from nuclear power.
They still have no plans in place and haven’t done anything with the other site. A nuclear plant might be a bad idea in an area that has tornados and hurricanes. If there was an accident it would cut off one of the only escape routes for some people in the north Escambia area. Are they also planning to build another road out of this area??!!