Escambia To Consider Electric, Natural Gas Tax Increase; Utility Against Plan

August 24, 2012

The Escambia County Commission will hold a public hearing next month to discuss a proposal that could mean an increase in electric and natural gas bills for residents of the unincorporated areas of the county. It’s a plan that Gulf Power is speaking out against.

The plan would costs consumers an extra $2.5 million to $3 million per year that would be used for economic development efforts.

In the 1990’s, Escambia County granted power franchises to Gulf Power and Escambia River Electric Cooperative, and a natural gas franchise to the City of Pensacola. As part of the franchise agreements, the companies are required to collect and pay the county five percent of gross revenue collected on the sale of electricity and natural gas up to a maximum amount for each category.  The county’s proposal would increase those caps by 50 percent.

“I don’t support the franchise fee increase,” Commissioner Wilson Robertson said during the Thursday night meeting of the Escambia County Commission. He was the lone vote against setting the franchise tax increase public hearing, while commissioners Kevin White and Grover Robertson voted yes. Commissioners Gene Valentino and Marie Young were absent.

For residential customers and small offices, the maximum amount for the franchise fee on their bills would increase from $10 to $15 per month. Effectively, the increase would not kick in unless a customer’s gross electric bill exceeded $200 each month.

Gulf Power Company said Thursday night that an increase in franchise fees will actually make Escambia County less competitive for economic development.

“At a critical time when we are trying to work with Airbus suppliers to come to this area.  Our competition — Baldwin County, Alabama — has no franchise tax.  Escambia County, Alabama, has no franchise tax.  And Escambia County Florida, is one of only 19 counties (out of 67) in Florida that charge a franchise fee. This is the wrong tax at the wrong time,” Gulf Power spokesman Jeff Rogers said in an email to NorthEscambia.com.

Rogers pointed out that funds are already available for economic development. He said the Greater Pensacola Chamber recently raised $8 million, the Legislature allocated $30 million for the region, and Escambia County is poised to receive up to $100 million from the federal RESTORE Act.

“Additional funding through the franchise tax at this time is unnecessary and hurts businesses,” Rogers said.

The county’s proposal would increase the maximum franchise fee paid by medium size offices and retailers for $75 to $112.50 per month, and  large offices and retailers from $300 to  $440. The largest electric franchise fee increase would be on large industrial users from $3,000 to $4,500 per month. And for gas, commercial users would see the monthly cap increase from $750 to $1,125, while industrial uses would see a potential monthly gas bill increase from $3,000 to $4,500.

“The tax increase impacts our largest employers the most.  At a time when the area is experiencing high unemployment, it does not seem right to unnecessarily penalize our largest employers,” Rogers said.

The Escambia County Commission will hold a public hearing on increasing utility franchisee fees paid by consumers in the county at 5:31 p.m. on September 17.

Pictured: Commissioner Wilson Robertson at Thursday night’s meeting of the Escambia County Commission. Courtesy photo for Northescambia.com click to enlarge.

Comments

12 Responses to “Escambia To Consider Electric, Natural Gas Tax Increase; Utility Against Plan”

  1. Dishearted on August 27th, 2012 9:15 am

    We the people that live in this county needs to come together and let leaders know that enough is enough.then REPEAL the 1 cent sales TAX that the people passed and the leaders waste away instead of using is for what it was supposed to be used for.its time for the fat cat to get back to reality…

  2. Bob on August 25th, 2012 7:42 am

    Teaching moment for the commissioners. Folks, contact your commissioner and tell him or her to stop wasting their time and ours. The additional money is not required at this considering the funds about to come the county’s way. Fiscal responsibility is important. Grover, vote no this time please.

  3. Jim on August 24th, 2012 10:08 pm

    Economic Development, what a JOKE! All these people do is throw good money down a dark hole. Where are the good jobs for this area. If Young people want to make a good living, they have got to leave this area. I still don’t see any improvements in the north end of the county. Kevin White hasn’t shown me anything he’s done for those people. Same old story. We’ll see if Mr. Barry follows in the same foot steps.

  4. old man on August 24th, 2012 9:08 pm

    want more money for economic development why they havent done anything with w hat they have plus people are hurting ifind this insulting to spring this on the people right after elections buy of course what can you expect out of our elected officals

  5. leslie on August 24th, 2012 8:20 pm

    I voted for Kevin White. What a big mistake he was.

  6. Aaron on August 24th, 2012 7:32 pm

    Isn’t it funny that the utility which has steadily been getting more of your money is against this!

  7. Mike on August 24th, 2012 5:50 pm

    Isn’t it funny that our county commissioners kept this grand idea quiet until right after the elections. Maybe they suspected a pro tax stand on this or any other issue would have meant sure defeat. Read My Lips, No NEW TAXES

  8. No Excuses on August 24th, 2012 1:19 pm

    No new taxes!!! Find a more profitable way to spend the tax dollars and funds that you already have. Government spending usually leads to waste anyway. Don’t tax necessities!!

  9. Ray on August 24th, 2012 10:14 am

    Call your commissioner an tell him no way they don’t do anything for us out here any way. but I think it will fall on deaf ears with Kiven White he don’t care and never has.

  10. Oversight on August 24th, 2012 9:57 am

    Government needing more money is like an addict on crack. Once government is hooked on your money, which by the way it already is, it’ll want more and more to satisfy this ever growing addiction.

  11. EMD on August 24th, 2012 9:22 am

    STOP taxing necessities, and spend more wisely if possible. Thank you Raise the tax on luxuries, if you must tax. There are some citizens that need the utilities in today’s world. And, some cannot afford them now. Tax things like dune buggies, tattoos and video games.

  12. Jane on August 24th, 2012 5:59 am

    Attend this meeting and complain! This will hurt the small businesses and retired people a lot! We are tired of having more taxes by our government which does nothing for the unincorporated areas of Escambia County!!!!

Written by William Reynolds · Filed Under News