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Gulf Power To Seek Rate Hike
May 17, 2013
Little more than a year after receiving approval to increase base electric rates, Gulf Power Company has given notice that it will may file another rate-hike proposal this summer.
In a letter sent to the Florida Public Service Commission, the Pensacola-based utility pointed, in part, to upgrades of its transmission system and lagging revenues.
“In addition to the increase in the cost of providing electric service …Gulf’s base rate revenues have not grown as expected,” the letter said. “The economic recovery from the severe nationwide economic recession is slower than previously predicted. Significant uncertainty still surrounds the pace of economic recovery in northwest Florida and in the nation as a whole. As a result of the slower than expected economic recovery in our region, sales in each customer segment have failed to meet forecasted growth.”
Gulf said it may file a detailed rate proposal in July, which would start a months-long process that would include a hearing before the Public Service Commission.
The letter, signed by Gulf Power President and CEO Stan Connally, said Gulf Power estimates that an increase in annual revenues of about $75 million to $80 million “is necessary to produce sufficient revenues to allow us to continue to provide the electric service our customers require.”
The PSC in March 2012 approved a $64.1 million rate increase for Gulf Power, the first base-rate hike for the utility in a decade.
by The News Service of Florida
Comments
16 Responses to “Gulf Power To Seek Rate Hike”
They’re lying. Anyone can check their financial statement online and see the profit Gulf Power makes.
I just think since they use their lines for business they should cut the trees off the lines since the lines or not on private property. Instead of wanting me to pay for their service and pay to have their lines clear so a neighborhood can not have blinking lights. They clear the lines all through town.
I wonder if people realize that burning candles for light costs more than electric lights? Or burning firewood costs more than an efficient electric stove? If you want to do that, fine. Candles are romantic, and food cooked over an open fire does have a nice taste, but don’t do it because you think it will save you money. It won’t.
Electric utilities, far from being in a cushy position, are in a pretty bad spot. They have an obligation to serve. If Apple doesn’t have enough revenue to make enough iPhones, they just make fewer of them, and you may not be able to buy one until they come back in stock. But utilities don’t have the option of not serving you. They can’t say, “I’m sorry. We don’t have the money to buy poles and wire to serve your house. We should have enough money saved up for it in 3 or 4 months. Apply then.” That would be ridiculous.
“We can’t afford enough bucket trucks, so we’re really busy right now. We won’t be around to get your power back on until next week. Until then, you’ll just have to do without.”
“We are currently out of electricity. We couldn’t afford to build a new plant. So, we’ll have rolling blackouts to reduce load. You’re day without electricity will be Friday. From now on, on Friday, you will not have electricity. Thank you for patience.” Believe or not, that’s how it is in the Phillipines, where people have an assigned day with no electricity, because there just isn’t enough.
There are certain things they MUST do. They don’t have a choice. People tell them to cut back. They don’t have that option. They’re obligations cost money. If their expenditures are higher than their revenues, they would either raise revenues or go out of business. If they go out of business, someone else will move in to this area, and they would be in the exact same position of having to raise revenues. It’s the nature of the beast.
I don’t want my bill raised any more than anyone else. But we shouldn’t be demonizing people who are just doing their jobs.
The state, feds and GP conspire to offer rebates on “renewable” and energy efficient devices.
Then when those things create less revenue for GP, they get a rate increase to make up for lost revenues.
Best business model in the world……….being a utility.guaranteed profits no matter what.
With the sun and wind we have here why hasn’t someone started a “renewable energy” company? I think people are probably ready for some change here!
Can’t you feel the ripple effect for Escambia River Co-op?
Gulf Power’s website claims it has the lowest rates in the state; however, on another page of its site it shows GP’s rate is higher per kilowatt hour than any other electric company in Florida .
So what gives? More smoke and mirrors, like the North Escambia power plant it plans to build?
And you would think the would cut the tree off the line that makes my lights blink when the wind blows. No instead they want me to cut it its not on my property it’s on the easement next to their pole. I wish I was young again….maybe someone would look at it instead of they person on the phone telling me they will drop the lines while I Clear a way for their lines that Are not on my property.
It must be wonderful to have a monoply so you can do as you please. What gulf power needs is someone putting pressure on them. Guess who ownes the public service commission? Gulf Power may not own them but GP controls them!
Here’s an idea! Let’s furlough the CEO’s and others in executive positions for one day a week for the next year. The savings in salaries alone would probably pay the annual salaries of some of the linemen and office workers.
What’s good for the government employee is good for overpaid CEO’s in the private sector as well. (Sarcasm here).
If rates go much higher I will have to start living like I did when I was a kid. we had to watch TV by candlelite and to cook supper we woul build a fire on top of our eletric stove. Gulf Power does not know the meaning of cutting back and trimming their own budget. they are like the goverment, just raise taxes or rates in this case. does it really take three people to do the job of one?
I thought I read where they were converting to natural gas since it was so cheap. Wait, are we still paying for that nuclear plant north of Molino? Does anyone know where I can get a lead shield to go around this stupid “smart” meter? I read that the EM radiation can cause headaches and worse. I think it’s giving me a headache now.
This is why I started hanging clothes outside on a clothesline and don’t use my dryer. Before long we all may need to learn how to live like they did in the old days using candlelight & fires.
And does Mr. Gulf Power President and CEO Stan Connally believe we the local residents have acquired some magical increase in income?
of COURSE they want to increase rates. We spent money to make our house more efficient and have lower bills so now they need to make up for what I tried to save by charging me MORE!! Why do we even try? The vicious circle tightens the noose………
Great…let’s hit those on a fixed income where it hurts. If their economic growth is slow what do they think people living here have to do to pay this?
Really the last decade doesn’t count so much as our economy was based in fake assets 10 years ago and we are still recovering. Take money away from consumers in raising rates is only going to hurt economic growth as people will have less to spend.
Citizen who have been living in recovery have had to put off or cancel dreams they had our long term plans they wanted to be able to obtain. I think Gulf Power CEO’s and anyone at Gulf Power making over 50K or 100K should be happy with their pay and get over the idea of getting raises. I’m less than impressed with the expense of the Smart Meters that ended jobs for meter readers and probably weren’t cost effective or Made in America.
It’s likely Gulf Power will get what it wants since they spend advertising dollars with local media for no reason. It’s not like there is another electric company to compete with.
I hope solar panels & batteries become more affordable. I’d love to be using renewable energy to offset rate increases.