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Settlement Would Raise Gulf Power Rates
November 22, 2013
Gulf Power Company will be able to increase base electric rates by $35 million in January and an additional $20 million in 2015, under a proposed settlement agreement filed Friday morning with the Florida Public Service Commission
Gulf Power had request a $74.4 million increase, along with another potential $16.4 million in 2015 that is related to transmission projects. It was a two-step price increase to help pay for the largest power grid construction program in the history of the company. Regulators were set begin a detail hearing on the increase proposal on December 9.
“The agreement is in the public interest and should be approved,” the filing Friday says. “It has been agreed to by each and every party and resolves each and every issue in this (case) docket. It results in rates and charges that are fair, just and reasonable over the term of the agreement.”
The Public Service Commission will need to review and decide whether to approve the settlement agreement, with the parties seeking consideration at a December 3 meeting. The agreement could avert a potentially contentious debate about how much the Pensacola-based utility should be allowed to increase customers’ bills. The agreement would remain in effect until June 2017.
The other parties are the state Office of Public Counsel, which represents consumers in utility issues; the Florida Industrial Power Users Group, which represents major electricity users; federal government agencies that are Gulf customers; and retailers Wal-Mart Stores East, LP, and Sam’s East, Inc.
Gulf Power said over the next three years the company is building and replacing power lines and infrastructure — some more than 70 years old — to keep electricity flowing to its 430,000 customers. In addition, new lines and equipment are needed to comply with new mandatory federal environmental regulations.
Part of the new transmission line construction is to help the company comply with new federal environmental regulations that will change the way the company operates its plants and will require plants to be shut down at regular intervals. The new lines and equipment will be used to ensure voltage stability and reliable power flow while the plants are offline.
The News Service of Florida contributed to this report.
Pictured inset: Gulf Power crews making upgrades to a distribution line. Submitted photo for NorthEscambia.com, click to enlarge.
Comments
13 Responses to “Settlement Would Raise Gulf Power Rates”
Ok, it took me exactly 5+ minutes to look up the contact information for Florida PSC, write a comment and send to to them. If you care enough to complain about the rate hike, then send the PSC a comment regarding this! It probably took you longer to write your comments here, so do it where it will actually help, including asking questions you may have.
We need to email and call the PSC if we want this to be taken seriously. All of you who are complaining and all of you who have questions…PLEASE contact the PSC regarding this! The squeaky wheel gets the oil….if they never hear your complaints they will just say OK and allow the rates to go up. What about small businesses having to raise prices to cover the increase?
The Public Service Commission is appointed, not elected.
Mark Walker, Gulp Power makes a profit every year…Just like their sister companies. You see if there’s a revenue problem they just get an increase OR buy a lil more power from each other at inflated rates…
Do you think it’s ironic that Gulp buys over 50 % of their power from Alabama Power…Hummmmm…I wonder why gulp uses 20%+ COAL vs around 20% natural gas to generate electricity when natural gas is at an all time LOW…Hummmm…I wonder who Gulp buys that coal from….I better quit asking too many questions or I might end up like Jake.
Will the Public Service Commission over see the actual upgrades or will they take Gulf Power’s word for the improvements? Funny in the neighborhood I live in when a bad storm comes through we are the first to loose power and it stays off the longest. After Ivan it took about 1 1/2 weeks which really was fast considering the damage but other than that time I have seen no improvements being done at all. Where does all the money go? Has anyone actually seen these improvements being done? That is a nice picture but without over sight it may just be a nice picture, a photo shop moment to push the rate increase. Seems alot like the money wasted on government web sites that don’t work. If a rate increase of that amount is approved verify , verify and verify the work is being done.
Mr. Reality and Slack-Jawed, you are right on target. They’re entitled to make a profit, but as a Utility, they shouldn’t be allowed to continue lying to and misleading both the Public Service Commission. On the other hand, the PSC needs their feet held to the fire as to why they keep approving rate hikes for work that is never done.
The Southern Company/Gulf Power each donat millions to charitible causes, spend millions on bonuses and other incentives for employees, and have amassed profits that show they know how to make money. My concern about a rate hike – ANY rate hike – is how they say they are going to use our money we pay for their product. We are living in an era with degital “smart” meters that emit radio interference and constantly jam our household and small-business wi-fi signals, cause non-FCC compliant interference, and cause our internet providers much expense in equipment replacement and customer service/technical representative labor. I, for one, want to know when Gulf Power will begin investing in issues such as these that directly affect their customers daily, instead of their management continuing to repeat the corporate propaganda that these meters are not a problem. Any funds spent on equipment needs to first be used to upgrade their smart meter shielding and to upgrade their decades-old, deteriorated drops and weathered residential distribution lines before a single penny goes elsewhere.
So much whining! When Ivan cam through, you wanted your power back on right away. When you walk over to the wall and flip the switch, you expect the light to come on. Many of you support the EPA’s restrictions on power generation, all of which add to the costs of producing electricity. Even “green” energy is expensive.
Many of your neighbors and fellow citizens work for Gulf Power. Just as you expect your employer to pay you fairly, they also deserve to be paid fairly. The local businesses who sell products and services to Gulf Power prosper from their purchases of their products and services, and add to the community well being.
I know we all want our services at the lowest cost. But our incomes cannot go up and everyone else’s stay the same.
We all benefit from a well run, prosperous utility in our community. Next time you vote for a member of the public service commission, talk to the candidates about their positions on rate increases. That is the way to influence what happens when Gulf requests a rate increase.
One more thing. Take your weekly beer or Starbucks expenditure and buy stock in Southern Company.. That way you prosper when Gulf Power does well.
Anybody know an electrician who can hook up a good solar system? Sounds like its going to be a wise investment. Gulf power is beginning to look like the Post Office. Every year and increased cost and poorer service.
Ok!!! The increase will be just under $12. Three if those dollars going towards improvements and the rest going to the profits of the executive staff and bonuses for all gulf power employees. Btw what are they going to do with all of the old wiring and materials? My guess is to sell it for scrap and put that money back into their net profits also. Hell gulf power has been increasing their rates over the past 10 years anyway. It will never stop. We as customers really have no choice but to pay it or get disconnected. It’s not like we can change power companies. Big money for gulf power.
They have no shareholders – all their common stock is held by Southern Company. Southern Company has publicly traded stock. Gulf Power and other subsidiary profits go to Southern Company for things like executive bonuses and preferred stock payouts (after Southern Company juggles and distributes profits across the subsidiary board).
Those profits have increased every year since the dawn of time.
Meanwhile, we’re subject to monopoly pricing thanks to local officials’ inability to write franchise agreements in the public interest and State Public Service Commission inability to rule against GUPO gouging.
Let’s see, the cost of living went up by 1.8%…SSI people will get 1.5%, the military hopefully will get 1.8% but Gulf Power wants us to pay out approximately 10% of our SSI (based on the average SSI income) and 9% of the military increase (If they get it). Why should Gulf Power be allowed to increase their costs in the middle of this bad economy? First they ask us to conserve power, then they raise the rates to cover the cost of our saving power!
“Gulf Power said over the next three years the company is building and replacing power lines and infrastructure — some more than 70 years old — to keep electricity flowing to its 430,000 customers. In addition, new lines and equipment are needed to comply with new mandatory federal environmental regulations.”
They used the above excuse on us AFTER IVAN, 10 years ago. They said “70 years of work was destroyed…we need a rate increase to rebuild the network”
Besides, Gulp should be spending the $$$ on producing more power so they don’t have to buy over 50% of the power the then turn around and sell us.
This little $10 a month translates into $500 million for sharholders as Gulp is going to update a 10 year old network…
Shouldn’t expenses like these come from normal everyday maintaining of the “lines”…