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PSC Approves Gulf Power Rate Hike
December 4, 2013
State utility regulators accepted a settlement agreement Tuesday that increases base electric rates for customers of Gulf Power Company for the utility’s largest-ever construction program.
The residential bill in January 2014 for 1,000 kilowatt-hours of electricity is currently slated to be $127.94. That same bill will increase $4.06, an increase of about 3.2 percent. In addition, in January 2015, the price will increase an additional $2.42 per 1,000 kilowatt-hours of electricity. Originally, Gulf Power filed a request that would have increased the cost for a residential customer using 1,000 kilowatt-hours of electricity $10.93 per month by the end of 2015.
“We’re pleased with the PSC’s decision because it will help us continue to deliver long-term, reliable service throughout Northwest Florida,” said Stan Connally, Gulf Power President & CEO. “Our focus will continue to be on maintaining high reliability and high customer satisfaction. They are the heart of our business.”
The Gulf Power increase was part of settlement between the utility and representatives of consumers, business interests including the retailer Wal-Mart Stores East, LP, and federal agencies that represent military bases in the Panhandle. PSC Chairman Ronald Brisé called the agreement “solid give and take.”
The deal is expected to provide 42 months of rate stability for Gulf’s more than 430,000 customers.
The hike allows Gulf Power to increase its revenue through base rates by $35 million in January, with another $20 million boost in 2015.
The money will be used to pay for 15 transmission projects, both new and upgrades, Stone said. The work is considered the largest ever to be undertaken by the investor-owned utility, said attorney Jeff Stone, representing Gulf Power.
Another significant part of this settlement includes new job creation incentives. These incentives will reduce the amount the business pays for electricity by a certain percentage for four years if the business meets certain eligibility requirements.
“Some businesses could apply for incentives for relocating to Northwest Florida or for expanding their existing business in Northwest Florida,” said Connally. “This is another important element in the growing portfolio of economic development programs and activities Gulf Power can use to help draw businesses and jobs to the region.”
Examples of the planned Gulf Power infrastructure investments include:
- Substations are being added and improved to continue to provide reliable service to our customers. In Pensacola, a substation on Devilliers Street has been rebuilt. On Allison Avenue in Panama City, a new substation has been built.
- Seventy miles of 70-year-old transmission line is being rebuilt from Panama City to Holmes County.
- An existing transmission line between Highland City and Holmes Creek substations in the Panama City area is being upgraded to maintain reliability for our customers.
- A new 38-mile line is being added that begins in the Pensacola area and goes to the Florida-Alabama state line. This project is necessary for mandatory federal environmental compliance.
Originally, the utility had sought to increase base rates by $74.4 million, along with the potential for a further $16.4 million in 2015. Those increases would have pushed the typical monthly bill to $138.87 by the end of 2015.
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
11 Responses to “PSC Approves Gulf Power Rate Hike”
Ridiculous….bills are outrageous as it is..I haven’t had a raise for two years, and the cost of living keeps going up.
PSC, another Southern Co. just like G!
When the PSC was considering this rate hike, how many of you sent an email to object? You had the opportunity to make your voices heard…if you did not object, then whose fault is it that the rates went up? It wasn’t a secret that they were considering this. Large companies have a lot of pull: the only way the government will listen is enough people speak up!
I wonder how much power that new line WE ARE PAYING FOR will send down this way for Gulp to resell to either the citizens of this area OR even better to another power company who can resell it at even more of a profit. It’s all a scam. They told us after Ivan that 70 years of work was destroyed in hours…PSC allowed them to add a rider fee onto the bill to pay for those repairs and now 10 years later after Gulp was shot down last year for a rate increase they come limping in talking about they want to update the 70 year old system? Huh? Besides, Gulp BUYS over 50% OF THE POWER THEY SELL US FROM THEIR SISTER COMPANY…Where’s the interest they are collecting on the money they took from us for the McDavid Plant? Who gets that? That interest alone shold pay for upkeep of 70 errrrr 10 year old lines….
The PSC should be ashamed of itself. Everyone should write and call to them to complain. Remember, one day you will have to give an account of yourself. I am so glad I don’t have this on my conscience.
Booooo—–. Just goes to show that our elected officials really don’t care if Gulf Power ripps us off.
Extra money still no upkeep not fair. Home owners deal with code enforcement for overgrowth on their land why are these people not responsible for keeping up their lines?
Absolutely the perfect time to increase everyone’s bill. HO-HO-HO
70-year-old transmission lines? Please forgive us (GP) for not being responsible enough to replace these lines earlier. But think of this, if lines produced perhaps 75 years ago lasted this long, with all the new and improved technology, these new lines will never need to be replaced.
Again rates going up and still getting multiple power surges at my house. Hope this will fix it, but I highly doubt it!!
I’m happy my bill is going up and nothing out this way is being addressed, upgraded, or fixed. I’m telling the truth solar will be a cheaper option in 4-5 years, then GP can buy my excess power reserves… That would be awesome, to bill GP.
Great. Now prices will go up, the 1.5% COLA that seniors got for 2014 has been eaten up and then some by Gulf Power, and the other utilities will raise their prices. Thanks PSC.