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A New Year, A Higher Power Bill For Gulf Power Customers
January 2, 2014
A new year means a rate increase for Gulf Power customers to help pay for the largest power grid construction program in the history of the company.
The average residential bill for 1,000 killowatt hours of electricity is expected to jump $4.06 from $127.94 to $132. 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.
Starting last year and continuing 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. The formal request was filed in July, and a settlement with the Public Service Commission was reached in December.
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.
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.
Courtesy photos for NorthEscambia.com, click to enlarge.
Comments
8 Responses to “A New Year, A Higher Power Bill For Gulf Power Customers”
My understanding was that the rate increase was applied to power usage after January 1, 2014. However, my December bill ended in January, so I was charged the new rate for the power I used in December. When I called to complain, the operator I spoke with confirmed the rate was for power after January 1, but then back tracked after she realized I was asking for a credit for the amount overcharged (in my case $10.77). Whats up with that Gulf Power?
And nothing in my area is ever upgraded…
Surely you don’t expect elected officials or big companies to carry the burden of providing freebies to the unproductive segment of our society. Someone has to pay for their free food, housing, utilities, phone service, medical needs, etc. Numerous TV shows prove that the public glamorizes baby mommas and daddies with 10 children that thrive on fhis lifestyle. And in proportion to the increase in the number of freeloaders, the finacial burden will get heavier on those who pay their fair share. .
On a more positive note: Hopefully technology will develop heating/cooling units that provide the same results but use less power. (Like the lightbulbs that burn just as bright but only use a fraction of the electricity required by the old bulbs)
what else is knew,everything goes up but peoples pay check.food stamps going down but everything else going up and they know the people dont have a choice.pay it or loose electricity ,water,garbage.and escambia county wonders why there were so many forclosed houses around here.poor old county workers had some foreclorses to cause they havent had a raise in 6 years and when thet do get one its a 3 percent and no cost of living raise.if the commioners had to live on the low paying people at the county they would be on food stamps. they dont care about nothing but their pay check. what hppen to all that bp money? why arent people questioning about that. until people speak up they will continue to take our money.
“The work is considered the largest ever to be undertaken by the investor-owned utility, said attorney Jeff Stone, representing Gulf Power.”…..and you expect us to believe every dime of these increases will be used only for these improvements, NONE going to the INVESTORS? No one, well almost no one, would deny someone making a profit, BUT ONLY AFTER THESE IMPROVEMENTS HAVE BEEN COMPLETED AND PROVEN RELIABLE.
Gulf Power going up ECAT on our backs with 3 cents a gallon more in Escambia county – I am buying my gas in Santa Rosa from now on and I am fed of with being taxed and increased while the rich get richer and the 1.5% means only that we are still poor…BUT people keep voting in the same IDIOTS that allow it to happen and even make MORE money – think about it
Great. There goes all the raise that SSI folks got for the year. Thanks Gulf Power, now we get to be hot in the summer and cold in the winter.
Here it is a new year and it has already started. Social Sceurity recipants got a 1.5% increase because there is very “little” inflation. Medicare get a raise. Gulf power get a raise. Ecat gets funded by added taxes. Everything will go up because of GP. Someone explaine how the 1.5% seniors got will take care of INFLATION and allow them to injoy their golden years?