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Gulf Power To Seek Rate Increase
August 17, 2016
Gulf Power plans this fall to seek an increase in base rates for electricity, saying current rates “do not produce sufficient revenues for us to be able to continue adequately serving our customers and maintain the company’s financial integrity,” according to a filing with the Florida Public Service Commission.
The Pensacola-based utility, which serves larges parts of Northwest Florida, did not provide detailed figures but indicated it likely will seek an increase of $115 million to $125 million. The filing also indicated a full rate proposal will be filed with the Public Service Commission in October.
The regulatory commission later will hold a detailed hearing before deciding whether to approval the proposal, a process that takes months.
“Securing our customers’ energy future requires a balanced energy mix that includes renewables and 24/7 energy sources like natural gas and low-cost coal that’s cleaner than ever,” said Stan Connally, Gulf Power chairman, president & CEO. “Energy security also includes reliability — since 2010, Gulf Power has improved its reliability by 40 percent and we must continue that trend of improvement.”
Gulf Power last requested an increase in 2013. In 2012, the utility’s customers saw the largest price decrease in Gulf Power’s history, a decrease of nearly $10 per month for the typical customer. Again in January 2016, customers received a decrease that lowered the bill $3.71 per month.
“As we continue to secure future energy needs for our customers, we have to make sure our systems are resilient so that we can continue to deliver safe, clean and reliable energy and continue to meet the energy needs of our customers today, tomorrow and into the future,” Connally added.
In a five-page document notifying the commission of its plans, Gulf Power pointed to factors such as investments in its infrastructure and slow sales growth
“As evidenced by our strong levels of customer satisfaction, Gulf continues to provide safe, reliable service to our customers,” said the document, filed Friday. “However, the fact remains that growth in base rate revenues has not kept pace with the cost of providing service to our customers. Adequate rate relief through an increase in base rates is necessary now in order for Gulf to have the capability to continue providing our customers with safe and reliable electric service at reasonable prices.”
The News Service of Florida contributed to this report.
Comments
20 Responses to “Gulf Power To Seek Rate Increase”
No pay raises for anyone but taxes, fees, food and utilities continue to go up and up, but yet we are told there is no inflation. Where does it end?
I fully agree with Terry Bowen,the CFO is there to make the company money, that’s all, if the stock holders are happy the CFO will be very happy $$$$$$$$ The big problem is our shopping option, there is none.
Still trying to wrap my head around the “We don’t get a bonus…If we don’t perform well, we get nothing or little…” concept.
So, you agree to a salary that never goes up, but can easily go down?
Charge whatever you want Gulf Power, sooner or later we will turn everything off except when we are at home. When you charge, we shave, simple fix.
I don’t get it. NFCU brought in a bunch of new families to our area and there is lots of construction going on. With new customers comes new revenue.
Gulf Power has also, theoretically, been saving payroll with all the new meters.
Is GP still buying up property in the North end of the county? How much did that cost?
So we are looking at increases of property taxes for Fire Fighting support and now GP wants to increase rates.
At some point, these increases become oppressive on our local economy and hurt the opportunity for growth.
I said in Jan. Please do not give us a rate decrease because every time they do a much bigger increase is coming. Always happens that way. Don’t they know how to budget.
Fact of the matter is that as we get more efficient homes built and find ways to save on our power bills, Gulf Power’s bottom dollar falls off. It’s a double edged sword we always live by and a large portion of it is driven by corporate greed. The more we save, the less they make. The less they see as profit, the more they need to increase rates to compensate themselves. Good old free enterprise at work here!
Bill:the rate increase is about the base rate to cover o&m expenses,NOT fuel cost. GP can’t charge a single cent over what their fuel cost is (the fuel cost part has been going down over the past few years and you should have seen it on your bill)
BONUS !!!! l id be happy with a pay increase been with the state for 10 yrs not one pay increase or bonus they give it back then take it back
the price of oil is down to a 3rd of what it was…everything else keeps going up, including power. umm, what’s going on with this? hmm…
@ Terry/Jeanne and others. I fail to see the “quick profit” in Southern stock. Five years ago it was listed at $40. Today it is listed at $50. An average gain of $2 a year is not a “quick Profit”. The dividend has been a 4% yield, so not out of line. Yes I hold stock in Southern and understand that they have to be able to come in after a storm and replace every thing. The need to update and replace power equipment is high. The cost is less if you have the resources and funds on hand than to go on to the open market. For those who wish to go off line there are many other ways to have power— wish you good luck with it.
We don’t get a bonus. Part of our agreed annual salary is based on performance. If we don’t perform well, we get nothing or little and lose out on a chunk of our income. Some years are better than others.
I have a problem with the rate hike at this time. Fuel cost are down presently and I am sure they are enjoying the increase of profit as the people do at this time. If cost rise again then a rate hike may be justified.
It sure seems like they are trying to help cover the cost of them buying AGL Gas Company.
http://www.southerncompany.com/news/2016-07-01-complete-merger.cshtml
The issue, as has been stated, is that the stock holders are not getting the quick profit margins that they want thus the top company officials may not get their bonuses. If the bonuses were done away with and any raise was truly based on company performance and infrastructure condition, the leaders would change their thinking but that cannot occur until stock holders quit looking for the quick profit out of stocks. The stock market, as I was taught in school and college, was for the long run over many years of investment and not the quick, make a large profit, and get out. My power bill is high enough for the service I get. If they continue up then I will have to look at natural gas for my home.
I wonder how much of this increase can be attributed to our government’s “war on coal”?
What they mean is, shareholders want more money. Quarterly dividends are paying out enough.
I agree with Kevin. I don’t have a problem with increase but stop giving out bonuses and keep that money for the company’s financial integrity.
Guess I’ll be going to candles and kerosene lanterns,wow middle class was fun!
I have no problem with a rate hike if Gulf Power will quit giving all of their employees those extremely large bonuses every year.