Gulf Power Seeks $106 Million Rate Hike

October 13, 2016

Gulf Power, which provides electricity to about 450,000 customers in Northwest Florida, will seek a $106.78 million increase in base rates, according to a filing Wednesday with the state Public Service Commission.

Gulf Power gave notice in August that it planned to request a rate hike, but the new filing provides details and sets the stage for what is expected to be a months-long regulatory process. The Pensacola-based utility is requesting that the new rates take effect July 1.

The average residential customer’s total monthly bill will increase by $10.22 per month or 7 percent — from $148.64 to $158.86, according to the utility. Gulf Power’s residential customers’ prices are less than they were in 2015, and the energy provider expects prices will be even lower in January mainly because of fuel cost reductions brought about by careful planning to take advantage of lower prices in natural gas and coal used to generate electricity.

“As the primary provider of retail electric service to the people of Northwest Florida, Gulf is obligated by statute to provide such service in a reasonable, ’sufficient, adequate, and efficient’ manner,” the filing said. “In order to continue to attract the capital required to provide that service to customers, Gulf must also offer a reasonable and fair return to shareholders. Without the revenue increase requested, Gulf cannot meet its obligations to either its customers or investors in the long run. If Gulf is rendered unable to meet its obligations to its customers and investors due to inadequate rates, both stakeholder groups will suffer. Customers will suffer from less reliable service and eventually higher costs of electricity, while the investors will suffer from an inadequate and confiscatory return on investment and will seek other places to invest their money.”
Stan Connally, Gulf Power Chairman, President & CEO, said the energy provider works hard to control costs while planning for the future and delivering the reliable services their customers expect.

“We have worked hard to manage our costs and have lowered prices over the past two years,” said Connally. “In fact, we plan to do that again in January where the average residential customer will see a decrease of $4.63.”

The last time Gulf Power customers saw an increase was in January 2015. In comparing 2015 prices to the proposed prices, the average residential customer’s monthly bill will increase by only $2.50 per month, or less than 2 percent.

“Securing our customers’ energy future requires a balanced energy mix that includes renewables and 24/7 energy sources like natural gas and low-cost, cleaner-than-ever coal,” said Connally. “Energy security also includes long-term reliability. Since 2010, Gulf Power has improved its reliability by 40 percent and we must continue that trend of improvement. This means our customers are having fewer and shorter power outages — continuous improvement in this area is critical.”

Along with the request, Gulf Power is also seeking approval of new rate options for residential customers.

“Studies show that our customers are happier when their energy bills are more predictable and when they have choices. These options are designed to give customers more predictability in monthly bills reducing the increases associated with extreme weather months. In addition, two new options will offer residential customers more rate plan choices based on the way they use energy.”

The energy provider is also putting into place new options for greater customer convenience, including an improved online experience, additional payment locations at popular stores, and payment kiosks in their customer offices.

by The News Service of Florida and NorthEscambia.com

Comments

11 Responses to “Gulf Power Seeks $106 Million Rate Hike”

  1. Sj on October 16th, 2016 6:43 pm

    Gulf power 7% increase

    Society security 2% increase

  2. Ben on October 15th, 2016 10:12 pm

    here comes your wind farm!

  3. Nod on October 13th, 2016 8:08 pm

    I told you sometime back that every time GP gives you a rate cut to beware because a big increase is coming. It happens every time. CAN YOU SAY THANK YOU GULF POWER?

  4. JustMe on October 13th, 2016 11:22 am

    One reason…More money in the Upper Managements pockets.

  5. Bill M. on October 13th, 2016 7:40 am

    I’m a little confused by this, Gulp Power is going to lower the average power bill in Jan. by $4.63 and then raise again soon after that by $10.22? Why not live it as it is now and see if they can work with the current rates?

  6. Carolyn Bramblett on October 13th, 2016 7:23 am

    The last rate hikes were supposedly done due to the cost of fuel. The cost of fuel was cut nearly in half and there was no cost cut in our electric bills that I noticed.

  7. %Just listening on October 13th, 2016 7:21 am

    Sounds like double talk to me.
    Out of one side of the mouth tell us how much we will save and
    Out the other side tell us that they must increase rates to give good service.
    In an article a day or two ago Gulf was bragging about getting power from out west created by wind and was given very cheap because it was Green energy and today tells us that they must increase our bills. 7% even—I wish I could get a 7% increase in my fixed income check every year. Just saying
    Sheeesh.

  8. Rich on October 13th, 2016 7:10 am

    Roof based solar and other alternatives will now return on their investment a lot quicker with a 7% rate hike on grid supplied power. With the recent price reduction of solar panels, from ~$5/Watt to less than $1/W in the past 5 years, the payback period in less than 5 years in many cases, to be completely independent!

    If, the big IF, you can afford to pay your “power bill” for the next 5 years, at once, in order to purchase and install the alternative equipment. Not many can pull that off.

    Less restrictions on grid tied power production is needed in order to decentralize production and provide economic incentive for micro power producers to provide power to the grid and be provided with fair financial compensation.

    Entrepreneurs would invest in alternative modern forms of power production on the micro <1MWatt level to provide their neighbors with renewable clean power.

    Until then, the monopolies will promise big, deliver small; unless of course, we are referring to their next rate hike or shareholder return.

  9. Bob C. on October 13th, 2016 6:59 am

    WOW — wasn’t there an article yesterday telling us how much Gulf Power was SAVING us consumers in our costs?

  10. Henry Coe on October 13th, 2016 6:49 am

    So is the money to make up for the money spent promoting Amendment 1 ? Vote No on Amendment 1

    Amendment 1 is a con. And you, the voter, are the intended mark.

    Titled, “Rights of Electricity Consumers Regarding Solar Energy,” it looks for all the world like a measure to help spread solar energy across Florida. But in reality, it’s a ploy by the large utility companies to protect their dominance of the energy market.

    The electricity giants such as Florida Power & Light vehemently deny any motives other than to protect the consumer. But why would they have put up $21 million to ensure the amendment’s passage if not to further their own interests?

  11. c.w. on October 13th, 2016 3:44 am

    The monopoly that is “GULF POWER” needs some competition. They have done things their way so long, like having the PSC in their pocket needs to change.

Written by William Reynolds · Filed Under News