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Gulf Power Rate Settlement Approved
April 5, 2017
A settlement that will lead to rate increases for customers of Gulf Power was approved by state utility regulators on Tuesday.
The Public Service Commission unanimously supported the settlement agreement, which was initially announced March 20 but continued to be negotiated and was put forward Tuesday without opposition from customer groups.
The proposed settlement would lead to a base-rate increase of $62 million — with a $54.3 million net impact to customers — through the end of 2019.
Due to the settlement, about $7 is expected to be added to the monthly bills of typical residential customers who use 1,000 kilowatt hours of electricity a month.
Starting July 1, the monthly bills for such customers are expected to go from $144 to $151.
The initial request from the utility sought to boost the typical monthly bill to $158 as Gulf Power —a subsidiary of Atlanta-based The Southern Company — first sought to raise overall base rates by $106.8 million.
Jeff Stone, Gulf Power general counsel, called the settlement “a reasonable compromise of the positions held by all parties.”
The utility previously said it would use the increased money to help pay for infrastructure improvements, including work on transmission lines and substations.
The settlement was not signed by the Sierra Club, the Florida League of Women Voters, the Federal Executive Agencies and Walmart. But representatives for each said they do not necessarily oppose the agreement.
Robert Scheffel Wright, an attorney representing the Florida Retail Federation and Walmart, said the Arkansas-based retailer thinks that a potential “return on equity” remains too high. But he added that “on balance we believe it’s a reasonable settlement.”
In the agreement, Gulf Power will have a targeted “return on equity,” a measure of profitability, of 10.25 percent, down from the original proposal of 11 percent. Gulf Power also agreed to take a one-time $32.5 million write down on costs related to a Georgia power plant, known as Plant Scherer.
Gulf Power in the past has sold electricity from the plant on the wholesale market but now uses power from the plant for its retail customers.
The Pensacola-based Gulf Power is one of four major investor-owned utilities in Florida. It serves about 450,000 customers in eight Northwest Florida counties.
by Jim Turner, The News Service of Florida
Comments
13 Responses to “Gulf Power Rate Settlement Approved”
I imagine that all of these folks complaining about the rate hike are the same ones that complain when severe weather or acts of God take out their power. They expect those guys to get out and fix it right away (and they do) when they wouldn’t let their dog out in it. I would also imagine that most of theservice people complaining couldn’t last a full shift on that job.
Find something to get happy about and appreciate the luxuries afforded to you by people like my husband.
- From the wife of a lineman who is so sick of ungrateful people!
I guess the commission forgot to look at the fuel surcharge that has been on our bills since gas was $4.00a gallon for that few months. They have been charging us since then and gas has been around $2.00 for a couple of years. When does that expire?
Go solar or appreciate that it costs bucks to keep infrastructure up. I don’t like that we have neglected to fix our America. Thank you Gulf Power for all that you provide and I will gladly give for a reasonable reason like that. Thank you also Employees who leave our town to save regions everywhere with your skill. Well counted on systems like our power company and mail system keep our country a place that everyone Else is trying to get to. Recognize decent when you see it.
Thanks PSC………….GREAT job……..
appericate for ALL the help in GP
a rate increase………….
Go solar and screw them. They will become antiquated within a few decades as other forms of sustainable, marketable energy becomes available. That’s how you break up this little monopoly.
What would the consequences have been if the rate increase were refused?
And the investor profit share is???
The cost over run at the Kemper plant is exactly why they wanted the rate hike. However, people on fixed incomes will bear the hardship. When pennies count- they will have to do without AC/heat several days a month to offset the price difference. Heaven forbid Gulf Power actually take a short term loss. A loss that would be quickly regained after the Kemper plant came on line.
I complain to different agency’s quite often over rate hikes,my homeowners insurance,my car rate(no accidents 40 years)my sanitation,water and power bill over many years,but if you call them you’ll get some smug phone clerk when asked why the rate hike? they (you can feel them smiling on the phone) they’ll tell you in sing song ” because we can! so I’m learning to let it go…you can’t win,and anyway,what’s it going to matter to you in 50 years…..
You have to go solar to battle this monopoly!
$7 dollars a month does not sound like a lot until you multiply that times 12 equals $84 dollars . Multiply that by 5 yrs. equals $420 or until they get their next increase. It would seem with all the new housing going on they would be generating more income . I’m not saying Gulf Power doesn’t do a good job, they do.
This is to pay for the Kemper Plant over-run cost plain and simple.
what good would it do to go and speak? they get what they want anyway ,, think the elderly may as well get ready to scrape up more when they just sliding by now,