Gulf Power Seeks To Pass Savings Along To Customers

February 15, 2018

Wednesday, Gulf Power filed a request with the Florida Public Service Commission seeking approval to pass along approximately $103 million in tax savings to its 460,000 customers. If approved by the FPSC, the average Gulf Power customer using 1,112 kilowatt-hours per month can expect to see a $14 drop on their monthly electricity bill for 2018 — the largest decrease in company history. More than $30 million in savings for customers will continue into 2019 and beyond if approved by the FPSC.

The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017, and became effective on Jan. 1, 2018. The decrease in the Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal income tax Gulf Power will have to pay and allows the energy provider to pass that savings along to customers.

“This is very good news for customers,” said Stan Connally, Gulf Power chairman, president and CEO. “Reduced tax costs create an opportunity for Gulf Power customers to benefit from decreases in their energy prices. We are glad this allows us to quickly lower rates for our customers — in fact, this is the seventh time in 10 years we’ve decreased prices. If the Florida Public Service Commission approves this agreement, customers should see the savings beginning in their April bills.”

Gulf Power worked together to reach a settlement with the Office of Public Council, the Florida Industrial Power Users Group and the Southern Alliance for Clean Energy to agree on how to deliver these savings to customers as soon as possible. J.R. Kelly, the Public Counsel, and Jon Moyle, counsel for the Florida Industrial Power Users Group, both applauded Gulf Power for acting quickly to provide customers with rate relief resulting from the federal tax reform legislation. Kelly and Moyle said that it’s important for Gulf Power’s customers and their clients to see real rate relief sooner rather than later, and they believe that this agreement, if approved by the Commission, will achieve that goal.

This decrease comes on the heels of record power consumption by Gulf Power customers due to prolonged extremely cold temperatures in January. The energy provider is working aggressively to make sure customers start receiving the savings as soon as possible.

“This price reduction will provide relief for many who had higher bills due to January’s frigid temps,” said Connally. “With 21 days in the 30s and below, our customers used a lot electricity — in fact on Jan. 18, customers set a record new high energy peak, surpassing the last high by 100 megawatts.”

While Gulf Power will pass along the tax savings to customers across Northwest Florida, the company will continue to invest in the energy grid to maintain the safe, reliable and affordable service customers have come to expect.

“We’re excited to pass along these savings to our customers, while continuing to make smart investments in our energy grid to continue the high reliability our customers have come to expect,” said Connally

Comments

6 Responses to “Gulf Power Seeks To Pass Savings Along To Customers”

  1. Gary Hebert on February 17th, 2018 1:29 pm

    What bout customers on flat rate how is the savings going be passed on to them

  2. Jdub on February 16th, 2018 1:51 pm

    @ Tim McDonald…very well said. I’m with you and tried of the liberal crybabies. People…if you use it you pay for it. GP recommends setting thermostat at 68 & leave it alone in winter. Be thankful that they are passing the tax savings on to customers & putting it back to their system. I have the upmost respect for the lineman who bust their tails in all weather conditions all hours of the day/night to keep the power running.

  3. Confused1 on February 16th, 2018 7:16 am

    Response to Tim McDonald. All I used was 2 space heaters. Bill was still over $300 for a 900 sq/ft house. I don’t see any need to attack someone you know nothing about with the keyboard.

  4. tim mcdonald on February 15th, 2018 8:44 pm

    People are hit with 2 times regular bills because it got cold, and they wanted to keep it 80 degrees in their houses. You want to use the juice, you gotta pay. So tired of you whiney liberals. Our bill was $140.00. we kept thermostat at 72 during day, and 68 at night.

  5. C on February 15th, 2018 11:40 am

    So after the last few year’s requests of price hikes they want to request a drop?

  6. Cunfused1 on February 15th, 2018 9:07 am

    Gulf Power raises rates. People are hit with 2x regular bills because it got cold. So now, GP is saying hey, let’s pretend that we’re lowering the bill. It’s a monopoly and it’s scr*wing it’s customers.

Written by William Reynolds · Filed Under News