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Gulf Power Hurricane Repairs Could Top $350 Million; Will Customers Pay?
November 8, 2018
Gulf Power expects a final tab of hundreds of millions of dollars from Hurricane Michael, but it remains to be seen if the costs will be passed on to customers.
In a Securities and Exchange Commission filing Wednesday by the utility’s parent company, Gulf estimated that costs of repairing transmission and distribution lines and “uninsured facilities” will total $350 million to $400 million.
The filing by The Southern Company, which is Gulf’s parent, did not provide a detailed breakdown of the costs. But it said that as of September 30, Gulf Power had $48 million in a property-damage reserve. Under a 2017 rate-settlement agreement, Gulf is able to ask the Florida Public Service Commission for approval to recoup storm-related costs from customers and to replenish the reserve to $40 million. But the filing indicated a decision has not been made.
“The ultimate outcome of this matter cannot be determined at this time,” the filing said. The Category 4 Hurricane Michael made landfall October 10 in Mexico Beach and caused massive damage as it tore through parts of Northwest Florida and went into Georgia.
by The News Service of Florida
Comments
7 Responses to “Gulf Power Hurricane Repairs Could Top $350 Million; Will Customers Pay?”
Elmer, Gulf Power wasnt helping out over there, sir, THAT IS THEIR SERVICE AREA…DUHHHHH
Sell some of that excess property?
I think Gulf power should take part of it from their investors.. I also think that it would suck for all the customers to have to replace all this, especially when quite a few of them are the hurricane victims.. You would think that most of the companies would have something set aside that earns funds to help take care of when this happens.. as it isn’t unexpected really.. guess all the decreases we all just saw are going to go the other way now.. which sucks, as we know they will end up going even higher..
Randy M is correct. All companies charge or should charge a service fee that goes into an account for emergencies and handling unexpected costs. But as of right now the costs of Hurricane Michael has exceeded the $48 million in reserve at Gulf Power.
Retired – No let’s not take the money from the investors. I live on that money thank you very much. Although I am a customer and it should be passed on to everyone that receives their electricity from Gulf Power if this is the route they take.
Gulf Power has always been generous in lending a helping hand to others. Let’s keep up those values.
Hopefully the FPSC will agree to replenish a major portion of the reserve lost.
I could not of said it better Randy M
Thank you Gulf Power for helping out down there
let the investors take a reduction in profit for awhile. That is part of the risk.
Gulf Power should cover the cost not the customer.
We all pay the service fees that contribute to the reserve.
It’s part of doing business for a company. All companies have
Unexpected cost.