NextEra, Gulf Power Report Earnings As Hurricane Michael Recovery Surcharge Looms

April 24, 2019

Tuesday, NextEra Energy, Inc. reported Gulf Power financial results for the first quarter of the year, as Gulf Power awaits approval for $350 million in customer restoration fees for Hurricane Michael recovery.

Gulf Power reported first-quarter 2019 net income of $37 million, or $0.08 per share.

Gulf Power base retail operation and maintenance costs were down nearly 5% year-over-year. Gulf Power’s capital expenditures were approximately $100 million in the first quarter of 2019, and full-year capital investments are expected to be approximately $700 million. During the first quarter of 2019, Gulf Power’s average number of customers was roughly flat to the comparable prior-year quarter as a result of continued impacts from Hurricane Michael in 2018.

During the quarter, Gulf Power filed a cost recovery petition for approximately $350 million in Hurricane Michael restoration costs. Subject to a review and prudence determination of final storm costs by the PSC, Gulf Power is proposing a surcharge equivalent to $8.00 per month on a 1,000-kilowatt-hour residential bill until the storm costs are fully recovered, which is expected to occur after approximately 60 months. Gulf Power believes that the proposed surcharge strikes an appropriate balance between ensuring timely cost recovery and mitigating customer bill impacts.

NextEra, which complete its purchase of Gulf Power on January 1, reported 2019 first-quarter net income attributable to NextEra Energy of $680 million, or $1.41 per share, compared to $4.43 billion, or $9.32 per share, for the first quarter of 2018.

Comments

6 Responses to “NextEra, Gulf Power Report Earnings As Hurricane Michael Recovery Surcharge Looms”

  1. Kate on April 26th, 2019 7:03 am

    How about Gulf Power just has to suck it up like everybody else? Everybody suffers losses when a disaster happens. So the investers share in the after effects also…..

  2. MR REALITY on April 25th, 2019 6:39 am

    So we made a profit and have a lot of NEW equipment that the company owns NOW they want us to pay for it YET no other companies can use OUR lines we are paying for…I just dont get it….We own the lines, etc then and WE DEMAND SOME COMPITITION IN HERE TO LOWER THESE RATES!!!!

  3. northend resident on April 24th, 2019 12:31 pm

    Hurricane Michael didn’t hit this area, so why are Escambia County Florida tax payers expected to pay for the work another county received? I could better understand if we were required to pay for emergency services received here in this county.

    Why isn’t that expense being passed onto those counties and the citizens who received the services? Someone please clue me in!!!

  4. Bernie D Silcox on April 24th, 2019 12:26 pm

    It never fails to keep me in wonder,As follows Years ago Our county decided to charge Gulf Power for their useing the right of way,(THat we let them use for road paving water lines etc.So gulf Power just passed cost over to us.Everyone wins The County get their monry from G. P. Gulf power bills us, so it looks like no new tax. But it is …& a scam by Govt. & Big Business.The same old Greed level the devil taught them,And we pay for Poles thar are on our land or not on our land.They just get all to pay.Sounds like Rome of Old.This too shall fall,Greed will be for those that chose this way

  5. nod on April 24th, 2019 11:32 am

    gulf power is like the kids of today. no planning for things they know will happen just go day to day.

  6. Kate on April 24th, 2019 8:06 am

    I don’t get it, if they posted earnings to the board of directors on shares at 8 cents, where is all the loss?

Written by William Reynolds · Filed Under News