The Florida Public Service Commission (PSC) denied Gulf Power Company’s (Gulf) requested $101.6 million revenue increase, instead reducing the company’s request by $37.5 million. The PSC also lowered the company’s requested return on equity from 11.7 to 10.25 percent.
The Commission also denied Gulf’s request for 159 new employees–granting approval of 115–and reduced executive incentive compensation by $3.9 million. Gulf’s annual storm damage accrual request was reduced by half, with the Commission approving the company’s current $3.5 million annual accrual.
PSC Chairman Ronald A. Brisé said, “We approved only the operating revenues needed for Gulf to provide its customers with reliable, safe electric service, which also reduced the potential financial impact on customer bills.”
Commissioners denied Gulf’s proposal that acquisition and evaluation costs for its Escambia County Site be included in base rate charges, since a need for this site has not been determined or brought before the PSC.
Based on today’s approved revenue, new rates for all customer classes will be considered by the Commission on March 12.
Commissioners heard from Gulf customers through correspondence and in meetings held in Pensacola and Panama City in September 2011. Gulf, which filed its rate increase petition with the PSC in July 2011, serves more than 431,000 retail customers in 8 counties in Northwest Florida.