TALLAHASSEE—The Florida Public Service Commission (PSC) today ordered Gulf Power Company to pass additional savings from the Tax Cuts and Jobs Act of 2017 to its customers. The Commission approved an additional $19.5 million in customer bill reductions.
“We want customers to benefit from the federal tax reductions, and we will continue to find ways the law can help lower electric bills,†said PSC Chairman Art Graham.
As a result, Gulf’s base rates will be reduced by $9.6 million, allowing residential customers to see a monthly bill reduction of $1.11 per 1,000 kWh in January 2019. In addition, Gulf Power proposes to reduce its 2019 fuel cost recovery amount by $9.9 million. This proposal will be considered at the PSC’s annual cost recovery clause hearing in November.
Because of recent changes to the federal tax law, the PSC ensures that customers will directly benefit from the savings through lower bills. What Gulf Power would have paid in corporate income taxes will instead be used to reduce rates.
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.
“We’re so pleased to be able to pass these additional savings along to our customers,†said Stan Connally, Gulf Power chairman, president and CEO. “The bottom line for the average customer is savings of about $32 per year that will begin in January. This will be the eighth time in 10 years we’ve been able to decrease prices.â€
In April, the PSC approved a negotiated plan to apply the 2017 federal tax law that was supported by the Office of Public Counsel, the Florida Industrial Power Users Group, the Florida Retail Federation, and the Southern Alliance for Clean Energy. The plan saved Gulf Power customers $103.2 million.
Today’s PSC decision provides additional tax law savings for Gulf Power customers. Gulf Power serves nearly half a million customers in 71 towns and communities throughout Northwest Florida. For additional information, visit floridapsc.com.
The January 2019 monthly bill for the average Gulf Power residential customer ($141.09) will be $2.49 less than what it was a decade ago ($143.58). It’s the lowest since January 2013, when it was only $130.05.
| Gulf Power residential price changes (Average residential customer monthly bill) | |||||||
| January 2009 | $143.58 | Increase | |||||
| January 2010 | $155.50 | Increase for Scrubber | |||||
| January 2011 | $141.66 | Decrease | |||||
| September 2011 | $146.76 | Increase | |||||
| January 2012 | $138.29 | Decrease | |||||
| March 2012 | $134.59 | Decrease | |||||
| April 2012 | $138.65 | Increase | |||||
| July 2012 | $127.64 | Second largest decrease in company history | |||||
| January 2013 | $130.05 | Increase | |||||
| January 2014 | $149.59 | Increase for largest power grid construction project in company history | |||||
| January 2015 | $156.36 | Increase | |||||
| January 2016 | $150.27 | Decrease | |||||
| January 2017 | $144.01 | Decrease | |||||
| July 2017 | $150.80 | Increase for infrastructure investments | |||||
| January 2018 | $157.90 | Increase mainly for costs of fuel to generate energy | |||||
| April 2018 | $143.79 | Decrease for Corporate Tax Reform (2018 only) | |||||
| Largest decrease in company history | |||||||
| January 2019 | $141.09 | Decrease for additional Tax Reform savings and Clause savings if approved by FPSC | |||||
| (Prices for customers using 1,112 kilowatts of electricity per month.) | |||||||