Gulf Power, which provides electricity to about 450,000 customers in Northwest Florida, will seek a $106.78 million increase in base rates, according to a filing Wednesday with the state Public Service Commission.
The utility gave notice in August that it planned to request a rate hike, but the new filing provides details and sets the stage for what is expected to be a months-long regulatory process. The Pensacola-based utility is requesting that the new rates take effect July 1.
“As the primary provider of retail electric service to the people of Northwest Florida, Gulf is obligated by statute to provide such service in a reasonable, ‘sufficient, adequate, and efficient’ manner,” the filing said.
“In order to continue to attract the capital required to provide that service to customers, Gulf must also offer a reasonable and fair return to shareholders. Without the revenue increase requested, Gulf cannot meet its obligations to either its customers or investors in the long run. If Gulf is rendered unable to meet its obligations to its customers and investors due to inadequate rates, both stakeholder groups will suffer. Customers will suffer from less reliable service and eventually higher costs of electricity, while the investors will suffer from an inadequate and confiscatory return on investment and will seek other places to invest their money.”
source The News Service of Florida