Gulf Power plans this fall to seek an increase in base rates for electricity, saying current rates “do not produce sufficient revenues for us to be able to continue adequately serving our customers and maintain the company’s financial integrity,” according to a filing with the Florida Public Service Commission.
The Pensacola-based utility, which serves large parts of Northwest Florida, did not provide detailed figures but indicated it likely will seek an increase of $115 million to $125 million. The filing also indicated a full rate proposal will be filed with the Public Service Commission in October. The regulatory commission later will hold a detailed hearing before deciding whether to approval the proposal, a process that takes months. In a five-page document notifying the commission of its plans, Gulf pointed to factors such as investments in its infrastructure and slow sales growth.
“As evidenced by our strong levels of customer satisfaction, Gulf continues to provide safe, reliable service to our customers,” said the document, filed Friday. “However, the fact remains that growth in base rate revenues has not kept pace with the cost of providing service to our customers. Adequate rate relief through an increase in base rates is necessary now in order for Gulf to have the capability to continue providing our customers with safe and reliable electric service at reasonable prices.”
source: The News Service of Florida