The Florida Public Service Commission (PSC) today approved Gulf Power Company’s (Gulf) rates from the Commission’s previously approved settlement agreement. Customers will be noticed about their final rates, effective July 1, 2017.
The impact of the settlement agreement on a 1,000 kilowatt-hour monthly residential bill is a $6.20 difference, with the bill increasing from $131.43 to $137.63. The bill impact on commercial and industrial customers will vary depending on usage; however, on average, commercial/industrial bills will increase by about three to six percent.
On April 4, 2017, the PSC approved a settlement agreement on the utility’s rate petition. The agreement was signed by Gulf; the Office of Public Counsel, who represents all ratepayers; the Florida Industrial Power Users Group; and the Southern Alliance for Clean Energy. No other party to the case objected.
Gulf originally requested additional revenues of $106 million and a return on equity of 11 percent. The agreement provides Gulf with recovery of an additional $62 million in revenues and maintains its return on equity at the current 10.25 percent.
Gulf filed its petition for a base rate increase with the PSC on October 12, 2016. The PSC held customer service hearings on January 26, 2017 in Pensacola and on January 27, 2017 in Panama City. Gulf currently provides electric service to more than 450,000 retail customers in eight Florida counties.