The Florida Public Service Commission (PSC) today lowered Gulf Power Company (Gulf) customers’ bills, approving a negotiated plan to apply the 2017 federal tax law to lower the rates consumers pay. As a result of the 2017 Tax Cuts and Jobs Act, corporate tax rates were reduced from 35 percent to 21 percent.
“Gulf customers will realize base rate, as well as environmental and fuel cost recovery savings in their monthly bills beginning in April,” said PSC Chairman Art Graham. “Addressing possible tax law changes was part of our approval of Gulf’s 2017 rate agreement, and this plan allows customers to benefit early.”
Combined, the Commission approved $103.2 million in tax savings for Gulf customers. The plan includes reductions of $18.2 million to Gulf’s base rates, $15.6 million to its 2018 environmental cost recovery rate, and $69.4 million to its 2018 fuel cost recovery rate. Beginning in April, these savings will reduce a 1,000 kWh monthly residential bill by $12.72.
The Office of Public Counsel, which represents customers, the Florida Industrial Power Users Group, and the Southern Alliance for Clean Energy supported Gulf’s tax-savings plan.
Gulf serves 460,000 customers in Florida’s Panhandle.
For additional information, visit floridapsc.com.