The Florida Public Service Commission (PSC) today ordered Gulf Power Company (Gulf) 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.
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 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 would have paid in corporate income taxes will instead be used to reduce rates.
“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.
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 customers $103.2 million. Today’s PSC decision provides additional tax law savings for Gulf customers.
Gulf serves nearly half a million customers in 71 towns and communities throughout Northwest Florida.
For additional information, visit floridapsc.com.