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. [Read more…] about Florida PSC Reduces Gulf Power Company’s Customer Bills
Gulf Power Company
SACE Statement on Southern Company’s Proposal to Sell Gulf Power to NextEra Energy
On Monday, May 21 Southern Company announced it has entered into agreements to sell Gulf Power Company, Florida City Gas and the entities holding Southern Power’s interests in Plant Oleander and Plant Stanton to NextEra Energy for an aggregate purchase price of approximately $6.475 billion. NextEra is the parent company of Florida’s largest investor-owned utility Florida Power & Light (FPL).
The Southern Alliance for Clean Energy issued this statement in response:
While Southern Alliance for Clean Energy is still reviewing this deal, it raises concerns that any one monopoly utility would control such a significant percentage of Florida’s energy market. Such consolidation of control may limit competition at a time when we need more and not less.
Lastly, the Florida Legislature has never authorized the Florida Public Service Commission to review the sale of a utility as to whether it is in the best interest of consumers, so there is no protection of the public’s interests. Because there is a long history of FPL’s influence with policymakers resulting in policy outcomes not in the best interest of consumers and the environment, the impact of this proposal should be closely examined.
About Southern Alliance for Clean Energy
Founded in 1985, the Southern Alliance for Clean Energy is a nonprofit organization that promotes responsible energy choices that work to address the impacts of global climate change and ensure clean, safe, and healthy communities throughout the Southeast. Learn more at cleanenergy.org.
PSC Reduces Gulf Power Customer Bills
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.
Florida PSC Approves Gulf Power’s Renewable Energy Purchase
The Florida Public Service Commission (PSC) today approved Gulf Power Company’s (Gulf) renewable energy contract with Bay County. Under the six-year contract, Gulf will purchase all the electricity produced by the Bay County Resource Recovery Facility, a municipal solid waste plant.
“Gulf’s renewable energy purchase promotes Florida’s fuel diversity, further reducing our dependency on natural gas,” said PSC Chairman Julie Brown. “This renewable energy option also reduces landfill waste, saves customers money, and serves the public interest.”
Beginning in July 2017, the contract provides for Gulf to purchase the facility’s 13.65 megawatts of renewable generation for its customers at a fixed price that is expected to save approximately $250,000. The energy-only contract provides security for customers since Gulf pays only for the energy produced; if the plant fails to provide energy, no payment is due.
As required by rule, the PSC considered Gulf’s need for power, and the contract’s cost-effectiveness, payment provisions, and performance guarantees in making today’s decision. This is the third renewable energy contract between Gulf and Bay County, continuing contracts approved in 2008 and 2014. The Bay County Resource Recovery Facility is located in Panama City.
For additional information, visit floridapsc.com.
Florida PSC Approves Final Rates for Gulf Power Company
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.
For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.
Florida PSC Approves Rate Case Settlement for Gulf Power Company
Assured that Gulf Power Company (Gulf or Company) customers will have stable, diverse, and reliable service, the Florida Public Service Commission (PSC) today approved a settlement agreement on the utility’s rate petition. The settlement was signed by Gulf; the Office of Public Counsel, who represents all ratepayers; the Florida Industrial Power Users Group; and Southern Alliance for Clean Energy. No other party to the case objected.
In the settlement, Gulf agreed to a one-time $32.5 million write-down of its ownership costs for Plant Scherer, reducing the expense to be recovered from ratepayers. The plant is jointly owned by Gulf and its sister company, Georgia Power; both utilities are Southern Company subsidiaries. Gulf also agreed to continue a moratorium on financial hedging for natural gas purchases until January 2021.
Gulf had originally requested additional revenues of $106 million and a return on equity of 11 percent. The settlement provides Gulf with recovery of an additional $62 million in revenues and maintains its return on equity at the current 10.25 percent. New customer rates will take effect on July 1, 2017.
A five-year pilot program for electric vehicle charging facilities is allowed in the settlement. Program costs and revenues will be included in Gulf’s quarterly surveillance reports to the PSC, but will not impact customers’ bills.
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.
For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.
PSC Continues Hearing for Gulf Power Company; Holds Commission Conference on Tuesday
On Tuesday, April 4, 2017, the Florida Public Service Commission (PSC) will continue its hearing on Gulf Power Company’s (Gulf) rate request to consider a proposed Settlement Agreement. Submitted on March 20, 2017, before the start of the PSC’s scheduled technical hearing, the proposed Agreement is signed by Gulf, the Office of Public Counsel, and the Florida Industrial Power Users Group (FIPUG).
Following the hearing, the PSC will hold its monthly Commission Conference. Items scheduled for consideration can be found here. Public comment may be taken on any item noticed for public participation.
The hearing is scheduled for the following time and location:
Tuesday, April 4, 2017
9:00 a.m.
Betty Easley Conference Center
Joseph P. Cresse Hearing Room (Room 148)
4075 Esplanade Way
Tallahassee, Florida
The PSC Commission Conference will begin after the hearing concludes.
The hearing and Commission Conference will be broadcast on the Florida Channel (check your local listing) and is available online at htpp://www.floridapsc.com/ (look for the “Watch Live Broadcast” icon on the left side of the webpage).
For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.
Hearing for Gulf Power Rate Request Begins Monday
The Florida Public Service Commission (PSC) will conduct a technical hearing on Gulf Power Company’s (Gulf) request for a rate increase beginning Monday, March 20, 2017. The hearing allows Gulf and intervenors in the case to present sworn testimony and exhibits in support of their positions.
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.
The hearing is set for the following time and location:
Monday, March 20, 2017
1:00 p.m.
Betty Easley Conference Center
Joseph P. Cresse Hearing Room (Room 148)
4075 Esplanade Way
Tallahassee, Florida
In addition, March 21-24 are reserved to continue the hearing, if needed. The starting time of the next day’s session will be announced at the conclusion of each day.
For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.
