The Florida Public Service Commission on Monday approved a $64.1 million base-rate increase for Gulf Power Co. The increase was less than the company sought — but more than attorneys for consumers and business groups said the Pensacola-based utility should receive.
Gulf originally requested a $93.5 million hike, but that number increased to $101.6 million because of accounting-related issues stemming from improvements to a power plant.
The PSC on March 12 will determine how the increase will affect customers’ bills, with the changes expected to take effect April 11.
“We approved only the operating revenues needed for Gulf to provide its customers with reliable, safe electric service, which also reduced the potential financial impact on customer bills,” PSC Chairman Ronald Brise said in a prepared statement.
As part of its decision, the commission reduced the potential investor returns that Gulf had sought. It set a 10.25 percent return on equity — a closely watched measure of profitability — while Gulf requested an 11.7 percent return.
Also, the PSC did not allow Gulf to pass along costs related to a potential nuclear-power plant site in Escambia County and trimmed a company request to pay for new employees.
Company spokeswoman Sandy Sims said in an e-mail that Gulf was pleased the PSC had approved most of its proposals. She also said the company has not had a base-rate increase in a decade.
“This increase was very necessary because it has been 10 years since we last were able to increase our base prices,” Sims said. “Since then, we’ve seen significant increases in the price of materials we use to make and deliver electricity.”
