For the second time in 2012, Gulf Power Company customers will see a decrease in their electricity bills. The Florida Public Service Commission approved Gulf Power's request to reduce the fuel portion of the customer's bills. The overall price for residential customers buying 1,000 kilowatt-hours will decrease $3.34 per month, largely because of lower natural gas prices. Natural gas is used to produce about 50 percent of the electricity Gulf Power sells.
The decrease means Gulf Power customers will be paying less today than they did in 2009.
The portion of customer bills relating to the costs of fuel, environmental compliance and energy efficiency programs is adjusted each January by the state Public Service Commission. That adjustment resulted in the first decrease of $1.36 that went into effect on Jan. 1, 2012.
With this second price decrease in 2012, the electricity bill for a residential customer buying 1,000 kilowatt-hours decreases to $122.46, or less than the $124.10 cost for the same amount of electricity in 2009.
Gulf Power's fuel costs are "pass through costs" and the customers' costs reflect the company's costs for fuel during the year. This second decrease is occurring now because Gulf Power has been able to further reduce fuel expenses and wants to pass on those savings to customers now, rather than waiting until next January. Gulf Power was able to diversify its fuel mix to leverage reductions in fuel prices. Gulf Power now uses natural gas to provide about 50 percent of the electricity for its customers.
"We have worked very hard to manage our fuel mix to provide affordable, reliable electric service to our customers," said Jeff Rogers, Gulf Power Corporate Communication supervisor. "We wanted to pass these savings to customers now instead of waiting until the next scheduled filing at the end of the year."
Separate from fuel, environmental and energy efficiency costs, Gulf Power also charges base rates — which cover the operational and maintenance costs of making and delivering electricity — bucket trucks, substations, poles, wire, customer service offices, running power plants and building new power lines to serve customers.
Gulf Power has requested an increase in these base prices — the first such request in 10 years. A decision on that request is expected in late February and new base rates will go into effect in mid-April.
The impact of any base-rate increase granted by the PSC will be minimized by these two decreases, which will already be in effect.
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Information provided by Gulf Power Company
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