CRESTVIEW — Gulf Power Company wants to increase its base rate charge, but what would that mean for customers?
The base rate is the amount the utility company charges customers regardless of how much power is used. Currently, the rate is about $18.60 per month for residential customers. Gulf Power filed paperwork with the Florida Public Service Commission on Aug. 12, 2016, to increase that amount to an average of $47.40 per month.
Gulf Power has also filed to reduce the kilowatt-per-hour charge from $0.04 to roughly $0.03 for customers.
“This would do away with spikes customers see on their bills during summer and winter months when energy use is greater,” Gulf Power Media Relations Supervisor Rick DeLaHaya said. “The change would allow more predictability in calculating your bill.”
The average utility bill for consumers would increase by about $15, despite a proposed decrease in use rate.
The restructuring in base and use fees would create more “predictability” on average bills but affect power-saving initiatives by consumers. Several regional clean energy companies and organizations have expressed concerns about the proposal for this reason.
For example, if a resident didn’t use power for the entire month they would still be charged nearly $50, simply because they have service. This also affects users of solar energy, who use low amounts of energy to power homes.
“This is dis-incentivizing to investing in your own personal property in order to lower your bills through solar,” Director of Conservatives for Energy Freedom Tory Perfetti said at a recent public hearing regarding the rate adjustments.
Gulf Power will not receive any increase in profit due to the rate restructuring, DeLaHaya said. Additional money gained from the rate increase will go toward “significant and critical capital expenditures for infrastructure,” according to the power company’s original request to the public service commission.
These infrastructure costs would relate to improving the grid through new power lines and poles and better technology to manage the utility, DeLaHaya said.
“Gulf presently estimates that an increase in annual revenues of approximately $115 to $125 million is necessary” to provide the service customers require, the proposal filing stated.
The city of Crestview has not looked into the matter and therefore, neither opposes nor endorses the plan, according to Mayor David Cadle.
The commission will address the increase in April and vote on May 9. If approved, rates will increase in July.
THE ISSUE: Gulf Power is seeking an increase to its base rate charge.
LOCAL IMPACT: Consumers’ average utility bill would increase by about $15, despite the proposed decrease in usage rate.
This article originally appeared on Crestview News Bulletin: What would a Gulf Power increase mean for residents?