Gulf Customers Could Face Sally Costs

The Florida Public Service Commission next week could approve a proposal that would lead to Gulf Power Co. customers paying $206 million for costs related to Hurricane Sally. Commission staff members have recommended that the regulatory panel approve adding the storm-restoration costs to Gulf customers’ bills starting in March. The commission will consider the issue March 2. Hurricane Sally caused major damage in mid-September in Pensacola and other western areas of the Panhandle. Under the proposal, a residential customer who uses 1,000 kilowatt hours of electricity a month would see a $3-a-month increase.

Utilities commonly use 1,000 kilowatt hours as a benchmark, though electricity use varies widely. Gulf customers also are paying charges related to Hurricane Michael, which devastated parts of Northwest Florida in 2018. The Michael charges translate to $8 a month for residential customers who use 1,000 kilowatt hours of electricity. Gulf and other Florida utilities have long been allowed by the Public Service Commission to add extra charges to bills to recover costs related to restoring power after storms. The arrangement has been baked into rate settlements in recent years, including in a 2017 Gulf rate settlement.

Article reposted with permission from The News Service of Florida.