Florida Public Service Commission approves rate decrease for Gulf Power customers

The Florida Public Service Commission (PSC) approved on Monday a plan for Gulf Power to pass along approximately $103 million in tax savings to its customers.

The savings came from the reduced corporate tax rates in the 2017 Tax Cuts and Jobs Act.

“Gulf customers will realize base rate, as well as environmental and fuel cost recovery savings in their monthly bills beginning in April,” PSC Chairman Art Graham said. “Addressing possible tax law changes was part of our approval of Gulf’s 2017 rate agreement, and this plan allows customers to benefit early.”

The average residential Gulf Power customer using 1,112 kilowatt-hours per month will see a $14 decrease their monthly energy bill for 2018. This is the largest decrease in company history, Gulf Power said.

In total, 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. More than $30 million in savings for customers will continue into 2019.

Gulf Power, the Office of Public Counsel, the Florida Industrial Power Users Group, and the Southern Alliance for Clean Energy worked together to reach the settlement.