Another Gulf Power rate hike approved

Another Gulf Power rate hike approved

by: Deborah Nelson
November 14, 2008

Florida’s Public Service Commission has approved another 9 percent rate hike for Gulf Power.

The hike is necessary to pay for expected fuels cost increases, according to a PSC press release.

The increase comes on top of an 11.3 percent jump earlier this year. The 11.3 percent increase also covered expected fuel cost increases. It took effect last month and will impact customer bills through 2009, according to a company press release.

The additional 9 percent hike will be added onto bills starting in January.

The 11.3 percent increase raised the cost of 1,000 kilowatt hours from $102.22 to $113.76.

Now, the additional 9 percent hike will raise that $113.76 to $124.23.

Gulf Power is not required to absorb fuels costs of doing business. Instead, the company may pass those costs onto customers.

As of September 30, fuel has thus far cost Gulf Power $70.9 million more than the same period last year, according to their Third Quarter Report filed with the SEC.

Gulf Power reported $88,517,000 in net income between January 1 and September 30 of this year. That’s about 15 percent higher than the same time last year, when Gulf Power reported a net income of $76,776,000.

Net income is the amount left over after operating and other expenses, and income taxes, are subtracted from operating revenues.

It does not include the amount subtracted for preferred stock dividends.

Gulf Power has paid $4,652,000 in preferred stock dividends this year – about 5 percent of their total net income.

At the same time last year, Gulf Power had paid out $2,475,000 in preferred stock dividends – about three percent of that year’s net income to date.

Gulf Power’s 2007 10K Annual Report form includes the following executive salaries, per the SEC:

Susan N. Story President and Chief Executive Officer $396,084
Ronnie R. Labrato Vice President and Chief Financial Officer $242,959
P. Bernard Jacob Vice President $223,637
Theodore J. McCullough Vice President $182,973
Bentina C. Terry Vice President $209,572

Undisclosed company officials also receive tax-deferred compensation benefits and various stock benefits, according to the Annual Report.