Regulators Ready To Grapple With Gulf Power Rate Increase Request
March 20, 2017
State regulators are poised to hear arguments about a request from Gulf Power to raise base electric rates for hundreds of thousands of customers in Northwest Florida, amid opposition from consumer, business and environmental groups.
The Florida Public Service Commission is scheduled Monday to begin a multi-day hearing on Gulf Power’s request for a $106.8 million base-rate increase. Pensacola-based Gulf provides electricity to about 450,000 customers in eight counties and is one of four major investor-owned utilities in the state.
In a document filed last month in advance of the hearing, Gulf said the increase is needed “both to continue to provide reasonable and adequate service to its customers and simultaneously to recover the costs of providing that service including a reasonable and adequate rate of return on invested capital.”
“If Gulf is rendered unable to meet its obligations to the customers and shareholders due to inadequate rates, both stakeholder groups will suffer,” the document said. “The customers will suffer from less reliable service and eventually higher costs of electricity than would otherwise be the case, while the shareholders will suffer from an inadequate and confiscatory return on investment and will seek other places to invest their money.”
But the proposed increase has drawn objections from the state Office of Public Counsel, which represents consumers in utility cases, and other parties ranging from Walmart to the Sierra Club. The Office of Public Counsel and other opponents have argued, in part, that Gulf Power’s base rates should decrease by about $2 million — not increase.
“The ultimate issue to be addressed by the (Public Service Commission) in this proceeding is whether Gulf Power Company needs any additional revenues in order to provide safe, adequate, reliable service, to recover its legitimate costs of providing such service, and to have an opportunity to earn a fair and reasonable return on its legitimate investment in assets used and useful in serving Gulf’s retail customers,” Walmart said in a filing last month. “The evidence offered by intervenor parties … shows that, in total, the answer to this question is that Gulf can indeed fulfill its duty to provide safe, adequate, reliable service with no rate increase at all and probably with a modest overall rate reduction of approximately $2 million per year.”
Public Service Commission hearings in base-rate cases are highly technical and include detailed information about utility finances and operations. Gulf Power’s current base rates stem from a settlement of a 2013 rate case.
A key issue in many rate cases — and likely in the upcoming Gulf hearing — is setting a “return on equity,” a measure of profitability. In its proposal, Gulf Power is seeking an 11 percent return on equity, while the Office of Public Counsel argues the rate should be 8.875 percent.
Another issue in the case involves whether costs related to a Georgia power plant, known as Plant Scherer, should be included in the base rates. Gulf and other utilities have owned stakes in the plant. In the past, Gulf Power sold electricity generated at the plant on the wholesale market but now uses power from the plant for its retail customers.
“Gulf is requesting that the (Public Service) Commission now include in retail rates the portion of (the plant) that is no longer committed under long-term off-system wholesale contracts,” Gulf said in the document filed last month. “This action is necessary to honor the regulatory compact that contemplates that Gulf is entitled to the opportunity to earn a fair return on prudent investments that are used and useful in the public service.”
But the other parties in the case are fighting the proposal to include the costs in base rates. The Office of Public Counsel, for instance, argued that “Gulf is asking the commission to let it put a 30-year-old coal plant in retail rate base after its shareholders had wrung out all of the profit from it in the wholesale market place since it was acquired but never needed for retail rates.”
by Jim Saunders, The News Service of Florida
Century Workshop Tonight To Discuss Water, Gas, Garbage Rates
March 20, 2017
The Century Town Council will hold a public workshop this evening to discuss water, gas and garbage rates.
At recent council meetings, Mayor Henry Hawkins has called for rates to be increased to stop financial losses. Alicia Jernigan, Century’s certified wastewater operator, said the town’s wastewater “is failing”, comprised of aging equipment that has not been properly maintained, is wearing out, or is now functionally obsolete.
The special hearing on “enterprise rates” — water, gas and garbage — will be held at 6 p.m. at the Century Town Hall. A regular council meeting will follow at 7 p.m. Both meetings are open to the public.
Pictured: The Century wastewater treatment plant. NorthEscambia.com photo, click to enlarge.
Sunny, Warm Sunday
March 19, 2017
Here is your official North Escambia area forecast:
Sunday: Sunny, with a high near 75. North wind 5 to 10 mph.
Sunday Night: Mostly clear, with a low around 45. Northwest wind around 5 mph becoming calm in the evening.
Monday: Sunny, with a high near 78. Calm wind becoming southwest around 5 mph in the afternoon.
Monday Night: Patchy fog after 1am. Otherwise, mostly clear, with a low around 53. South wind around 5 mph.
Tuesday: Sunny, with a high near 80. West wind around 5 mph.
Tuesday Night: Patchy fog after 1am. Otherwise, mostly clear, with a low around 57. Southwest wind around 5 mph.
Wednesday: Sunny, with a high near 80. West wind around 5 mph.
Wednesday Night: Partly cloudy, with a low around 57. Southwest wind around 5 mph becoming calm.
Thursday: Mostly sunny, with a high near 77.
Thursday Night: Mostly cloudy, with a low around 57.
Friday: A 20 percent chance of showers and thunderstorms. Partly sunny, with a high near 75.
Friday Night: A 20 percent chance of showers and thunderstorms. Mostly cloudy, with a low around 61.
Saturday: A 40 percent chance of showers and thunderstorms. Mostly cloudy, with a high near 75.
Perfect Spring Weather Weekend
March 18, 2017
Here is your official North Escambia area forecast:
Saturday: Mostly sunny, with a high near 76. Southwest wind 5 to 10 mph.
Saturday Night: Partly cloudy, with a low around 49. West wind around 5 mph.
Sunday: Sunny, with a high near 74. North wind 5 to 10 mph.
Sunday Night: Mostly clear, with a low around 46. North wind around 5 mph becoming calm.
Monday: Sunny, with a high near 79. Calm wind becoming southwest around 5 mph in the afternoon.
Monday Night: Mostly clear, with a low around 54. Southwest wind around 5 mph.
Tuesday: Sunny, with a high near 81. West wind around 5 mph.
Tuesday Night: Mostly clear, with a low around 57. Southwest wind around 5 mph.
Wednesday: Mostly sunny, with a high near 81.
Wednesday Night: Partly cloudy, with a low around 56.
Thursday: Mostly sunny, with a high near 77.
Thursday Night: Partly cloudy, with a low around 57.
Friday: A 20 percent chance of showers and thunderstorms. Partly sunny, with a high near 77.
Warmer For The Weekend
March 17, 2017
Here is your official North Escambia area forecast:
Tonight: Mostly clear, with a low around 48. South wind 5 to 10 mph.
Saturday: Mostly sunny, with a high near 76. Southwest wind 5 to 10 mph.
Saturday Night: Partly cloudy, with a low around 49. West wind around 5 mph.
Sunday: Sunny, with a high near 74. North wind 5 to 10 mph.
Sunday Night: Mostly clear, with a low around 46. North wind around 5 mph becoming calm.
Monday: Sunny, with a high near 79. Calm wind becoming southwest around 5 mph in the afternoon.
Monday Night: Mostly clear, with a low around 54. South wind around 5 mph.
Tuesday: Sunny, with a high near 81. West wind around 5 mph.
Tuesday Night: Mostly clear, with a low around 57. Southwest wind around 5 mph.
Wednesday: Mostly sunny, with a high near 81.
Wednesday Night: Partly cloudy, with a low around 56.
Thursday: Mostly sunny, with a high near 77.
Thursday Night: Partly cloudy, with a low around 57.
Friday: A 20 percent chance of showers and thunderstorms. Partly sunny, with a high near 76.
Strike Out Cancer Softball Games Today
March 17, 2017
Tate High School softball is hosting the 8th annual Strike Out Cancer games against West Florida today to raise breast cancer awareness.
The junior varsity plays at 5:00 and Varsity plays at 7:00. Admission is free; donations will be accepted at the gate.
Prizes will also be raffled, including a Green Egg and Yeti items. All proceeds go to The American Cancer Society, Pensacola Chapter.
Last year’s Strike Out Cancer games raised an estimated $12,000 for the American Cancer Society.
Sunny, About 60 Today
March 16, 2017
Here is your official North Escambia area forecast:
Thursday: Sunny, with a high near 60. Northeast wind around 5 mph becoming calm.
Thursday Night: Mostly clear, with a low around 40. Calm wind.
Friday: Sunny, with a high near 70. Calm wind becoming south around 5 mph in the morning.
Friday Night: Mostly clear, with a low around 51. South wind around 5 mph.
Saturday: Mostly sunny, with a high near 75. Southwest wind around 5 mph.
Saturday Night: Mostly clear, with a low around 50. Northwest wind around 5 mph.
Sunday: Sunny, with a high near 72. North wind around 5 mph.
Sunday Night: Clear, with a low around 47. North wind around 5 mph becoming calm.
Monday: Sunny, with a high near 74.
Monday Night: Mostly clear, with a low around 53.
Tuesday: Sunny, with a high near 79.
Tuesday Night: Mostly clear, with a low around 56.
Wednesday: Mostly sunny, with a high near 78.
Freeze Warning For Tonight
March 15, 2017
Here is your official North Escambia area forecast:
THERE IS A FREEZE WARNING IN EFFECT FOR TONIGHT.
Tonight: Patchy frost after 1am. Otherwise, mostly clear, with a low around 30. North wind around 5 mph becoming calm in the evening.
Thursday: Patchy frost before 8am. Otherwise, sunny, with a high near 60. Calm wind.
Thursday Night: Mostly clear, with a low around 40. Calm wind.
Friday: Sunny, with a high near 71. Calm wind becoming south around 5 mph in the morning.
Friday Night: Mostly clear, with a low around 51. South wind around 5 mph.
Saturday: Mostly sunny, with a high near 75. Southwest wind around 5 mph.
Saturday Night: Mostly clear, with a low around 50. Northwest wind around 5 mph.
Sunday: Sunny, with a high near 72. North wind around 5 mph.
Sunday Night: Clear, with a low around 47. North wind around 5 mph becoming calm.
Monday: Sunny, with a high near 74.
Monday Night: Mostly clear, with a low around 54.
Tuesday: Sunny, with a high near 79.
Tuesday Night: Mostly clear, with a low around 55.
Wednesday: Mostly sunny, with a high near 79.
Freeze Warning For Tonight
March 14, 2017
Here is your official North Escambia area forecast:
FREEZE WARNING FOR TONIGHT
Tonight: Patchy frost after 5am. Otherwise, mostly clear, with a low around 33. North wind 5 to 10 mph.
Wednesday: Patchy frost before 9am. Otherwise, sunny, with a high near 54. North wind 5 to 10 mph.
Wednesday Night: Areas of frost after 1am. Otherwise, mostly clear, with a low around 28. North wind around 5 mph becoming calm in the evening.
Thursday: Areas of frost before 9am. Otherwise, sunny, with a high near 60. Calm wind becoming northeast around 5 mph.
Thursday Night: Mostly clear, with a low around 40. Calm wind.
Friday: Mostly sunny, with a high near 70. Calm wind becoming south around 5 mph in the morning.
Friday Night: Mostly clear, with a low around 51. South wind around 5 mph.
Saturday: A 20 percent chance of showers. Mostly sunny, with a high near 74. Southwest wind 5 to 10 mph becoming northwest in the afternoon.
Saturday Night: Mostly clear, with a low around 47. North wind around 5 mph.
Sunday: Sunny, with a high near 70.
Sunday Night: Mostly clear, with a low around 46.
Monday: Sunny, with a high near 74.
Monday Night: Mostly clear, with a low around 52.
Tuesday: Sunny, with a high near 77.
Chance Of Rain Today, Colder Mid Week
March 13, 2017
Here is your official North Escambia area forecast:
Monday: A 40 percent chance of showers, mainly after noon. Cloudy, with a high near 68. East wind around 5 mph becoming southwest in the afternoon.
Monday Night: A 30 percent chance of showers. Cloudy, then gradually becoming partly cloudy, with a low around 44. Northwest wind around 5 mph.
Tuesday: Sunny, with a high near 63. Northwest wind 5 to 10 mph.
Tuesday Night: Mostly clear, with a low around 37. North wind around 5 mph.
Wednesday: Sunny, with a high near 56. North wind 5 to 10 mph.
Wednesday Night: Mostly clear, with a low around 34. Northeast wind around 5 mph.
Thursday: Mostly sunny, with a high near 59. North wind around 5 mph.
Thursday Night: Partly cloudy, with a low around 40. North wind around 5 mph becoming calm.
Friday: Mostly sunny, with a high near 67.
Friday Night: Partly cloudy, with a low around 48.
Saturday: A 20 percent chance of showers. Mostly sunny, with a high near 72.
Saturday Night: Partly cloudy, with a low around 50.
Sunday: Sunny, with a high near 74.