Gulf Power Seeks $93 Million Rate Hike, Partially For North Escambia Land Purchases
December 13, 2011
Gulf Power began Monday to try and convince state regulators that customers should pay an additional $93.5 million a year for electricity — partially to fund land purchases in North Escambia that could be for a nuclear power plant.
Attorneys for consumers and business groups criticized the proposal on a series of grounds Monday. For example, they targeted money that the company wants to use for employee bonuses and money that would go toward purchasing 4,000 acres near McDavid for a possible future nuclear-power plant.
While Gulf Power says it is justified in seeking money for the land purchase, state Associate Public Counsel Joe McGlothlin said the company has not taken initial regulatory steps for a nuclear plant.
“In this case, the cart is about a city block in front of the horse,” said McGlothlin, whose office represents consumers in utility issues.
Currently, a Gulf Power residential customer who uses 1,000 kilowatt hours a month of electricity pays $127.16. That number will drop slightly to $125.80 in January because of lower fuel and environmental costs. But if the PSC approves Gulf Power’s base-rate proposal, the customer bill would jump to $133.46 in April.
Utilities commonly use 1,000 kilowatt hours as a benchmark, though many customers use more power than that each month. After the hearing this week, the commission could make a decision as early as February about whether to approve Gulf Power’s proposal.
Top executives told the state Public Service Commission that Gulf Power has not received a base-rate increase in nearly a decade and needs to collect more money to continue upgrading its system in Northwest Florida.
“We asked for what we thought we needed,” Gulf Power President and Chief Executive Officer Mark Crosswhite told the commission on the first day of a week-long hearing. ” We didn’t pad it.”
But attorneys for consumers and business groups argued that Gulf Power far overstated the need to raise rates, contending that the utility had only justified a $16.2 million hike.
“Gulf simply doesn’t need any more than that to continue providing safe, reliable and adequate service,” said Robert Scheffel Wright, an attorney for the Florida Retail Federation, which often becomes involved in utility issues.
Gulf Power’s request likely will be the first of three major rate cases that the Public Service Commission will consider during the coming year. Florida Power & Light and Progress Energy Florida in early 2012 are expected to seek increases in base rates — the billions of dollars that flow to utilities each year to cover many of their day-to-day costs.
Base-rate cases involve myriad details of utility financing. But looming over the Gulf case are questions about how much customers should be required to pay amid tough economic times, an issue that was raised during earlier public hearings in the Panhandle.
“One of the themes we seemed to hear (was), ‘This is just bad timing,’ ” Commissioner Lisa Edgar said as she questioned Crosswhite about money-saving steps the utility has taken.
Gulf Power earlier this year proposed a $93.5 million base-rate increase for such needs as power-plant fuel and environmental compliance. That total has increased to about $101 million because of a shift of costs from the environmental-compliance part of customers’ bills. But because it is a shift, Gulf says the bottom-line impact on customers would be $93.5 million.
Perhaps the biggest issue during the hearing will be how much money Gulf should be able to earn through base rates. The company is seeking an 11.7 percent return on equity, a common measure of profitability, but opponents say that number should be limited to 9.25 percent.
Vicki Gordon Kaufman, an attorney for the Florida Industrial Power Users Group, a business group that includes heavy users of electricity, described the 11.7 percent proposal as “pretty shocking.”
But Gulf officials said they need to offer returns that will attract investors to help finance costly improvements in the company’s electric system. Chief Financial Officer Scott Teel said Gulf’s return on equity dropped from 12.75 percent in 2007 to 9.5 percent in 2010 and has continued to sink this year.
Crosswhite said the utility has taken steps to hold down costs and is concerned about financially strapped customers’ ability to pay for electricity. But he said he also has concerns about being able to provide adequate service if the company does not receive a base-rate increase.
“We tried to push this case off as long as we could,” Crosswhite said.
The News Service Florida contributed to this report.
Atmore Reopens Animal Shelter
December 13, 2011
After closing its doors last summer, Atmore’s animal shelter reopened Monday thanks to a joint partnership between the City of Atmore and the Poarch Creek Indians and a generous donor.
The shelter is now known as the “Clifford and Margaret J. Smith Animal Shelter” in honor of the late Margaret Smith. Her family donated $200,000 in her honor that was used to make the shelter re-opening possible.
“Animal control is something that we all recognize that needs to be taken care of,” Atmore Mayor Howard Shell said during a ribbon cutting, “and we want to do it in a way that is dignified.”
The shelter is now open for business, taking in homeless animals and offering dog and cat adoptions.
The shelter was previously operated by the Humane Society of Escambia County, but was closed May 31 after the group lost over 60 percent of their funding when the Neal Trust of Brewton to came to an end.
For more photos from the reopening, click here.
Pictured top: The ribbon is cut for the reopening of the Atmore animal shelter. Pictured inset: One of the dogs available for adoption at the facility. Pictured below: A playful cat awaits adoption. NorthEscambia.com photos, click to enlarge.
Arthur Brown Road Resurfacing Project Begins
December 13, 2011
Work began Monday to resurface a portion of Arthur Brown Road in Walnut Hill.
Only a 2.7 mile portion of roadway will be resurfaced, from Highway 97 to Pine Forest Road. The remaining 4.3 miles of Arthur Brown Road, from Pine Forest Road to Pineville Road, will not be repaved.
The project includes the shoulder work, striping and other routine items. Contractor Roads, Inc. will be required to maintain traffic flow at all times, closing one lane with minimal delays during work hours. The roads will be open to two-way traffic during all non-working hours.
Roads, Inc. of Northwest Florida was the low bidder on the project at $966,769.35 to be paid out of Local Option Sales Tax monies. Four other bids were received — ranging from $1,226,051.90 from Panhandle Grading and Paving to $1,634,740.53 from Anderson Columbia.
The total $966,769.35 project also includes the resurfacing of a portion of Barrineau Park Road, Untriener Avenue in Ensley and Desert Street in Ferry Pass. Additional minor work will also be performed under the contract on Beulah Road, Bridlewood Road, Klondike Road, Eight Mile Creek Road, Leonard Street, Cross Street, and Chemstrand Road.
Pictured above and below: A milling machine is used to remove old asphalt as a construction project got underway Monday on Arthur Brown Road in Walnut Hill. NorthEscambia.com photos, click to enlarge.
One Airlifted After Century Crash
December 13, 2011
One person was airlifted to Sacred Heart Hospital suffering from stab wounds after a single vehicle wreck on Creamer Road west of Century Monday night.
The stab wounds were reportedly self-inflicted at an address on State Line Road, not far from the wreck scene. The adult male reportedly lost consciousness and struck a culvert and small tree.
Further details have not been released; the incident is under investigation by the Escambia County Sheriff’s Office.
The Century Station of Escambia Fire Rescue and Atmore Ambulance also responded to the accident.
NorthEscambia.com photos, click to enlarge.
ECUA’s Recycling Program Sets Records
December 13, 2011
ECUA’s recycling program continues to grow and just recently set a new weekly record.
During the week of November 28, the ECUA Curbside Recycling Program collected a total of 262 tons of recyclable materials. According to Randy Rudd, ECUA acting deputy director of shared services, “This is the highest weekly total since the program’s inception in January 2009; and the program continues to evolve with tremendous success.”
ECUA’s recycling program debuted on January 5, 2009, as part of the regular residential sanitation service. Now, as the program nears its three-year anniversary, 44,857 customers, or 60% of ECUA’s sanitation customers are participating in the program.
For more information on the ECUA Recycling and Sanitation Programs, or to sign-up for the recycling program, visit the ECUA website at www.ecua.fl.gov or call (850) 476-0480.
Cat’s Hat: Bid On Autographed Country Star Hat For Manna Food Pantries
December 13, 2011
The annual Cat Country 98.7 Manna Hat Auction is underway to raise much needed funds for Manna Food Pantries.
The hat is autographed by a long list of country stars, including award winners like Little Big Town, Kenny Chesney, Jason Aldean, Chris Young, Miranda Lambert, Blake Shelton, Erick Church and Toby Keith.
The autographs were collected at various concerts and events by Cat Country’s Brent Lane.
“This year the need is particularly great,” Brent Lane said about the need at Manna Food Pantries. “There has been an increase of 24 percent in services.”
One hundred percent of the auction proceeds will be donated by Cat Country to the Manna Food Pantries. That hat is listed on ebay in an auction that ends Friday morning.
To view the auction and make a bid, click here.
Shot Deputy’s Condition Improves
December 13, 2011
The Okaloosa County deputy shot last week in Santa Rosa County has been upgraded from serious to fair condition.
Steve Hough, 42,was shot in the face and twice in the leg while serving a warrant in the 5400 block of Camille Gardens Circle with the U.S. Marshals Florida Regional Fugitive Task Force.
“Investigator Hough is a tough, determined individual when it comes to tracking down criminals and he is putting that same toughness and determination we admire so much into his recovery,” said Okaloosa Sheriff Larry Ashley. “All of us are aware of how dangerous it can be when you wear a badge and take an oath to protect the public as a law enforcement officer, and we pray for Steve to be back on his feet as soon as possible.”
The shooter, David Christopher Lewis, 34, was also wounded. He was last reported to be in critical condition.
Fourth Residential Fire Of The Month In Santa Rosa
December 12, 2011
A residential structure Monday night represents the fourth candle to be extinguished on Santa Rosa County’s “Keep Your Holidays Bright” fire safety tree. About 8:11 p.m., East Milton, Bagdad, Skyline and Harold fire departments responded to the home located in the 5700 block of North Airport Road in East Milton. The fire was contained to one bedroom, however the entire home incurred smoke damage displacing the family of two. No injuries were reported and the American Red Cross was called to assist. The cause of the fire is under investigation by the state fire marshal.
Santa Rosa County emergency service agencies are teaming up for the fifth year to promote fire safety during the month of December with the “Keep Your Holidays Bright” campaign. While a joyous time of year, cold weather, holiday decorations and festivities can create serious fire dangers. Fire fighters hope to reduce the number of fires in Santa Rosa County by promoting simple, life-saving holiday safety tips throughout the month.
Man Accused Of Molesting Underage Tate High Student
December 12, 2011
A 48-year old Cantonment man is behind bars, accused of molesting a Tate High School student in an off-campus incident.
Marcus Eugene Stone is charged with lewd or lascivious behavior with a victim age 12-16. He remained in the Escambia County Jail early Monday morning with bond set at $20,000.
The Tate student contacted the school resource office and reported that an “uncomfortable situation” had occurred. The resource officer immediately contacted an Escambia County Sheriff’s Office investigator and the Department of Children and Families.
The juvenile female told investigators that Stone would routinely enter her room and give her back massages in order to wake her up each morning for school. On the morning of her report, said told investigators that back massage progressed with Stone inappropriately touching her.
Upon his arrest, Stone told deputies that he wanted to speak to an attorney before he said anything, according to an Escambia County Sheriff’s Office arrest report.
Atmore Man Free On Bond After Century Shotgun Shooting
December 12, 2011
The 55-year old Atmore man accused of shooting another man with a shotgun last week in Century has been released from jail on $13,000 bond.
Willie Floyd of Freemanville Drive is charged with aggravated battery, discharging a firearm in a public place and criminal mischief. He’s accused of shooting 30-year old Deririck Medlock of Hoover, Ala., last week as he ran across the 8100 block of North Century Boulevard.
Medlock told the Escambia County Sheriff’s Office that he was traveling north on Century Boulevard when Floyd swerved in front of him, cutting him off. Medlock pulled into the parking lot of the Century Quick Stop after the incident. Floyd then pulled into the parking lot and opened fire with a shotgun, hitting Medlock’s car with birdshot.
As Medlock ran across North Century Boulevard, he heard another shot and was hit in the leg with birdshot. His injuries were not severe.
For an earlier story on the incident, click here.
Pictured top: A Hoover, Ala., man explains how an Atmore man shot him with shotgun Monday in Century as Escambia County Sheriff’s Office Investigator Frank Way listens. Pictured below: Damage to the victim’s car. NorthEscambia.com photos, click to enlarge.
