Gulf Power requests rate increase
BY FRANKLIN HAYES Gulf Breeze News franklin@gulfbreezenews.com

Franklin Hayes/Gulf Breeze News Gulf Power employees Ed Morrell, left, and Don Nawoschikin install replacement utilities on Bayshore road Sept. 5. Gulf Power had to move the power lines 20 feet back from the road in order to make room for a road widening project on Bayshore. Santa Rosa County engineering officials said Roads, inc. will install a dedicated right turn lane at the intersection of Bayshore and U.S. 98 and a directional median on U.S. 98. The project should be complete in less than 90 days.

Electricity bills may be going up in the near future but not as much as last year, a Gulf Power representative said.

"The average customer will see an increase of 25 cents," said John Hutchinson, Gulf Power's manager of public affairs.

Hutchinson said rates went up as much as $10 per 1,000 kilowatt hours used last year, adding the increase was mainly due to increased fuel costs.

"Every year we file with the PSC [Public Service Commission]," Hutchinson said. "Every year the PSC adjusts our rates up or down based on the amount of fuel we use and our cost to meet environmental regulations."

The official added that this year's increase was due to costs associated with meeting new environmental regulations.

The PSC is set to approve or deny the rate increase in November and any change would go into effect in January of 2008.

When asked about the last Gulf Power rate decrease approved by the PSC, Hutchinson responded: "It was probably two or three years ago. Fuel costs have gone up for the past four or five years."

On Aug. 8, Gulf Power reported their customers purchased more electricity than ever before in the history of the company. In a press release, Gulf Power said its customers broke the previous record for peak demand of 2,537 megawatts set in July of this year.

Hutchinson maintained that the rate increases were not related to increased demand.

"Demand doesn't affect the cost of fuel," Hutchinson said. "Our rates are impacted by the cost of fuel not by peak demand."