Dive Summary:
- The Florida-based Gulf Power Co. is asking the Florida Public Service Commission for a $74 million annual base rate hike to pay for upgrades to its power grid system. A second-phase rate hike of $16.4 million scheduled for 2015 would pay for new environmental requirements, Gulf Power executives said.
- Over the next several years, the utility will need more revenue to install 669 miles of new power lines, 13,000 new transformers, 38 new substations and to replace nearly 15,000 power poles, CEO of Gulf Power Stan Connally said in a press statement. For instance, one 70-mile section of Gulf Power’s transmission lines is more than 70 years of age and must be replaced.
- With both rate hikes totaling $90.4 million, homeowners will see an extra $10.93 a month, or $129.81 for 1,000 kilowatt hours, the highest in Gulf Power’s history. The utility serves 400,000 customers.
From the article:
“We have transformers and other equipment operating well beyond their operational expectancy,” Connally said. “We must rebuild parts of our system so we can continue to provide reliable service.”