Fla. PSC rejects part of Gulf Power rate request

AP News
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Posted: Feb 27, 2012 4:07 PM
Fla. PSC rejects part of Gulf Power rate request

The Florida Public Service Commission has cut by nearly 40 percent of an annual revenue increase sought by Gulf Power Co.

The panel on Monday approved $64.1 million of the utility's request for $101.6 million.

The commission will hold another hearing on March 12 to set new rates for customers.

The Pensacola-based utility serves more than 431,000 homes, businesses and other customers in the western Florida Panhandle.

A key factor in the reduction was the commission's approval of a 10.25 percent return on equity. The company asked for 11.7 percent.

The commission also refused to include a new power plant site in the base rate because the need for such a facility hasn't yet been determined.

In addition, the panel cut executive incentive compensation by $3.9 million.