PENSACOLA — Gulf Power customers could see lower electric bills beginning this spring if the Florida Public Service Commission approves the utility's request to pass along federal tax savings.
"If the Florida Public Service Commission approves this agreement, customers should see the savings beginning in their April bills,” Stan Connally, Gulf Power's chairman, president and CEO said in a news release.
The average customer would see a $14 decrease in their monthly power bill in 2018 if the plan earns PSC approval, according to the news release.
The company is asking the PSC that it be allowed to offset a projected $103 million in tax savings to its 460,000 customers in eight Northwest Florida counties. Additionally, the Gulf Power plan would pass along more than $30 million in savings for customers into 2019 and beyond, according to the news release.
PSC and Gulf Power representatives will discuss the proposal at an informal meeting today.
The tax savings at the center of the Gulf Power rate reduction plan comes on the heels of the federal Tax Cuts and Jobs Act that took effect Jan. 1. The new federal tax law cut the corporate tax rate from 35 percent to 21 percent, thus reducing Gulf Power's federal tax liability.
Gulf Power worked with the Office of Public Counsel, which represents consumers in utility-related issues, the Florida Industrial Power Users Group and the Southern Alliance for Clean Energy to agree on how to deliver the tax savings to customers.
The proposed decrease comes on the heels of record power consumption by Gulf Power customers due to extremely cold temperatures in January.
“This price reduction will provide relief for many who had higher bills due to January’s frigid temps,” Connally said in the news release.