The Florida Public Service Commission (PSC) today approved an agreement for Gulf Power Company (Gulf) that adjusts Hurricane Michael restoration costs by $5 million and requires Gulf to implement an enhanced method of tracking storm recovery costs.
“Hurricane Michael was the most powerful storm to ever impact Gulf’s Panama City service area, causing widespread power outages and infrastructure damage,” said PSC Chairman Gary Clark. “With today’s agreement approval, Gulf customers will benefit from a reduction in both the amount and duration of cost recovery. Also, plans for better monitoring of future restoration costs will help the company and its customers.”
Gulf initially estimated its Hurricane Michael-related costs would be $342 million, and the PSC approved Gulf’s request to implement an interim charge to recover costs to restore electric service caused by the hurricane. The approved interim monthly charge for Gulf’s residential customers was $8.00 per 1,000 kilowatt-hours and began in July 2019.
Gulf later petitioned the PSC for final recovery of $295 million. The company entered into a settlement agreement with the Office of Public Counsel—representing consumers—and the Federal Executive Agencies before the scheduled hearing was held to determine Gulf’s actual allowable recovery costs.
Today’s agreement approval avoids a PSC hearing and resolves all issues in the case. Gulf’s customer storm restoration recovery charge will now be reduced to 53 months instead of five years.
Hurricane Michael was the most destructive hurricane in Gulf’s territory, and the utility needed workers from other utilities and contractors to help restore power in the storm’s aftermath.
Gulf serves approximately 463,000 customers in Northwest Florida.
For additional information, visit www.floridapsc.com.
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