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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
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TO: |
Office of Commission Clerk (Stauffer) |
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FROM: |
Division of Engineering (King) Office of the General Counsel (Tan, Corbari, Cuello, Lherisson) |
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RE: |
Docket No. 160186-EI – Petition for rate increase by Gulf Power Company. Docket No. 160170-EI-Petition for approval of 2016 depreciation and dismantlement studies, approval of proposed depreciation rates and annual dismantlement accruals and Plant Smith Units 1 and 2 regulatory asset amortization, by Gulf Power Company. |
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AGENDA: |
12/06/16 – Regular Agenda – Interested Persons May Participate |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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SPECIAL INSTRUCTIONS: |
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In Gulf’s most recent base rate proceeding in Docket No.130140-EI, the Commission approved a settlement agreement which authorized revenue increases of $35 million in January 2014 and an additional $20 million in 2015, for a total increase of $55 million.[1] The settlement covers a term of 42 months that began with the first billing cycle of January 2014 and ends on the last billing cycle of June 2017.
This proceeding commenced on October 12, 2016, with the filing of a petition for a permanent rate increase and motion to consolidate dockets by Gulf Power Company (Gulf).[2] Gulf provides electric service to approximately 450,000 retail customers in all or parts of eight Florida counties. Gulf requested an increase in its retail rates and charges to generate approximately $106.8 million in additional gross annual revenues, effective July 1, 2017. Gulf also requested approval of an authorized return on equity (ROE) of 11.0 percent, with a range of plus or minus 100 basis points. The hearing is scheduled for March 20-24, 2017. Gulf did not request any interim rate relief.
On October 14, 2016, the Commission acknowledged the Office of Public Counsel’s notice of intervention in this proceeding.[3] Also, petitions for intervention were recently filed by the Federal Executive Agencies and the Southern Alliance for Clean Energy.
This recommendation addresses the suspension of the requested permanent rate increase. The Commission has jurisdiction pursuant to Sections 366.06(2), (3), and (4), Florida Statutes.