Gulf Power received unanimous approval from the Florida Public Service Commission to pass along approximately $103 million in tax savings to its 460,000 customers.
With the approval, the average residential Gulf Power customer using 1,112 kilowatt-hours per month can expect to see a $14 drop on their monthly energy bill for 2018 — the largest decrease in company history. More than $30 million in savings for customers will continue into 2019 and beyond.
“We’re thankful to gain approval from the Commission today so we can now quickly pass these savings on to our customers,” said Stan Connally, Gulf Power chairman, president and CEO. “Gulf Power customers will benefit from this tax reduction in the form of lower energy prices beginning in their April bills.”
The tax savings are the result of federal tax reductions under the new Tax Cuts and Jobs Act, which was signed into law on Dec. 22, 2017, and became effective on Jan. 1, 2018.
The decrease in the Corporate Tax Rate from 35 percent to 21 percent reduces the amount of federal income tax Gulf Power will have to pay and allows the energy provider to pass that savings along to customers.
While the average residential Gulf Power customer who uses 1,112 kilowatt-hours per month will see a $14 drop on their bills, customers who use more energy will see a larger decrease and those who use less, a smaller decrease.
Gulf Power worked together with the Office of Public Counsel, the Florida Industrial Power Users Group and the Southern Alliance for Clean Energy to reach a settlement on how to deliver these savings to customers as soon as possible.
The decrease comes on the heels of record consumption by Gulf Power customers during an unusually cold January.
While Gulf Power will pass along the tax savings to customers across Northwest Florida, the company will continue to invest in the energy grid to maintain the safe and reliable service customers have come to expect.