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Thursday, March 4, 2010

Review Discloses Gulf Power Customers Currently Are Charged 24% Lower Rates Than FPU Customers

At Tuesday’s Marianna City Commission meeting, Commissioner John Roberts disclosed that a review had been conducted comparing electrical rates being charged by Florida Public Utilities to its Marianna customers to the charges direct customers of Gulf Power are paying in the seventy-two Northwest Florida communities served by Gulf Power. This includes the city of Graceville, along with Chipley and Bonifay in this area. This review disclosed a 24% differential in the rates.

Florida Public Utilities is not a power producing utility, it only transmits power it purchases from Gulf Power on a ten year contract. The cost of that electricity is set in that contract, and is the basis for the charges FPU makes to its customers. The real winner in this scenario would appear to be Gulf Power, and the real losers would be the FPU customers.

The Commissioners also discussed the fact that the City renewed the franchise agreement with Florida Public Utilities on the contingency that several conditions be met within two years. These conditions involve renegotiation of several elements of the contract with Gulf Power. To date, these conditions have not been met….and thirteen of the allowed twenty four months have passed.

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