Fla. Examines Real-time Pricing Costs

Fortnightly Magazine - December 1995
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The Florida Public Service Commission (PSC) has ruled that Gulf Power Co. may record a revenue shortfall associated with its experimental real-time pricing program "above the line" in determining current earnings under a rate agreement capping company profits at a 12.7-percent return on equity. The program permits Gulf Power to price services for large industrial customers to reflect lower costs associated with offpeak usage. The PSC said the utility could subtract the $975,000 in lost revenues and $2,280 in real-time pricing program costs from reported earnings for its 1995 calendar year earnings surveillance report. It directed its staff, however, to continue to monitor the impact of the costs on utility earnings to ensure that "Gulf does not use this rate schedule to manipulate a potential overearnings situation." Re Gulf Power Co., Docket No. 950917-EI, Order No. PSC-95-1155-FOF-EI, Sept. 18, 1995 (Fla.P.S.C.).


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