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Fla. regulators approve $103M in tax savings for Gulf Power customers

Gulf Power Co. has received approval from Florida regulators to pass along $103.2 million in federal tax savings to its electric customers in the state, starting in April.

The state Public Service Commission approved reductions of $18.2 million to the Southern Co. subsidiary's base rates, $15.6 million to its 2018 environmental cost recovery rate and $69.4 million to its 2018 fuel cost recovery rate, the PSC said in a March 26 news release.

Average residential customers using 1,112 kWh per month can expect to see a $14 drop on their monthly energy bill for 2018, the largest decrease in company history, Gulf Power said in a statement. More than $30 million in savings for customers will continue into 2019 and beyond.

Gulf Power serves 460,000 customers in Florida's Panhandle.

The company's tax-savings plan had the support of the Office of Public Counsel, which represents customers, the Florida Industrial Power Users Group and the Southern Alliance for Clean Energy.

The Florida PSC also approved an increase in Gulf Power's maximum equity ratio to 53.5% from 52.5% for all retail regulatory purposes.