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Florida Rejects Electric Discount Plan

Fortnightly Magazine - October 1 1996

The Florida Public Service Commission (PSC) has rejected a proposal by Gulf Power Co. to offer negotiated contracts to large, "at-risk" customers that would otherwise leave the system to find power from another source. It also questioned the way the company would set a proposed price floor for contract negotiations that was based on incremental costs.

The PSC said the proposed procedures for identifying qualifying "at-risk load" were "too scant to evaluate." As for the price floor, it criticized Gulf Power's reliance on system values rather than customer-specific incremental cost, and questioned whether the company could ensure accurate measurement of the incremental cost of serving the qualifying group of customers. Re Gulf Power Co., Dkt. No. 951161-EI, Order No. PSC-96-0845-FOF-EI, July 2, 1996 (Fla.P.S.C.).

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