Florida’s Gulf Power proposes rate hike with demand charge

Facebook
Twitter
LinkedIn
Reddit
Email
The new proposal would discourage energy saving and efficiency by reducing energy charges for customers based on energy usage. Source: Gulf Power

Floridian utility Gulf Power has proposed to increase its power rates for customers by implementing a mandatory demand charge.

Proposals would raise the utility’s fixed charge for electric customers to US$47.40 per month; an increase of 155%, according to the Pensacola News Journal. Already charging one of the highest rates in the Sunshine State, Gulf Power’s proposals would significantly disadvantage solar users in its catchment area.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Critically, the proposals aim to reduce energy charges for customers based on energy usage – meaning that customers who attempt to save energy (through solar or other distributed generation sources) will be penalised and thus discouraged.

“Charging based on electricity use allows customers to save money by reducing consumption. Higher fixed charges and residential demand charges don’t do a good job of aligning customer behaviour with the grid’s needs and reduce the opportunity for customers to save money by going solar,” said Sean Gallagher, vice president of state affairs for the Solar Energy Industries Association (SEIA), in a statement. “We should be doing just the opposite in the Sunshine State. There are other approaches that are fair to utilities, customers and solar providers alike, but this isn’t one of them.”

If Gulf Power’s proposal is approved, the rate changes would particularly harm solar users who are lower-usage customers than traditional electricity consumers. Therefore, the incentive for using solar and being energy efficient would significantly decrease.

The proposals have experienced opposition from clean energy advocates and have been widely rejected by state regulators across the nation. The Florida Public Service Commission (PSC) is expected to review the proposal in May 2017. 

Read Next

October 30, 2026
US solar manufacturer First Solar reported net sales of US$1.23 billion for the third quarter of 2026, down 23% year-on-year.
October 30, 2026
US CBP has released solar cell shipments from Japanese manufacturer TOYO’s Ethiopian facility after reviewing its supply chain documentation.
October 30, 2026
Michigan utility DTE Energy has announced the operational status of its 132MW Fish Creek Solar Park near Sheridan, Michigan.
October 30, 2026
SEG Solar has signed a land agreement for a planned US$950 million heterojunction (HJT) solar cell manufacturing facility at its Tomball Industrial Campus near Houston, Texas.
October 29, 2026
Nextpower has reported net income of US$165 million and revenue of over US$1.1 billion in its results for the quarter ending 2 October.
October 29, 2026
First Solar has inaugurated the first 1.7GW phase of its US$330 million manufacturing facility in Gaffney, Cherokee County, South Carolina.

Upcoming Events

Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye