Rising coal and natural gas prices are causing Gulf Power company's bills to go up five percent beginning January 1.
Twice each year the Florida Public Service Commission adjusts electricity prices up or down to reflect the changing costs of fuels used to generate power and the costs to meet environmental regulations.
Gulf Power's price for 1,000 kilowatt hours, which is the average residential use, will increase by $4.57 from $88.00 two almost $93.00.
The rising cost of fuel, particularly natural gas, is impacting power companies. Fuel costs are a straight pass through to the customer and as those costs go up and down, Gulf Power's prices are adjusted.
Gulf Power boasts it still has the lowest electric rates in the state and some of the lowest in the country. Earlier this week the PSC granted Florida Power and Light (FP&L) an increase of over $17.00 a month.