Panama City- By July 1st, we've already seen some record high temperatures this summer. But the hotter weather isn't the only reason for the bigger bills. At the beginning of this year, Gulf Power customers received a 3% rate hike.

Part of the money is going towards a $600-million scrubber, designed to reduce emissions at Gulf Power's coal-burning Crist power plant near Pensacola. The scrubber will reduce emissions by up to 95 percent to meet 2012 state and federal environmental regulations. "Our customers are seeing that cost in that environmental cost recovery on their bill," says Sandy Sims with Gulf Power.

So how can you reduce your electric bills? The experts recommend raising your thermostat, especially during these hot summer months. Gulf Power recommeds you set it at 78. For every degree below 78 you will pay 1.5% more to cool your home, that means if you have it set at 76, you will pay 3% more than if you set it at 78.

There are other things you can do to keep your bill lower. "We recommend ceiling fans. Ceiling fans, while they don't actually lower the temperature in the room, they make you feel cooler," said Sims. She also says make sure to service your heating and cooling equipment regularly. "Change the filter, change lights, change lights to the CFL's, those save you alot of money in the long run as well."

In these tough economic times, gulf power is working with customers to help them get their bills paid. "Our reps are skilled with some tools that, number one, can help you reduce your bill, number 2, work with you on some payment options, or if you actually need assistance we can point you in the right direction," said Sims.

Sherl Holloway, who keeps his thermastat at 80, offers this solution to keeping your bill low.
"Go on trips and stay out of the house alot."

Sims says customers were due to see a 6% rate increase. But Gulf Power dropped the storm surcharge and decreased the fuel surcharge, making the net increase 3%.