Gulf Power rates drop $9.92 per month

TALLAHASSEE, Fla. (AP) - Gulf Power Co. rates are going down for its Florida Panhandle customers.

The Florida Public Service Commission on Tuesday approved the Pensacola-based company's request for a $58.5 million reduction in fuel charges.

That will knock $9.92 off the monthly bill for a customer using 1,000 kilowatt hours, which is near average, effective July 2.

The total bill would drop from $126.53 to $116.61.

The reduction is due to greater reliance on natural gas rather than coal to generate power for the 431,000 homes, businesses and other customers served by the utility.

Gas prices have declined as supplies have increased.

The commission usually adjusts fuel charges once a year in November, but Gulf asked for a mid-course correction due to recent cost savings.