Print Page  Close Window

SEC Filings

10-Q
ALABAMA POWER CO filed this Form 10-Q on 11/01/2017
Entire Document
 << Previous Page | Next Page >>
GULF POWER COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

an increase in retail base revenues, partially offset by a write-down of $32.5 million ($20 million after tax) of Gulf Power's ownership of Plant Scherer Unit 3 resulting from the 2017 Rate Case Settlement Agreement and higher operations and maintenance expenses. See Note (B) to the Condensed Financial Statements under "Regulatory MattersGulf PowerRetail Base Rate Cases" herein for additional information regarding the 2017 Rate Case Settlement Agreement.
Retail Revenues
Third Quarter 2017 vs. Third Quarter 2016
 
Year-to-Date 2017 vs. Year-to-Date 2016
(change in millions)
 
(% change)
 
(change in millions)
 
(% change)
$(2)
 
(0.5)
 
$(6)
 
(0.6)
In the third quarter 2017, retail revenues were $375 million compared to $377 million for the corresponding period in 2016. For year-to-date 2017, retail revenues were $972 million compared to $978 million for the corresponding period in 2016.
Details of the changes in retail revenues were as follows:
 
Third Quarter 2017
 
Year-to-Date 2017
 
(in millions)
 
(% change)
 
(in millions)
 
(% change)
Retail – prior year
$
377

 
 
 
$
978

 
 
Estimated change resulting from –
 
 
 
 
 
 
 
Rates and pricing
21

 
5.6

 
28

 
2.9

Sales growth
3

 
0.8

 
1

 
0.1

Weather
(9
)
 
(2.4
)
 
(14
)
 
(1.4
)
Fuel and other cost recovery
(17
)
 
(4.5
)
 
(21
)
 
(2.2
)
Retail – current year
$
375

 
(0.5
)%
 
$
972

 
(0.6
)%
See MANAGEMENT'S DISCUSSION AND ANALYSIS – FUTURE EARNINGS POTENTIAL – "Retail Regulatory Matters" of Gulf Power in Item 7 and Note 1 to the financial statements of Gulf Power under "Revenues" and Note 3 to the financial statements of Gulf Power under "Retail Regulatory Matters" in Item 8 of the Form 10-K for additional information regarding Gulf Power's retail base rate case and cost recovery clauses, including Gulf Power's fuel cost recovery, purchased power capacity recovery, environmental cost recovery, and energy conservation cost recovery clauses.
Revenues associated with changes in rates and pricing increased in the third quarter and year-to-date 2017 when compared to the corresponding periods in 2016 primarily due to an increase in retail base revenues effective July 2017, as well as an increase in environmental cost recovery effective November 2016 resulting from Gulf Power's ownership of Plant Scherer Unit 3 being rededicated to retail service.
Revenues attributable to changes in sales increased slightly in the third quarter and year-to-date 2017 when compared to the corresponding periods in 2016. For the third quarter 2017, weather-adjusted KWH sales to residential and commercial customers increased 5.2% and 1.5%, respectively. Weather-adjusted KWH sales to residential customers increased 1.3% year-to-date 2017. These increases were primarily due to customer growth, partially offset by lower customer usage primarily resulting from efficiency improvements in appliances and lighting. Weather-adjusted KWH sales to commercial customers decreased slightly year-to-date 2017 as a result of lower customer usage primarily resulting from efficiency improvements in appliances and lighting, mostly offset by customer growth. KWH sales to industrial customers decreased 7.1% and 6.1% for the third quarter and year-to-date 2017, respectively, primarily due to changes in customers' operations and energy efficiency improvements.
Fuel and other cost recovery revenues decreased in the third quarter and year-to-date 2017 when compared to the corresponding periods in 2016, primarily due to lower fuel, purchased power capacity, and energy conservation recoverable costs, partially offset by higher environmental recoverable costs. Fuel and other cost recovery

106

 << Previous Page | Next Page >>