SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 2, 2005
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Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
0-2429 Gulf Power Company 59-0276810
(A Maine Corporation)
One Energy Place
Pensacola, Florida 32520-0786
(850) 444-6111
The address of the registrant has not changed since the last report.
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events.
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See MANAGEMENT'S DISCUSSION AND ANALYSIS - RESULTS OF OPERATIONS - "Future
Earnings Potential - FERC and Florida PSC Matters - Storm Damage Cost Recovery"
and Note (O) to the condensed financial statements of Gulf Power Company ("Gulf
Power") in the Quarterly Report on Form 10-Q for the quarter ended September 30,
2004 for information on damage related to Hurricane Ivan and the related costs
of restoration. On February 2, 2005, Gulf Power, the Office of Public Counsel
for the State of Florida and the Florida Industrial Power Users Group filed a
Stipulation and Settlement with the Florida Public Service Commission ("PSC") to
resolve all matters regarding the effects of Hurricane Ivan on Gulf Power's
reserve for property damage (the "Stipulation").
Under the terms of the Stipulation, Gulf Power will recover the retail portion
of $51.7 million of Hurricane Ivan storm damage costs, plus interest and revenue
taxes, through a monthly surcharge applied to retail customer bills for a
twenty-four month period. Such recovery amount excludes the $27.8 million
balance in Gulf Power's reserve prior to Hurricane Ivan along with $17.2 million
in costs reimbursed by insurance. For purposes of the Stipulation, such recovery
amount also excludes $44.8 million from the amount to be recovered, including
$26.4 million in capital expenditures that will be treated as a regular addition
to Gulf Power's plant-in-service and included in retail rate base.
In the event that the Florida Legislature enacts legislation that allows
for the securitization of storm recovery financing under terms of a financing
order that provides for the establishment of storm recovery property through a
surcharge, the Stipulation provides that Gulf Power may request an order from
the Florida PSC under such legislation to securitize the retail portion of the
agreed $51.7 million plus interest and revenue taxes, as well as additional
amounts not to exceed $27.8 million plus interest and revenue taxes.
Except under circumstances provided for within the Stipulation, Gulf Power has
agreed that it will not seek any additional increase in its base rates and
charges to become effective on or before March 1, 2007.
The Stipulation is subject to the approval of the Florida PSC, which is expected
to rule on the Stipulation at its next meeting on March 1, 2005. The ultimate
outcome of this matter cannot now be determined.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date: February 2, 2005 GULF POWER COMPANY
By /s/ Wayne Boston
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Wayne Boston
Assistant Secretary