A surcharge used for hurricane repairs will be dropped from Gulf Power bills starting in July.

The electric utility will stop collecting the $2.57 per 1,000 kilowatt-hours fee that was approved by the Florida Public Service Commission after Hurricane Ivan in 2004, and extended after hurricanes Dennis and Katrina. Combined, those hurricanes did almost $200 million in damages to Northwest Florida’s electric system.

“These hurricanes did a tremendous amount of damage to our system and we worked with the state to soften the impact on customer bills by spreading the repair costs out over the last 5 years,” Sandy Sims, Gulf Power spokeswoman, said. “The surcharge also helped us to rebuild our storm reserve fund which is critical to keep future storms from causing large increases.”

Gulf Power’s charge for 1,000 kilowatt-hours will decrease to $121.53 — down from $124.10.

“We prepare for storm season every year, but when you have back to back hurricanes it carries a tremendous price tag,” Sims said. “We know our customers expect us to work as hard and as fast as possible after a hurricane and to bring in thousands of extra workers and materials. That costs money, but it’s a small price to pay to help get the power on much quicker.” 

Sims said lowering the price of electricity is always positive and noted that Gulf Power offers energy and money saving tips on the company’s Web site at www.gulfpower.com.  Storm preparation tips and safety information is also available on the Web site.