Gulf Power Company is giving a little something back to its customers this holiday season. Beginning January 2011, the typical residential customer will see a 2.8 percent decrease on their electricity bill as compared to January 2010.

The decrease is primarily driven by a lower cost of fuel the utility uses to produce electricity. By strategically monitoring its generation fuel mix to use the most cost-effective generation available, the company was able to lower residential electricity prices for 2011.

“The bottom line is that fuel prices have come down and we’re passing that savings along,” said Jeff Rogers with Gulf Power. “It’s a drop that will directly benefit our customers.”

Gulf Power’s base rates have not changed since 2002. However, the cost of fuel has increased in recent years as demands from developing countries like China and India have grown. Now those costs are coming back down.

“In previous years we saw the costs for fuel soar, but right now we’re projecting the costs will continue to be lower,” said Rogers. “In the end it means lower electricity bills and that’s great news for Gulf Power customers.”

Gulf Power primarily uses coal and natural gas as fuel for generating electricity. The company is an investor-owned electric utility that serves more than 428,000 customers in 10 counties throughout Northwest Florida. The company’s mission is to safely deliver affordable, reliable and environmentally responsible energy to very satisfied customers in strong communities.