Gulf Power Company
A former Florida electric utility whose Northwest Florida operations were merged into Florida Power & Light in 2021.
Last updated August 31, 2026
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Overview
Gulf Power Company was an American electric utility headquartered in Pensacola, Florida. Founded in 1925, it served the Florida Panhandle for most of a century, supplying electricity to residential, commercial, industrial, and public-sector customers across Bay, Escambia, Holmes, Jackson, Okaloosa, Santa Rosa, Walton, and Washington counties. At the end of its independent existence, the company served more than 450,000 customers across a territory of approximately 7,550 square miles. The company emerged during a period when electricity in Northwest Florida was supplied by a fragmented collection of small generating units, many of which had originally been built to serve ice plants, lumber operations, street railways, and individual industrial facilities. Gulf Power was organized as a subsidiary of Southeastern Power and Light Company after that holding company acquired Pensacola Electric Company. It subsequently consolidated local systems, expanded transmission infrastructure, and developed a more integrated regional grid. A major early turning point came after the 1926 hurricane season, when severe storm damage destroyed thousands of utility poles and disrupted the old Pensacola generating system. Gulf Power and affiliated utilities rebuilt the network and connected Pensacola to a 110-kilovolt transmission line from the Alabama-Florida border. This reduced dependence on scattered local generators and established a foundation for regional power delivery. For several decades, Gulf Power imported much of its electricity before beginning a more substantial expansion of company-owned generation in the 1940s. Its generating portfolio later included coal, natural gas, and renewable energy. The company owned four power plants and held interests in two additional facilities, with total generating capacity reported at approximately 2.278 gigawatts. Its infrastructure included roughly 1,670 miles of transmission lines and 7,750 miles of distribution lines, including a substantial underground distribution network. Environmental regulation and changes in the economics of coal generation shaped Gulf Power's later strategy. The company retired coal-fired units at Lansing Smith Generating Plant in 2015 and closed Plant Scholz, an 80-megawatt coal facility, after about six decades of operation. Gulf Power also faced litigation concerning coal-ash discharges at Plant Scholz and agreed to cleanup and containment measures as part of a settlement. At the same time, it expanded renewable generation through the Gulf Coast Solar Center and the company-owned Blue Indigo Solar Energy Center. Southern Company remained Gulf Power's principal corporate parent for most of the utility's history. In 2018, NextEra Energy announced an agreement to acquire Gulf Power, and the transaction was completed in January 2019. NextEra subsequently combined Gulf Power legally with Florida Power & Light effective January 1, 2021, while initially maintaining Gulf Power's operations as a separate FPL division. In early 2022, the former Gulf Power territory became part of FPL's Northwest Division. Gulf Power therefore no longer operates as an independent legal utility brand, although its former service area and infrastructure remain part of Florida's electric system.
History
Gulf Power Company's origins lay in the consolidation of small and unreliable electric systems in Northwest Florida. On February 10, 1925, Southeastern Power and Light Company, a holding company with electric, gas, and street-railway interests in several Southern states, purchased Pensacola Electric Company. Gulf Power Company was organized as a Southeastern subsidiary on October 29 of that year. In February 1926, it acquired Chipley Light and Power Company, giving it the operating assets needed to function as a regional public utility. Later in 1926, Pensacola Electric was merged into Gulf Power after the older company had been rescued from receivership. The new utility inherited a difficult operating environment. Electricity had been generated by approximately twenty separate units, many serving specialized loads such as ice plants, lumber yards, and electric transit systems. These facilities were not designed as a coordinated regional grid, and service was subject to frequent interruptions. Gulf Power began modernizing the system despite the weak economic conditions affecting Northwest Florida. The rebuilding effort was tested by the hurricane that struck Florida in September 1926. High winds and storm surge damaged the Pensacola system, destroyed nearly 4,000 deteriorated power poles, and extinguished fires at the old downtown generating plant. More than 600 employees from affiliated companies assisted with restoration. Service was restored and a modernized network installed within approximately 65 days. Later that year, Gulf Power completed a 110-kilovolt transmission connection from the Alabama-Florida border to Pensacola. The project allowed the company to rely on imported electricity and placed the older Allis-Chalmers steam turbine-generator on standby, effectively ending the initial era of scattered local generation. Gulf Power expanded its customer base through the late 1920s and the postwar period. It inherited thousands of customers through the 1926 consolidations and added approximately 40,000 more after World War II. For many years, however, it continued to purchase much of its energy from outside the immediate service area. In 1945, the company began rebuilding its own generation capability by constructing a 22-megawatt unit at the Crist Steam Plant in Pensacola. This investment helped address supply pressures associated with wartime shortages and growing demand. Over the following decades, Gulf Power developed a mixed generation and delivery system. Its service territory eventually covered eight Florida Panhandle counties: Bay, Escambia, Holmes, Jackson, Okaloosa, Santa Rosa, Walton, and Washington. The company operated four power plants and held ownership interests in two others. Its reported generating capacity reached approximately 2.278 gigawatts, while its network included about 1,670 miles of transmission lines and 7,750 miles of distribution lines, around 1,940 miles of which were underground. The company's later history was shaped by environmental regulation and the transition away from older coal facilities. In 2014, Earthjustice sued Gulf Power under the Clean Water Act over alleged improper discharges of coal ash at Plant Scholz. Gulf Power retired two coal-fired units at Lansing Smith Generating Plant in March 2015. It closed Plant Scholz, an 80-megawatt coal station, in April 2015 after roughly sixty years of operation, with compliance costs under newer environmental rules cited as a factor. A subsequent settlement included cleanup and containment obligations. Gulf Power also pursued renewable generation. In 2010 it broke ground on a landfill-gas facility at Escambia County's Perdido Landfill. In 2017 it completed the Gulf Coast Solar Center, consisting of three solar farms developed with Coronal Energy on military-leased land. In 2020, it completed the 75-megawatt Blue Indigo Solar Energy Center near Jacob City, its first fully owned solar field. It also began planning or constructing the Blue Springs and Cotton Creek solar projects before the corporate merger. For most of its existence, Gulf Power was associated with Atlanta-based Southern Company. NextEra Energy announced its acquisition of the utility in 2018 and completed the transaction in January 2019. The next stage was integration with NextEra's Florida Power & Light subsidiary. Gulf Power was legally merged into FPL on January 1, 2021, though its business continued as a separate FPL unit through that year. By early 2022, the former Gulf Power service territory was administered as FPL's Northwest Division. Gulf Power consequently became a defunct standalone utility brand, while its assets, customers, and regional operations continued within Florida Power & Light.
- 2022
Former territory becomes FPL Northwest Division
[1]The former Gulf Power service territory was administered as Florida Power & Light's Northwest Division.
- 2021
Legal merger with Florida Power & Light
[1]Gulf Power was legally merged into Florida Power & Light and operated as a separate FPL unit during the transition.
- 2020
Blue Indigo Solar Energy Center completed
[1]Gulf Power completed its first fully owned solar field, a 75-megawatt facility near Jacob City.
- 2019
Acquired by NextEra Energy
[1]NextEra Energy completed its acquisition of Gulf Power from Southern Company.
- 2017
Gulf Coast Solar Center completed
[1]Three solar farms entered service through a partnership involving Gulf Power, Coronal Energy, and military land lessors.
- 2015
Coal generation reductions
[1]Gulf Power retired two Lansing Smith coal units and closed Plant Scholz amid changing environmental requirements and operating economics.
- 2010
Landfill-gas project begins
[1]Gulf Power broke ground on a landfill-gas generation facility at the Perdido Landfill in Escambia County.
- 1945
Crist Steam Plant expansion
[1]The company constructed a 22-megawatt generating unit at the Crist Steam Plant as it began expanding its own generation resources.
- 1926
Initial Northwest Florida consolidation
[1]Gulf Power acquired Chipley Light and Power Company and later absorbed Pensacola Electric Company, establishing an integrated operating utility.
- 1926
Post-hurricane system reconstruction
[1]After severe hurricane damage, Gulf Power and affiliated companies restored service and built a 110-kilovolt transmission connection into Pensacola.
Products and positioning
A regional regulated electric utility serving Northwest Florida, with operations spanning generation, transmission, distribution, and customer electricity service.
Electric utility service · 1925
Regulated electric service
Gulf Power's principal offering was regulated electricity service for households, businesses, industrial customers, and public facilities in eight counties of Florida's Panhandle. The company delivered power through a regional transmission and distribution network and maintained customer-facing utility operations until its legal merger into Florida Power & Light.
Power generation · 1945
Electric generation portfolio
The company operated a mixed generation portfolio that included coal, natural gas, landfill gas, and solar resources. Its generation strategy changed over time as older coal facilities were retired or closed and newer renewable projects were added. Plant Crist was converted from coal to natural gas in 2021 and renamed the Gulf Clean Energy Center.
Solar generation · 2017
Gulf Coast Solar Center
The Gulf Coast Solar Center comprised three solar farms completed in 2017. Gulf Power developed the projects with Coronal Energy on land leased from the United States military; Coronal Energy owned and operated the facilities. The project marked a significant expansion of renewable generation in Gulf Power's service territory.
Solar generation · 2020
Blue Indigo Solar Energy Center
Blue Indigo Solar Energy Center was a 75-megawatt solar facility near Jacob City, Florida. Completed in 2020, it was Gulf Power's first fully owned solar field and formed part of the company's shift toward utility-scale renewable generation.
Controversies
Brand decisions
2021
Legal merger into Florida Power & LightM&ABackground
After NextEra Energy acquired Gulf Power, the parent company moved to integrate the utility with its Florida Power & Light subsidiary.
Action taken
Gulf Power was legally merged into Florida Power & Light on January 1, 2021, while its former business continued as a separate FPL division during the year.
Aftermath
The Gulf Power corporate entity ceased to operate independently, and the former service territory became FPL's Northwest Division by early 2022.
2021
Conversion of Plant Crist to natural gasGeneration changeBackground
Gulf Power and its successor organization continued adjusting the generation fleet after the retirement of older coal assets.
Action taken
Plant Crist was converted from coal to natural gas and renamed the Gulf Clean Energy Center.
Aftermath
The conversion reduced the facility's reliance on coal and occurred during the transition of Gulf Power's assets into FPL.
2020
Completion of Blue Indigo Solar Energy CenterProduct launchBackground
Following earlier solar partnerships, Gulf Power expanded its directly owned renewable generation capacity.
Action taken
The company completed the 75-megawatt Blue Indigo Solar Energy Center near Jacob City.
Aftermath
Blue Indigo became Gulf Power's first fully owned solar field and was subsequently part of the FPL operating portfolio.
2018
Agreement to sell Gulf Power to NextEra EnergyM&ABackground
Southern Company announced the planned sale of Gulf Power as part of a transaction that would transfer the Florida utility to NextEra Energy.
Action taken
NextEra Energy announced its acquisition agreement, which was completed in January 2019.
Aftermath
Gulf Power joined the NextEra Energy group alongside Florida Power & Light and was later legally combined with FPL.
2017
Launch of Gulf Coast Solar CenterProduct launchBackground
Gulf Power sought to expand renewable generation in its service territory through utility-scale solar development.
Action taken
The company completed three solar farms in partnership with Coronal Energy on military-leased land.
Aftermath
The projects increased the renewable share of Gulf Power's energy supply and established a visible solar platform in Northwest Florida.
2015
Retirement of Lansing Smith coal unitsGeneration changeBackground
Gulf Power faced changing environmental requirements and evolving economics for coal-fired generation.
Action taken
The company decommissioned two coal-fired units at the Lansing Smith Generating Plant near Panama City.
Aftermath
The retirements reduced the role of coal in Gulf Power's generation fleet and preceded the closure of Plant Scholz later in 2015.
2015
Closure of Plant ScholzGeneration changeBackground
The 80-megawatt coal-fired plant had operated for approximately sixty years, but compliance with newer environmental regulations increased the cost of continued operation.
Action taken
Gulf Power closed Plant Scholz and subsequently agreed to cleanup and coal-ash containment measures.
Aftermath
The closure ended generation at the facility and became part of the company's broader transition away from older coal assets.
Recent events
Century votes to increase Gulf Power franchise fee[3]
The Century Town Council voted to raise the franchise fee charged to Gulf Power from 5% to 6%. Gulf Power said it passes the full cost of the fee on to customers; the increase was estimated to cost customers within Century town limits about $1.40 per month.
Sources3 sources
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