Since the 1970s, Gulf Power has established a proven track record with its customers of delivering innovative customer-focused energy conservation programs. In the late 1980s, Gulf Power initiated conversation with the Florida Public Service Commission (FPSC) about a then-radical approach to pricing electricity for residential customers. The premise was that offering a variable pricing rate in the residential market would result in peak load savings, better utilization of existing generation, and an improvement in customer satisfaction. In 1990, the FPSC gave its approval to Gulf Power to conduct a two-year pilot program that launched in September 1991. Gulf Power conducted extensive analysis on the impact of variable pricing on load shapes, energy usage, and consumer behavior. The bottom line was that the pilot did indeed prove the viability of variable pricing in the residential market — and consumers really liked it.