Duke Energy Florida proposes plan to offset costs associated with hurricanes, rising fuel prices

by | Jan 23, 2023



  • Duke Energy Florida submitted proposed adjustments to the Florida Public Service Commission (FPSC) to recover storm restoration and fuel costs.
  • In a news release, the company noted that the monthly bill impact to a typical residential customer using 1,000 kWh is expected to increase $33.49 or about 20% beginning in April.
  • Commercial and industrial customers will see bill impacts ranging from a 19% to 37% increase.
  • Duke Energy Florida added that it will continue to look for solutions to provide rate relief and reliability to its customers.

Duke Energy Florida is proposing adjustments to its fuel and capacity rates to recoup costs from an active hurricane season and higher-than-expected natural gas prices.

Duke Energy announced it issued the proposal to the Florida Public Service Commission (FPSC) on Monday as a result of a “number of unique events” between 2021 and 2022 that drove up natural gas prices and caused supply uncertainty.

Despite Duke Energy’s continued commitment to solar investments, the utility company still relies on natural gas as its main fuel sources to generate reliable electricity across Florida.

“We’re here to help. We understand customers continue to face increased financial pressures due to inflation and other economic stress,” said Melissa Seixas, Duke Energy Florida state president. “We are connecting customers to available assistance and providing energy-saving tools and programs to help manage their bills and lessen the impact.”

In total, Duke Energy is requesting the recovery of approximately $795 million in net fuel costs, and approximately $442.1 million for storm restoration work, mostly associated with Hurricanes Ian and Nicole.

According to the proposal, the $795 million net fuel recovery includes the company’s actual 2022 under-recovery of approximately $1.18 billion — less an approximate $385 million decrease in 2023 costs, primarily due to lower projected natural gas prices. Duke Energy says the 2022 under-recovery is a result of actual costs in 2022 being higher than the costs customers were paying in 2022.

Additionally, the $442.1 million of storm-related restoration costs come from Hurricanes Ian, Nicole, Elsa, Eta, Isaias, and Tropical Storm Fred as well as Duke Energy’s storm reserve rebuilding plan. The company added it incurred costs securing resources to quickly and safely prepare, respond and restore power to its customers.

Hurricane Ian, a Category 4 storm, made landfall on Sept. 28, pummeling Florida’s Gulf Coast with sustained winds of 155 mph before cutting across toward the east coast. The storm left a path of destruction across the Sunshine State, producing catastrophic flooding and deadly storm surge.

Category 1 Hurricane Nicole made landfall Nov. 10 near Vero Beach, battering areas on the East Coast.

If approved by the FPSC, the changes will take effect in April.

4 Comments

  1. Germansmith

    Solar is becoming more attractive every day.
    I better get going before the Republicans in Tallahassee implement any more laws to protect the power companies profits

    • gennio

      How about democrats instead sending Ukraine this qarter occasional 100 billions send them 99 and cover that bill?

  2. Germansmith

    Farmers buy insurance to protect themselves from catastrophes, so do most other businesses. Including insurance companies who buy stop-loss policies to mitigates their losses So should power companies?
    Why should we subsidize their losses when we do not take advantage when they make huge profits?
    The fact that they are a “natural monopoly” should also means they should be regulated by the state instead of the rubber-stamp from the politically dependent and heavily lobbied Florida Public Service Commission

  3. Bruce S

    A truly amazing headline to bury the lede of 20+% billing increases. I hope you get your sweet check from Big Power simply in gratitude for your incredible headline.

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