Duke Energy Florida to pass along tax savings to customers

by | Oct 17, 2022

 

  • Duke Energy Florida files to refund customers $56 million annually in federal corporate tax savings
  • If approved, residential rates will decrease $1.90 per 1,000 kilowatt-hours in January as compared to recently announced rates
  • Florida Power & Light announced a similar plan last month to refund its approximately 5.8 million customers nearly $400 million in savings resulting from the new federal tax law

Duke Energy Florida is proposing to pass on $56 million dollars of corporate tax savings annually to customers.

“We understand our customers need some relief, and this is an opportunity for Duke Energy to pass tax savings to our customers,” said Duke Energy Florida State President Melissa Seixas. “We will continue to look for creative solutions to provide relief and focus our efforts to deliver the best possible service.”

It stems from a federal law, known as the Inflation Reduction Act, that President Joe Biden signed in August. The law extended renewable-energy tax credits, a change that benefited utilities which have moved heavily into solar power.

Duke Energy Florida proposes to adjust base rates starting with the first billing cycle of January 2023.

Florida Power & Light (FPL), the largest utility company in the state, announced a similar plan back in September.

FPL asked state regulators last month to approve the plan that would pass along an estimated $384.1 million in savings to customers over the next three years.

The plan, which would start with a $25 million refund to customers in January, would trim rate increases that FPL customers will face in 2023.

“We recognize that all Floridians are continuing to deal with the challenges of record-high inflation and increased costs of everyday goods and services,” FPL Chairman and CEO Eric Silagy said last month. “As we continue working to operate even more efficiently to drive costs out of our business, federal tax savings will begin to provide some relief to customers next year as high natural gas prices continue to put upward pressure on bills.”

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