- Florida Power & Light Company (FPL) announced a second fuel reduction cost plans aimed at lowering customer bills because the price of natural gas in 2023 is lower than expected.
- The reduction in fuel costs could offset some of the higher rates that customers are likely to face from hurricane recovery costs and the 2022 increase in natural gas prices.
- Duke Energy announced a similar fuel reduction plan earlier this week.
- Three Florida utilities have both submitted new customer rate proposals to the Florida Public Service Commission, which will review them
The state’s largest utility company plans to lower customer fuel charges by $379 million through the end of the year thanks to the cost of natural gas coming in lower than expected in 2023. It’s the second time in two months that Florida Power & Light Company (FPL) has revised its fuel cost projections downward. The company says the new reduction is in addition to the already announced $1 billion reduction in customer fuel charges after energy costs rose dramatically in 2022.
For customers, the bill reductions will help offset a portion of the higher rates expected as a result of the cost of hurricane recovery and last year’s spike of natural gas prices on the world market. Those increases will likely show up in consumer bills starting in April. FPL’s rate reduction proposal has been submitted to the Florida Public Service Commission, which will review it alongside that of a similar plan announced yesterday by Duke Energy for the same reasons.
“This is good news for customers,” said Armando Pimentel, president and CEO of FPL. “We recognize that sharp inflation is impacting our customers and that every dollar counts which is why we are pleased to provide relief to customers as fuel prices have moderated.”
FPL and Duke and Tampa Electric Company (TECO) all filed plans to recover billions in costs from Hurricanes Ian and Nicole. FPL said the company’s cost of hurricane recovery operations totalled more than $1.3 billion, while the rising price of natural gas in 2022 added $2.1 billion in directly attributable energy generation costs.
Under Duke’s January filings, customers who use 1,000 kilowatt hours a month would have seen their bills go from the current $165.55 to $199.04. But with the reductions made on Monday, those bills will likely only rise to $190.56. The Public Service Commission is set to review the proposed increases for Duke, FPL, and Tampa Electric Co. on March 7.