Joining a growing list of U.S.-based companies announcing employee bonuses, lower prices or customer rebates due to federal tax reforms, Florida Power & Light today announced they would apply their tax savings windfall toward offsetting costs that were previously scheduled to be paid by customers. With the completion of Hurricane Matthew recovery, FP&L also said that their typical 1,000-kWh customer can expect to see utility bills that are nearly 30 percent below the latest national average, dropping about $3.35 per month starting March 1st.
“The timing of federal tax reform, coming on the heels of the most expensive hurricane in Florida history, created an unusual and unprecedented opportunity,”said Eric Silagy, president and CEO of FP&L. “We believe the plan we’ve outlined is the fastest way to begin passing tax savings along to our customers and the most appropriate approach to keeping rates low and stable for years to come.”
The company also said that tax savings in future years may enable FPL to continue the current rate agreement and avoid a general base rate increase for the company’s 4.9 million customers, potentially through the end of 2022.
“Our current rate agreement provides the ability to use federal tax savings to entirely offset Hurricane Irma restoration costs, which delivers an immediate benefit to customers, and also the potential opportunity to avoid a general base rate increase for up to an additional two years,” Silagy said.
According to the release, economic conditions have led to the prices of almost all products and services rising in recent years, but FPL’s typical residential customer bill is lower today than it was more than 10 years ago.
Since January 1st, the company has announced the opening of four new solar plants across the state that are now supplying power customers, and the closure of a coal plant in Jacksonville.