- Ongoing reductions in natural gas pricing has reduced costs for Florida Power & Light electricity generation, which the company is passing along to consumers.
- The new cuts will total more than a quarter of a million dollars, which follows an even larger rate cut last month.
- Other power companies have also cut rates with approval by the Public Service Commission (PSC) which regulates the state’s electric companies.
Florida Power & Light Company (FPL) received unanimous approval from state regulators today to reduce its rates starting July, reflecting the ongoing decrease in fuel prices.
Armando Pimentel, FPL’s CEO and President, emphasized the company’s commitment to maintaining affordable rates.
“As fuel costs continue to moderate, we’re thrilled to extend these additional savings to our customers,” Pimentel said. “We also recommend customers take advantage of FPL’s no-cost energy-saving tools to further reduce their bills.”
The Florida Public Service Commission has sanctioned a $256 million cut in fuel expenses, following the $379 million decrease enacted in May.
The green light given today signifies that an average residential customer, using 1,000-kWh, will see their bill drop by over $8 in July compared to April. For residents in Northwest Florida, the July bill for a 1,000-kWh usage will be less than the previous year. Furthermore, commercial customers can expect a decrease in their July bills between 2% and 5% depending on their rate classification compared to existing rates.
The Florida Public Service Commission approves the fuel charges on customer bills based on FPL’s forecasted fuel costs for its power plants. The company makes no profits from fuel and focuses on fuel-efficient operations.
FPL had anticipated its fuel costs for 2023 in the previous year. However, due to the decrease in natural gas prices, the company has already implemented reductions, first in April and then in May, amounting to almost $1.4 billion in fuel charges for 2023. The reduction approved for July will be the third such adjustment in 2023, contributing further to lowering the fuel part of FPL’s bills.
Duke Energy and other electric utilities have also made rate reductions this year.
If FPL would cease its pursuit to be the global leader in solar by 2030 (from their website), they could save clients a lot more money. Also the lines should have been buried in FL after the 2004/2005 hurricanes as was demanded by customers at the time. While that is an expensive proposal, they would be well on their way to completion if they had directed monies spent on solar fields toward burying lines.