Duke Energy, consumer representatives and business groups have signed a comprehensive agreement to increase reliability, improve the clean energy vision for Florida and focus on ways to assist as well as pass on savings to customers.
The agreement will allow an increase in base rates, among other provisions, if approved by the Florida Public Service Commission (FPSC). The company expects overall customer bills to decrease in January 2025 as compared to January 2024.
The 2022 fuel under-recovery, storm restoration cost recovery and some legacy purchased power contracts will expire by year-end 2024. The removal of these costs will lower customer bills.
Duke Energy reduced rates twice in January and June 2024. Currently, residential customers pay approximately $17 per 1,000 kWh less as compared to 2023.
The base rate changes are estimated to result in an average annual 2% bill increase over the three-year period, if approved. This includes $203 million and $59 million in base rate increases in January of 2025 and 2026, respectively, as well as increases associated with 12 solar facilities as they begin operations, estimated at $12 million, $71 million and $58 million in 2025, 2026 and 2027, respectively.
Duke Energy Florida expects a typical residential customer using 1,000 kWh to experience a decrease of $8.26 in their January 2025 bill, a 5% decrease as compared to December 2024, based on current projections.
The proposed 2025-2027 agreement include:
· Continued grid modernization to serve increased population growth through improved reliability, resulting in fewer outages and shorter restoration times.
· Ongoing power plant enhancements and efficiencies to allow them to produce more power with the same amount of fuel – generating savings for customers.
· Building 12 new solar plants between 2025 and 2027, adding another 900 MW of clean energy to Florida’s grid.
· Continued investments in innovative renewable energy technologies such as utility-scale battery storage to meet growing energy needs, improve reliability and build a stronger, smarter energy grid.
The agreement also provides flexibility for Florida’s most exposed customers during times of need and extreme weather events, including suspending disconnects for nonpayment of Duke Energy Florida bills when temperatures reach 95 degrees or greater. The company will also work to increase participation in its Neighborhood Energy Saver program by 10% and to increase the installation of smart thermostats from 10% to 40% for income-qualified customers.
Duke Energy Florida developed the agreement collaboratively with customer representatives of several consumer groups, including the state’s Office of Public Counsel, Florida Industrial Power Users Group, PCS Phosphate Company, Nucor Corporation and Florida Retail Federation. The agreement, filed on July 15, 2024, is subject to approval by the FPSC.
