Duke Energy says it will not increase rates following hurricane damage due to federal tax revisions

Tying a decision not to increase rates on their customers in the wake of Hurricane Irma to a new federal tax law, Duke Energy said it will apply federal tax reform savings to cover $513 million in storm costs.

Before the reform was put into place, Duke had filed to recoup $381 million for power restoration costs and $132 million for its storm reserve fund. Residential customers would have been hit with increases of $5.20 per 1,000 kWH of electricity over the next three years–an average of $187.20 per month. Commercial and industrial customers likewise would have had their rates hiked by 2.5 percent.

“We are pleased that this solution will prevent a rate increase for our customers,” Harry Sideris, Duke Energy Florida state president, said. “Hurricane Irma was the worst storm to ever hit Duke Energy Florida and impacted many lives. Redirecting the tax reform savings against the storm costs ensures that our customers will reap the benefits of this new law.”

Thus, residential customers–a significant number, given that Duke Energy Florida oversees approximately 1.8 million customers–will save on average $187 per month, under this new plan supported by the Office of Public Counsel and numerous consumer advocate groups. The Florida Public Service Commission must still review and decide on the plan by year’s end.