Duke Energy Florida says customers will not see rate increase for Hurricane Irma response
Duke Energy Florida recently announced that its customers’ would not see a rate increase for power restoration costs associated with the response to Hurricane Irma and that the company would instead apply federal tax reform savings toward those costs.
On Dec. 28, 2017, the company filed for recovery of $513 million, which consisted of $381 million for power restoration costs and $132 million to replenish the storm reserve fund.
This cost recovery would have led to an increase of $5.20 per 1,000 kilowatt-hour (kWh) of electricity on a typical monthly bill over a three-year recovery period for an average total cost of $187.20. Commercial and industrial customers would have seen an increase of approximately 2.5 to 6.6 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.”
The Florida Public Service Commission will review the costs to be recovered and the level of the tax benefit and make a decision on the change by the end of the year.
