Florida PSC Votes to Reduce Storm Costs for Duke Energy Florida and Tampa Electric Company Customers

The Florida Public Service Commission (PSC) voted Tuesday to approve settlement agreements for Duke Energy Florida, LLC (DEF) and Tampa Electric Company (TECO) to lower costs to restore electric service caused by damage from recent storms.

Under the agreements, DEF and TECO customer bills will not increase due to storm restoration.

In addition to lowering storm restoration costs, the agreements establish standardized processes for future storm restoration activities. The Office of Public Counsel, the Florida Industrial Power Users Group and the Florida Retail Federation signed both agreements. White Springs Agricultural Chemicals also signed the DEF agreement.

DEF will use $484 million in savings from the 2017 Tax Cuts and Jobs Act (TCJA) to cover restoration costs for Hurricanes Irma and Nate and replenish its hurricane reserve fund.

TECO will use $91 million in TCJA savings to cover restoration costs for Tropical Storms Erika and Colin and Hurricanes Hermine, Matthew and Irma. TECO customers will receive a one-time refund totaling $11.5 million, the balance remaining after all storm costs were paid. The average residential customer, who uses 1,000 kilowatt-hours a month, will receive a refund of approximately $8, which will appear as a separate line item on their January bills.

“These agreements are in the public interest because they reduce storm cost recovery for customers and implement processes and procedures that will continue to benefit customers,” PSC Chairman Art Graham said. “Using TCJA savings is an effective solution to handle restoration costs associated with several recent named storms that caused widespread damage and power outages.”

The storm restoration processes and procedures approved today include established billing commitments with outside companies contracted to assist with storm response, limits on compensation for travel time and meal reimbursements and a requirement to track work crews using GPS. The agreement requires that any exceptions to these policies be documented and justified by the utilities.