Florida Public Service Commission fast tracks rate reductions for four state utilities

The Florida Public Service Commission (PSC) fast-tracked the approval of electric bill reductions for customers of four state utilities. The reductions should provide a measure of relief from the hardships caused by the COVID-19 pandemic.

“With electric utilities experiencing lower fuel costs, it is the right time to accelerate these savings as bill reductions to help customers experiencing financial hardships as a result of COVID-19,” PSC Chairman Gary Clark. “Together, we are navigating this unprecedented time, and I am pleased with all of Florida’s investor-owned utilities’ actions to assist customers and ensure reliable service continues.”

The commission approved one-time bill reductions in May for Florida Power & Light Company (FPL), Duke Energy Florida, and Gulf Power Company. The fourth company. Tampa Electric Company (TECO), got approval for its proposal to pass fuel-cost savings to customers from June through August, with smaller monthly savings through December. In all cases, the rate reductions are mainly due to lower projected natural gas prices.

Based on a monthly usage of 1,000 kilowatt hours (kWh), the average FPL customer’s bill will be $73.36 for May, a decrease of $23.07. The average Duke Energy Florida customer’s bill for May will be $102.90, a drop of $26.84, while the average Gulf Power customer’s bill will be $84.04, which is $56.39 less.

For TECO, the average residential bill for June through August will be $78.82, a decrease of $23.37. The averages bill for September through December will be $97.69, a $4.50 reduction from the current $102.19 monthly bill.

Typically, these rates are set at the beginning of the year, but mid-course corrections are done when a utility’s costs increase or decrease significantly in the interim.

At FPL, the typical monthly residential customer bill is already among the lowest in the state. This drop is on top of a nearly 4 percent decrease in January.

“In quickly coming together to thoroughly review and approve this plan, our regulators, once again, demonstrated their continued commitment to watching out for customers’ best interests by returning savings to them as quickly as possible,” FPL President and CEO Eric Silagy said. “Traditionally, these types of savings are spread out over the balance of the year. However, challenging times call for exceptional measures. I believe this one-time bill decrease is the most effective way to infuse customers with much-needed money as we all navigate through this difficult and unsettling time together.”

At Gulf Power, the decrease is 40% for the typical residential customer and 40 percent to 55 percent for the business customer.

“We are pleased that the Florida Public Service Commission has approved our request to deliver this savings to our customers when they need it most. We felt that this was the right thing to do, especially during times like these,” Gulf Power President Marlene Santos said. “Our customers and communities now more than ever count on the reliable and affordable energy we deliver, and we are pleased that May bills will reflect this additional, significant savings for our customers.”