Florida PSC approves storm protection plan cost recoveries for Duke Energy, FPL/Gulf

Settlement agreements covering both Duke Energy Florida, LLC’s (DEF) and joint Florida Power & Light Company-Gulf Power Company’s storm protection plan cost recoveries were approved this week by the Florida Public Service Commission (PSC).

In Duke’s case, the news followed a previously approved agreement between parties to accept activities outlined in the storm protection plan and specifications of the types of costs to be recovered through a storm protection cost recovery clause. After prior opposition from Walmart, Duke will now be able to move forward on the planned recovery of certain incremental costs under that clause.

Duke had requested recovery of nearly $10 million through the recovery clause in 2021, with an estimated monthly residential rate impact of $0.31, based on 1,000 kW hours of usage. This will affect around 1.8 million customers.

“The public interest is at the forefront of our decisions when parties negotiate outcomes, making sure they benefit everyone involved,” PSC Chairman Gary Clark said. “The Agreements for DEF are in the public interest because the company still must prove the prudence of the costs identified for its storm protection plan.”

Meanwhile, FPL and Gulf received similar treatments, although their first agreement was reached in August. As a result of the latest settlement, in 2021, FPL residential customers will see a bill impact of $0.42 based on 1,000 kW hours, while Gulf residential customers will experience a $0.37 bill impact, based on the same kW hours.

This will affect FPL’s nearly 5 million customers in Florida, along with Gulf’s approximately 463,000.