Duke Energy Florida files plan with Florida PSC to invest in grid modernization, clean energy

Duke Energy Florida (DEF) filed a proposal with the Florida Public Service Commission (FPSC) to modernize the grid, advance clean energy, and set new rates for the next three years.

The agreement includes roughly $5 billion in investments over the next three years to modernize the electric grid, improve reliability, offer new electric vehicle charging station programs, and support pilot programs for technology such as microgrids and floating solar pilot projects. It also seeks to retire coal plants faster, pushing up the dates to retire the last two coal units eight years ahead of schedule, from 2042 to 2034.

If approved, the plan will take effect in January 2022. Base rates will increase by $67.2 million in 2022, and by another $48.9 million in 2023, and another $79.2 million in 2024, for a cumulative rate increase of $195.4 million. As a result, Duke Energy Florida’s average residential customers will see a bill increase of 3 percent to 4 percent in 2022. Nonresidential customers’ bills will increase by 1 percent to 6.5 percent in 2022, depending on consumption.

In 2023 and 2024, all customers will see their bill increase approximately 1 percent to 2 percent each year.

The agreement was developed with customer representatives of several consumer groups, including the state’s Office of Public Counsel, the Florida Industrial Power Users Group, Nucor Steel Florida, Inc., and White Springs Agricultural Chemicals and its subsidiary PCS Phosphate.

“This agreement provides a path to minimize bill increases while continuing to make smart investments that will offer customers greater reliability, cleaner energy alternatives, and innovative technology,” Catherine Stempien, Duke Energy Florida state president, said. “During these challenging times, it also provides rate certainty and clarity for Florida customers and communities regarding future adjustments.”

Duke Energy Florida has asked FPSC to hold a hearing on it. It hopes to have a decision by the second quarter of 2021. Duke Energy Florida, a Duke Energy subsidiary, serves about 1.8 million customers in Florida.