FPL says customers to benefit from nearly $400M in federal tax savings

Florida Power & Light Company said it plans on refunding approximately 5.8 million customers nearly $400 million in savings resulting from the new federal tax law.

FPL said the savings are the results of a federal production tax credit (PTC) for the development of solar energy centers, which FPL continues to build throughout the state. Currently, FPL has 50 operational sites, part of the largest solar expansion in the country.

“We recognize that all Floridians are continuing to deal with the challenges of record-high inflation and increased costs of everyday goods and services,” FPL Chairman and CEO Eric Silagy said on Sept. 23. “As we continue working to operate even more efficiently to drive costs out of our business, federal tax savings will begin to provide some relief to customers next year as high natural gas prices continue to put upward pressure on bills.”

Solar energy centers that started serving FPL customers in 2022 are eligible for the PTCs. FPL said it would provide a one-time $25 million refund in January 2023, and then phase in nearly $360 million in additional tax savings through 2025.

The company said its 2022-2025 rate agreement includes a provision accounting for changes to federal tax law, facilitating the quick implementation of bill adjustments.

FPL said that as a result of the tax savings, a typical 1,000-kWh residential customer would have a bill of $126.65 in January 2023 – the lowest among Florida’s investor-owned utilities. The company said residents’ bills in Northwest Florida, which includes a temporary hurricane surcharge for past Northwest Florida storms, would be nearly $157. All of the bills will increase slightly in February, the company said, due to an approved base rate adjustment and higher than expected fuel costs in 2023.