Duke Energy Florida files proposed adjustments to fuel, capacity rates

On Monday, Duke Energy Florida announced it had filed its proposed fuel and capacity rates and storm restoration costs with the Florida Public Service Commission (FPSC).

In response to increases in natural gas prices and supply uncertainty, as well as recovery expenses due to multiple hurricanes and tropical storms, the utility company filed a plan to recover some of those costs. The proposed plan must be approved by the FPSC before Duke can increase customer bills.

Duke is requesting the recovery of approximately $795 million in net fuel costs, which takes into account higher than anticipated natural gas costs in 2022 of $1.18 billion, minus $385 million in lower than anticipated natural gas costs in 2023.

The request also includes $442.1 million in storm-related restoration costs associated with Hurricanes Ian, Nicole, Elsa, Eta Isaias, and Tropical Storm Fred, the company said, as well as rebuilding storm reserves for the future. Not only did the company incur costs to restore power quickly and safely, but also to prepare for future events.

If approved, the changes will take effect in April and result in about a 20 percent increase in monthly bills, an estimated $33.49 for the typical 1,000kWh residential customer. Commercial and industrial customers will see increases ranging from 19 to 37 percent.

Duke said it was continuing to find ways to cut costs through rate mitigation plans to spread the recovery of unrecovered fuel costs over longer periods, diverse fuel mixes, including solar power, and managing resources cost-effectively. The company said its commitment to solar investments has meant a decrease of $1.90 per 1,000 kilowatt-hours starting in January 2023.