Duke Energy Florida seeks new base rates while cutting fuel rates, adding energy efficiency programs

Duke Energy Florida filed for new base rates with the Florida Public Service Commission (FPSC), announced plans for reductions under a fuel mid-course adjustment and sought authorization for new energy efficiency goals and programs.

On top of this, these moves would incorporate 14 new solar sites with 1,050 MW of additional energy for the company’s portfolio. That part would result in an average annual increase of approximately 4 percent between 2025 and 2027, meaning the average residential customer would see base rate jumps of about $16.48 in 2025, $2.73 in 2026 and $4.93 in 2027.

Despite this, Duke Energy added that customer bills should decrease overall in January 2025. That’s because the 2022 fuel under-recovery, storm restoration cost recovery and some legacy purchased power contracts will expire by the end of 2024, removing significant costs tacked onto customer bills. The company also hopes that investments into innovative technologies will yield greater efficiency and outage reduction that will pass savings onto customers as well.

“The proposed investments will decrease outages and shorten restoration times for customers and communities, while reducing emissions at a reasonable cost,” Melissa Seixas, Duke Energy Florida state president, said. “Duke Energy Florida remains committed to serving customers with more price stability and certainty.”

In terms of rate reduction, the company cited falling natural gas cost projections at the core of a plan for a new fuel and capacity rate request. That request would, if approved, lower a typical residential customer bill more than $5. While this wouldn’t go into effect unless FPSC approved the measure, the Duke Energy noted changes could conceivably be seen as soon as June 2024.

To date, the company added that it has passed approximately $56 million of corporate tax savings annually to customers as a result of the federal Inflation Reduction Act. Those changes have led to decreases of another $1.90 for the average customer’s bills.

While continuing existing low-income programs and residential and commercial energy efficiency and demand response programs, in its Florida Energy Efficiency and Conservation Act (FEECA) submission Duke Energy Florida also asked to create a new builder construction bundle. That bundle would allow multifamily measures to be bundled and builders to install energy efficiency measures while participating in incentives.