Florida PSC approves plans by Duke Energy, Tampa Electric to lower rates
This week, the Florida Public Service Commission approved two Florida energy companies—Duke Energy Florida and Tampa Electric—to lower their rates.
First, Duke Energy Florida got the go-ahead to lower its bills, stemming from lower-than-anticipated fuel charges. As a result, a typical residential customer using 1,000 kWh of energy will see their monthly bill reduced by $5.90, or almost 4 percent. That is in addition to the $11.29 monthly decrease, or about 6 percent, that went into effect in January.
Similarly, typical commercial and industrial customers will see their bill decrease, on average, between 3.5 percent and 7 percent, varying based on factors such as industry type and differences in customer use patterns.
The new rates will take effect beginning in June 2024.
“Today’s approvals are great news for Florida customers, especially as we get closer to our warmest months,” Melissa Seixas, Duke Energy Florida state president, said. “Duke Energy continues to look for ways to pass on savings to our customers while providing the reliable, increasingly clean power our customers and communities expect.”
Duke Energy Florida, a subsidiary of Duke Energy, owns 12,300 megawatts of energy capacity and supplies electricity to 2 million residential, commercial, and industrial customers across a 13,000-square-mile service area in Florida.
Tampa Electric also got approval to lower its rates. The ability for it to do so is also due to a continued decline in fuel prices.
Starting in June, Tampa Electric residential customers who use 1,000 kilowatt-hours of electricity a month will see a reduction to $136.44 a month, from the $143.48 they pay today. Further, commercial customers will see a reduction of between 4 percent to 11 percent, depending on usage.
Like Duke Energy, this is the second time this year that Tampa Electric has reduced rates. In January, the company decreased residential bills by nearly $18, also because of a decline in fuel prices and other factors. These reductions will save customers nearly $25 a month for the rest of the year, or $175.
Tampa Electric rates will remain among the lowest in Florida and are significantly below the national average.
“Tampa Electric is pleased to be in a position to reduce electricity bills again this year,” Archie Collins, president and CEO of Tampa Electric. “We are happy to provide customers with some welcome relief as the summer’s heat begins.”
The reason that there are two rate reductions is that utilities modify their fuel costs annually, typically in January. But they can adjust them at other times if costs change significantly. Natural gas prices have declined in the past year, and they have stayed low.
Natural gas and other fuels are used in power plants to make electricity, and the costs are passed to customers without markup or profit.
For Tampa Electric, the fuel charge makes up about one-quarter of a residential customer’s bill. Tampa Electric maximizes the use of existing low-cost, well-performing plants and power purchased from other companies to lower costs and pass the savings to customers. For example, the company’s use of solar power has saved customers more than $200 million since 2017.
Tampa Electric, a subsidiary of Emera Inc., serves about 840,000 customers in West Central Florida.
