Duke Energy Florida seeks response cost recovery for Hurricane Irma

Published on January 02, 2018 by Kevin Randolph

© Shutterstock

Duke Energy Florida filed a petition last week with the Florida Public Service Commission (FPSC) to recover from customers an estimated $381 million for costs associated with the company’s response to Hurricane Irma, which struck Florida in September.

The company is also seeking to recover $132 million to replenish its storm reserve fund. The company used the $62 million in its reserve fund as part of its Hurricane Irma response.

If the petition is approved, residential customers will see an increase of $5.20 per 1,000 kWh of electricity on a typical monthly bill over a three-year recovery period. Commercial and industrial customers’ bills would increase by approximately 2.5 to 6.6 percent.

Under the current settlement agreement, Duke Energy Florida can begin recovering both the storm impact and reserve replenishment 60 days after it filed the petition.

The FPSC will review the proposed initial storm cost recovery surcharge within 60 days.

The charge will take effect during the first billing cycle for March 2018 and will continue through February 2021 if approved. The FPSC will schedule a hearing process to review the final actual costs later in 2018 and adjust the billing rate if necessary.

“This past hurricane season impacted Florida significantly, from damaging homes and infrastructure to affecting agriculture and tourism,” Harry Sideris, Duke Energy Florida state president, said. “Duke Energy Florida understands the impact this filing has on both our residential and business customers. We will continue making smart investments to significantly enhance service reliability throughout the year, including during storm season.”