Duke Energy Florida provides financial assistance as fuel and storm cost filings impact 2023 rates

Rhea-AI Summary

Duke Energy Florida has proposed adjustments to fuel and capacity rates, seeking recovery of approximately $795 million in fuel costs and $442.1 million for storm restoration, primarily due to Hurricanes Ian and Nicole. The proposal comes amid rising natural gas prices and aims to insulate customers from volatility. If approved by the Florida Public Service Commission, residential bills will increase by about $33.49, resulting in a 20% uptick starting April 2023. Despite these increases, Duke Energy emphasizes customer support through assistance programs and tax savings from solar investments. The company aims for increased solar power generation, targeting a total of 1,500 megawatts by 2024.

Positive

• Seeking $795 million recovery for fuel costs and $442.1 million for storm restoration, facilitating financial stability.
• Planned increase of 1,500 megawatts of solar capacity by 2024, indicating commitment to sustainable energy.
• Approximately $56 million in annual tax savings passed to customers from the Inflation Reduction Act.

Negative

• Proposed rate increase of approximately 20% for residential customers due to rising fuel costs.
• Actual under-recovery of $1.18 billion in fuel costs in 2022, indicating financial pressure.

• Company continues to offer customer assistance, extended payment plans and cost-saving tools

ST. PETERSBURG, Fla., Jan. 23, 2023 /PRNewswire/ -- Duke Energy Florida today proposed adjustments to its fuel and capacity rates, and recovery of storm restoration costs with the Florida Public Service Commission (FPSC).

"We're here to help. We understand customers continue to face increased financial pressures due to inflation and other economic stress," said Melissa Seixas, Duke Energy Florida state president. "We are connecting customers to available assistance and providing energy-saving tools and programs to help manage their bills and lessen the impact."

During 2021 and 2022, a number of unique events drove up natural gas prices and caused supply uncertainty which affected not only utility companies but a variety of other industries that rely on natural gas as well.

Although Duke Energy Florida continues adding solar power to its system—it will have 1,500 megawatts of solar online by 2024—the company uses natural gas as its main fuel source to generate reliable electricity across the state of Florida.

The company does not profit from these increased fuel costs, and proactively takes measures to insulate customers from volatility.

Duke Energy Florida is requesting the recovery of approximately $795 million in net fuel costs, and approximately $442.1 million for storm restoration work, mostly associated with Hurricanes Ian and Nicole.

The $795 million net fuel recovery includes the company's actual 2022 under-recovery of approximately $1.18 billion, less an approximate $385 million decrease in 2023 costs, primarily due to lower projected natural gas prices. The 2022 under-recovery is a result of actual costs in 2022 being higher than the costs customers were paying in 2022. 

The $442.1 million of storm-related restoration costs are associated with Hurricanes Ian, Nicole, Elsa, Eta, Isaias, and Tropical Storm Fred as well as rebuilding our storm reserve for future storms. The company incurred costs to secure the necessary resources to quickly and safely prepare, respond and restore power. 

If approved by the FPSC, the changes will be effective in April 2023. The monthly bill impact to a typical residential customer using 1,000 kWh will increase $33.49 or about 20% beginning in April.

Commercial and industrial customers will see bill impacts ranging from a 19% to 37% increase.

Creative solutions to cut costs

DEF works hard to provide the best possible price for our customers. These steps include the previous implementation of an innovative rate mitigation plan to spread the recovery of unrecovered fuel costs over a longer period, delivering a diverse fuel mix, including solar for power generation, and managing fuel and generation resources in the most cost-effective manner for our customers.

As a result of the company's continued commitment to solar investments, Duke Energy Florida is already passing approximately $56 million of corporate tax savings annually to customers from the Inflation Reduction Act. For residential customers this resulted in a decrease of $1.90 per 1,000 kilowatt-hours beginning in January 2023. Additionally, the company is refunding customers another $11.7 million in tax savings from 2022 solar generation.

Duke Energy Florida will continue to look for creative solutions to provide rate relief and focus our efforts to deliver the best possible service for our customers.

Manage your energy usage and billing

Duke Energy continues to support customers, connect them with available assistance, and offer tools and programs – including flexible payment plans – to help manage electric bills.

Budget Billing 

Duke Energy's Budget Billing option lets customers pay one predictable amount every month to better manage their budget. The amount is periodically reviewed and adjusted. Learn more about Budget Billing here.

Pick Your Due Date

With Pick Your Due Date, customers can choose the date they want their Duke Energy bill to be due each month. Pick Your Due Date can give customers even more control over their energy bills. Learn more.

Track, manage your energy usage

Energy use can spike during the winter since heating is one of the biggest energy users in your home. Customers can easily track and adjust their usage when temperatures are highest.

• Smart meters provide customers with daily and hourly usage information to help them better understand their energy use and take steps to save energy and money. Video here.
• Duke Energy customers with smart meters also receive usage alerts through email and/or text halfway through their billing cycle, well before their bill arrives, with their current usage amount and a projection of what their final monthly bill could be.
• Customers can also set budget alerts, so they know when their bill reaches a specific dollar amount of their choosing, allowing them to adjust their usage and help save money on their bill.

New rates and other benefits

We offer a host of new ways to help you reduce energy costs including reduced fees and flexible rates. Click here to learn more: www.duke-energy.com/home/billing/rates/new-rates-florida

Home Energy Check

Find ways to reduce your home's energy use, learn how to lower your bill and see if you qualify for rebates and free energy-saving products: www.duke-energy.com/home/products/home-energy-check

Business Energy Check

Learn how to lower your bill, sign up for a free business energy assessment and get valuable Smart $aver® incentives. Learn more here: www.duke-energy.com/business/products/business-energy-check

EnergyWise® Home

EnergyWise Home is an easy way you can help reduce energy use during periods of high demand. Plus, you'll save on your electric bill by getting up to $141 in annual bill credits. By participating, you'll help preserve natural resources, delay the need for more power plants and keep energy costs lower for everyone. Enroll at www.duke-energy.com/home/products/energywise-home.

Other energy-saving programs, tips and guidance to help you manage higher energy bills that can result from increased energy are available at duke-energy.com/Winter.

Assistance agency funds

Some customers may also qualify for assistance from various government and nonprofit programs for utility bills and other household expenses. 211.org is a free service to help customers find local community agencies that can help meet a wide range of needs, including utility bills, housing, food and other essentials, child and elder care, medical expenses and health counseling. To learn about agencies that serve your area, dial 211, visit 211.org online or text your ZIP code to 898211 for information on where to get help.

In addition, Duke Energy Florida customers can learn more about how community agencies can help by visiting our website. Resources are also available here for small business customers, from financial assistance to billing and payment options to professional guidance to manage their energy usage. 

LIHEAP

This income-based program allows those earning below certain thresholds to qualify for federal energy bill assistance money through the Low-Income Home Energy Assistance Program (LIHEAP). The qualifying income thresholds are based on factors that include household income and the number of people living in a home. To learn how to qualify and apply for LIHEAP funds, visit Low-Income Home Energy Assistance Program (LIHEAP).

Installment plans

Installment plans give customers more flexibility to pay a past-due balance over a longer period. Customers can request a few extra days or restructure the past-due balance into a monthly payment plan. Customers should contact Duke Energy to discuss options available to them: 800.700.8744.

Duke Energy Florida

Duke Energy Florida, a subsidiary of Duke Energy, owns 10,300 megawatts of energy capacity, supplying electricity to 1.9 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida.

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 28,000 people.

Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company has interim carbon emission targets of at least 50% reduction from electric generation by 2030, 50% for Scope 2 and certain Scope 3 upstream and downstream emissions by 2035, and 80% from electric generation by 2040. In addition, the company is investing in major electric grid enhancements and energy storage, and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear. 

Duke Energy was named to Fortune's 2022 "World's Most Admired Companies" list and Forbes' "World's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Media contact: Ana Gibbs
Media line: 800.559.3853

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SOURCE Duke Energy

FAQ

What are the new rate adjustments proposed by Duke Energy Florida?

Duke Energy Florida proposed adjustments for fuel and capacity rates, seeking recovery of $795 million in fuel costs and $442.1 million for storm restoration costs.

When will the new rates from Duke Energy Florida take effect?

If approved, the new rates will take effect in April 2023.

How much will residential bills increase due to Duke Energy Florida's proposed rate changes?

Residential bills are expected to increase by approximately $33.49, which is about 20% starting in April 2023.

What is Duke Energy Florida's plan for solar energy?

Duke Energy Florida plans to have 1,500 megawatts of solar power online by 2024 as part of its commitment to renewable energy.

What assistance is Duke Energy Florida providing to its customers?

Duke Energy Florida is offering customer assistance, extended payment plans, and energy-saving tools to help manage bills amid financial pressures.