FPL files plan to reduce customer fuel charges by $379 million

Rhea-AI Summary

Florida Power & Light Company announced a proposal to reduce customer fuel charges by $379 million, effective May, to mitigate bill increases related to hurricane restoration and high fuel costs. The plan aims to lower the typical residential bill by $4.43 monthly through December. This follows a previous proposal to cut charges by $1 billion in response to decreasing natural gas prices. FPL's commitment to energy independence has saved customers over $14 billion in costs and significantly reduced carbon emissions. In 2022, FPL's solar fleet avoided $375 million in fuel costs, emphasizing its shift towards clean energy.

Positive

• Reduction of customer fuel charges by $379 million to alleviate bill increases.
• Typical residential bill decrease of $4.43 a month from May to December.
• Previous $1 billion reduction in fuel charges due to lower natural gas prices.
• FPL's energy independence saving customers over $14 billion.
• Largest solar fleet in America, avoiding $375 million in fuel costs in 2022.

Negative

• Ongoing proposed bill increase of $1.3 billion to recover hurricane restoration costs.
• Additional $2.1 billion recovery from higher-than-projected natural gas costs in 2022.

JUNO BEACH, Fla., March 1, 2023 /PRNewswire/ -- Florida Power & Light Company today filed a plan to reduce customer fuel charges by $379 million beginning in May to partially offset proposed bill increases to pay for last year's two hurricane restorations and high fuel costs. 

The proposal filed with the Florida Public Service Commission would reduce the fuel charge on the typical 1,000-kWh residential customer bill by $4.43 a month, including taxes and fees, from May through December – reflecting a second downward revision in projected natural gas costs for 2023 after last year's high levels.  

"This is good news for customers," said Armando Pimentel, president and CEO of FPL. "We recognize that sharp inflation is impacting our customers and that every dollar counts which is why we are pleased to provide relief to customers as fuel prices have moderated." 

The PSC is considering proposals FPL submitted in January to increase customer bills in April to recover $1.3 billion in incremental restoration costs from Hurricanes Ian and Nicole and $2.1 billion to make up for higher-than-projected natural gas costs in 2022.  

To partially offset these proposed increases, FPL's January filing also called for decreasing projected 2023 fuel charges by $1 billion due to an expected drop in natural gas prices below original projections. Today's proposal to reduce fuel charges by $379 million is in addition to the earlier $1 billion proposed reduction.  

Energy independence generates customer savings 
Even with the increase in natural gas prices in recent years, natural gas remains far more cost-effective than fuel oil and coal to generate electricity. FPL's decision in the early 2000s to seek energy independence and modernize its generating fleet by moving away from foreign oil and constructing ultra fuel-efficient clean energy centers and leading America's largest solar expansion has saved customers more than $14 billion while dramatically reducing carbon emissions.

In fact, FPL's solar fleet – the largest in America – doesn't use fuel at all to generate electricity, avoiding about $375 million in fuel costs in 2022 alone. FPL brought 13 solar energy centers online so far this year and will add three more solar plants in 2023 as part of plans to install 90,000 megawatts of solar energy in Florida and massively expand battery storage over the next two decades.  

FPL offers energy-saving tips to customers  
With the bill increase proposed to take effect in April, FPL is encouraging customers to take steps now to lower their bills by monitoring energy use and making their homes more energy efficient. For example: 

• Depending on the season, customers should cool their home at 78° or warmer or heat their home at 68° or cooler. Each degree customers lower or increase the temperature on their thermostat can reduce their bill by 5% a month for heating or cooling costs.
  Customers can clean the lint filter in their dryer before each load to minimize drying time.
• Turn off ceiling fans and lights in unoccupied rooms.
• View daily, weekly and monthly energy use by using the FPL Mobile App, which is available on the Apple App store, Google Play or by texting "App" to MyFPL (69375).
• Customers can activate the free FPL Energy Manager tool to monitor how their home is using energy and identify ways to save.
• For more helpful tips, customers can visit FPL.com/waystosave.

Florida Power & Light Company    
As America's largest electric utility, Florida Power & Light Company serves more customers and sells more power than any other utility, providing clean, affordable, reliable electricity to approximately 5.8 million accounts, or more than 12 million people. FPL operates one of the cleanest power generation fleets in the U.S and in 2022 won the ReliabilityOne^® National Reliability Award for the seventh time in the last eight years. The company was also recognized in 2022 as one of the most trusted U.S. electric utilities by Escalent for the ninth consecutive year. FPL is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE), a clean energy company widely recognized for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity. NextEra Energy is ranked No. 1 in the electric and gas utilities industry in Fortune's 2022 list of "World's Most Admired Companies" and recognized on Fortune's 2021 list of companies that "Change the World." NextEra Energy is also the parent company of NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.   

 

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SOURCE Florida Power & Light Company

FAQ

What is the proposed reduction in fuel charges by Florida Power & Light (NEE)?

Florida Power & Light has proposed a $379 million reduction in customer fuel charges starting in May 2023.

How much will the typical residential customer's bill decrease due to the fuel charge reduction (NEE)?

The typical residential customer's bill will decrease by $4.43 a month from May to December 2023.

What is the impact of FPL's energy independence strategy on customer savings (NEE)?

FPL's energy independence strategy has saved customers over $14 billion while reducing carbon emissions.

What are the proposed bill increases related to hurricane restoration (NEE)?

FPL is proposing a $1.3 billion increase in customer bills to recover restoration costs from Hurricanes Ian and Nicole.