State regulators approve FPL rate decrease in May

Rhea-AI Summary

On April 4, 2023, state regulators approved a decrease in Florida Power & Light Company's rates starting May, reflecting a projected $379 million reduction in fuel charges due to lower natural gas prices. The average residential customer's bill will drop by approximately 3% from May through December, while typical business customers will see a decrease of 3% to 4%. FPL emphasizes its commitment to customer savings amid rising costs and encourages energy efficiency practices. The company serves around 5.8 million accounts and is recognized for its reliable and clean energy generation.

Positive

• Rate decrease approved by state regulators amounting to $379 million due to lower natural gas prices.
• Residential customer bills will decrease by about 3% from May through December.
• Business customer bills will see a reduction of 3% to 4% based on rate class.
• FPL emphasizes its commitment to keeping customer bills low amidst inflation.

Negative

• None.

JUNO BEACH, Fla., April 4, 2023 /PRNewswire/ -- State regulators today unanimously approved a decrease to Florida Power & Light Company rates beginning in May to reflect projected fuel savings.

"Our customers count on us to keep bills as low as possible – that's especially important as we all deal with inflation and rising costs for food and rent and other basics," said Armando Pimentel, president and CEO of FPL. "As fuel prices have moderated, we are pleased to pass through the savings to customers. Importantly, we continue to encourage customers to use FPL's free tools to save energy and make their bill even lower."

FPL is reducing fuel charges – which are a direct passthrough from which the company does not profit -- by $379 million for the remainder of the year due to lower-than-expected natural gas prices. As a result of the Florida Public Service Commission's approval, the typical 1,000-kWh residential customer bill will fall by about 3% from May through December, as compared to current approved rates. Typical business customer bills will decrease 3% to 4%, depending on rate class.

FPL typical 1,000-kWh residential customer bill
FPL			FPL Northwest
Current	May 2023 (approved)		Current	May 2023 (approved)
$144.38	$139.95		$163.30	$158.86

Even before the May decrease, FPL bills in peninsular Florida were well below the national average and among the lowest of all of Florida's electric utilities.

FPL offers energy-saving tips to customers  
While bills will decrease in May, FPL encourages customers to take steps to lower their bills even more by monitoring energy use and making their homes more energy-efficient. For example:

• Cool your home at 78° or higher. Each degree you increase the temperature on your thermostat can reduce your bill by 5% a month for cooling costs.
• Clean the lint filter in your 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).
• Activate the free FPL Energy Manager tool to monitor how your home is using energy and identify ways to save.
• For more helpful tips, 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 significance of the Florida Power & Light rate decrease approved on April 4, 2023?

The rate decrease of $379 million reflects lower natural gas prices and will reduce residential and business customers' bills by approximately 3% to 4% starting in May.

How much will Florida Power & Light customers save with the new rates effective May 2023?

Residential customers can expect to save about 3%, and business customers will see reductions of 3% to 4% depending on their rate class.

How does the fuel charge reduction affect Florida Power & Light's financials?

The $379 million reduction in fuel charges is a direct passthrough from which FPL does not profit, ensuring that savings are passed on to customers.

When will Florida Power & Light's new rates take effect?

The new rates will take effect beginning in May 2023.

What initiatives does Florida Power & Light suggest for further energy savings?

FPL encourages customers to use energy-efficient practices such as cooling homes at 78 degrees or higher and using their mobile app to monitor energy usage.