The Florida Public Service Commission (PSC) today reduced Florida Power & Light Company’s (FPL) and Duke Energy Florida, LLC’s (DEF) 2016 fuel and capacity cost recovery factors, lowering customer bills in April.
FPL requested PSC approval to reduce customer rates to reflect lower projected natural gas prices and to coincide with the in-service date of its new Port Everglades Next Generation Clean Energy Center next month. The approved adjustments save customers $1.65 a month on a 1,000-kilowatt hour (kWh) residential bill compared to current rates.
DEF’s fuel cost reduction is also primarily due to lower projected natural gas prices. Residential bills will decrease by $5.83 per month, from current rates, beginning in April for a 1,000 kWh monthly electric bill.
The fuel and capacity cost component of customers’ bills is set for each calendar year, but mid-course corrections are used when a utility’s costs increase or decrease significantly in the interim. Under Commission rules, a utility must notify the PSC when it expects an under- or over-recovery greater than 10 percent, although lesser mid-course corrections are allowed.
FPL’s and DEF’s current fuel factors were set by the PSC during the November 2015 cost recovery clause hearing.
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