The Florida Public Service Commission (PSC) today approved a fuel factor increase for Tampa Electric Company (TECO) and Duke Energy Florida, LLC (DEF) customers resulting mainly from unexpected natural gas price increases attributed to increased demand, and reduced production and storage.
“Natural gas prices have increased since TECO and DEF submitted their 2021 fuel cost projections to the Commission, creating a cost under-recovery for both utilities,” said PSC Chairman Gary Clark. “Utilities do not earn a profit on fuel charges, and the PSC will continue to ensure utilities have done everything possible to keep fuel costs reasonable, while maintaining a reliable fuel supply.”
As a result of today’s approval, TECO residential customer’s monthly 1,000-kilowatt hour (kWh) bill for September through December 2021 will be $118.07, an increase of $12.82 over the current bill of $105.25.
Duke residential customer’s monthly 1,000-kWh bill for September through December 2021 will be $132.24, an increase of $4.28 over the current bill of $127.96.
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.
Current fuel factors for Florida’s investor-owned utilities were set by the PSC during the November 2020 annual cost recovery clause hearing.
TECO serves nearly 800,000 customers in West Central Florida. DEF serves more than 1.9 million retail customers in Florida.
For additional information, visit www.floridapsc.com.
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