The Florida Public Service Commission (PSC) today approved a plan by Duke Energy Florida, LLC (DEF) to mitigate the impact of the utility’s $246.8 million fuel cost under-recovery for 2021 that would otherwise be collected from customers entirely in 2022.
“We determined Duke’s plan to reduce the impact on 2022 customer bills to be in the public interest, giving customers some slight rate relief,” said PSC Chairman Gary Clark. “This rate mitigation agreement helps DEF cope with rising natural gas costs, and also keep customer bills down.”
Working with several stakeholder groups, DEF’s plan will:
• spread recovery of its $246.8 million fuel cost under-recovery over 2022 and 2023.
• forego collection of the storm surcharge associated with Hurricanes Eta and Isaias.
• forego recovery costs for Hurricane Elsa through the storm surcharge and will instead charge those estimated costs to its storm reserve.
• reduce cost recovery for certain Solar Base Rate Adjustment projects.
On August 3, 2021, the PSC approved DEF’s previous request for a mid-course fuel cost correction, authorizing the utility to begin collecting from customers the 2020 under-recovery and a portion of the expected 2021 under-recovery in September 2021. With natural gas prices continuing to increase since DEF’s mid-course correction, the utility projected a $246.8 million under-recovery for 2021.
A typical 1,000 kWh bill for a DEF residential customer will increase $8.75, on average, in 2022, which is $4.67 less than it would have been without DEF’s plan.
DEF serves more than 1.9 million customers in Florida.
For additional information, visit www.floridapsc.com.
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