The Florida Public Service Commission (PSC) today approved a mid-course adjustment to Florida Power & Light Company’s (FPL) 2022 fuel factors due to higher natural gas prices. FPL customers will see an increase in their monthly bills.
“Rising fuel prices are affecting electricity generation costs. Since projecting its annual fuel costs, FPL has seen more than a 10 percent cost increase,” said PSC Chairman Gary Clark. “The PSC’s cost recovery rule ensures that utility fuel costs are timely monitored, so the PSC can better protect ratepayers now from even further volatility in fuel charges.”
Mid-course corrections—or adjustments—are used when a utility’s costs increase or decrease significantly within a calendar year. Under Commission rules, a utility must notify the PSC when it expects an under- or over-recovery greater than 10 percent.
Effective in the first billing cycle of January 2022, FPL’s average 1,000 kilowatt hour (kWh) residential bill will increase $6.82 a month, from $113.85 to $120.67. An FPL Northwest Service Territory residential customer bill using 1,000 kWh will increase $6.83 a month, from $148.78 to $155.61.
2022 Cost Recovery Charges
Current fuel costs for FPL and the other investor-owned utilities were set by the PSC during the November 2021 cost recovery clause hearing. By Florida Statute and established Commission policy, electric utilities may recover certain expenses from customers through cost recovery charges adjusted annually by the PSC. Cost recovery is allowed on fuel and purchased power, capacity, conservation, and environmental requirements. Utilities may not, however, earn a profit on fuel charges.
The majority of the charges approved are related to fuel and are included in the fuel charge on customers’ bills. All other approved charges are included in the energy charge, which also includes the utilities’ base rate charge.
Starting in January 2022, monthly bill charges for a residential customer using 1,000 kWh are:
• Duke Energy Florida, LLC: The current bill of $132.21 will increase to $140.96, a change of $8.75.
• Tampa Electric Company: The current bill of $118.07 will increase to $120.91, a change of $2.84.
• Florida Public Utilities Company: The current bill of $129.36 will increase to $129.49, a change of $0.13.
For additional information, visit www.floridapsc.com.
Follow the PSC on Twitter, @floridapsc.