The Florida Public Service Commission (PSC) today reduced Florida Power & Light Company’s (FPL) 2015 fuel and purchased power cost recovery factors, lowering customer bills beginning in May.
Currently, a monthly electric bill for a residential FPL customer using 1,000 kilowatt hours (kWh) is $100.12. After today’s approved adjustments, the same residential bill will be $97.11, a $3.01 monthly reduction through December 2015.
The fuel and purchased power 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, but lesser mid-course corrections are allowed.
FPL’s current fuel factors were set by the Commission during the October 2014 cost recovery clause hearing. In response to FPL’s subsequent petition citing a $218 million projected over-recovery, the Commission found adjustments that increase the projected over-recovery to approximately $219 million, or 6.54 percent. FPL’s requested mid-course reduction is primarily due to a decrease in projected natural gas prices.
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