Duke Energy to issue new rates compensating for Ian, Nicole restoration

Rate hike will take effect in April

Duke Energy crews deploy from Seven Springs in Pasco County, Florida. Captured Friday, Jan. 15, 2022. (Duke Energy Florida)

St. PETERSBURG, Fla. – Most customers of Duke Energy Florida will see a slight increase in their bill starting next month after the Florida Public Service Commission on Tuesday approved the energy provider’s latest fuel and capacity rate request.

The new rate — designed to recover costs incurred from the prep work, response and restoration performed in hurricanes Ian and Nicole, more generally reflecting 21 months of “fuel under-recovery” — will take effect beginning in April, impacting most commercial and industry customers’ monthly bills with a 2-3.9% increase, according to a news release. A typical residential customer using 1,000 kWh will get a bill for $171.83, an increase of just under 4%, the release states.

According to Duke Energy, natural gas prices were driven up and its supply was rendered uncertain due to “a number of unique events” in 2021 and 2022. The energy provider uses natural gas as its main fuel source for nearly 2 million customers.

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“We are pleased with the Florida Public Service Commission’s rapid review and approval of the updated fuel and capacity rate request. This provides more immediate relief for our customers,” Duke Energy Florida President Melissa Seixas said in a statement. “We encourage families who are facing financial hardships and need assistance to reach out to us.”

The release described Duke Energy’s solutions for cutting costs, such as passing along about $56 million in annual corporate tax savings from the Inflation Reduction Act and refunding customers $11.7 million in tax savings from solar energy generated in 2022, what the energy provider states reduced costs by $1.90 per 1,000 kWh per customer starting in January.

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About the Author:

Brandon, a UCF grad, joined the ClickOrlando team in November 2021. Before joining News 6, Brandon worked at WDBO.