Customers of four investor-owned electric utilities will soon see a break on their bill. Today, the Florida Public Service Commission (PSC) approved accelerated bill reductions for customers to assist with the economic effects of COVID-19.
“With electric utilities experiencing lower fuel costs, it is the right time to accelerate these savings as bill reductions to help customers experiencing financial hardships as a result of COVID-19,” said PSC Chairman Gary Clark. “Together, we are navigating this unprecedented time, and I am pleased with all of Florida’s investor-owned utilities’ actions to assist customers and ensure reliable service continues.”
As a result of today’s approval, customers of Florida Power & Light Company (FPL), Duke Energy Florida, LLC (DEF), and Gulf Power Company (Gulf) will receive a one-time bill reduction in May to reflect over recovery of fuel and capacity cost recovery factors. Tampa Electric Company’s (TECO) approved proposal will pass fuel-cost savings to customers from June through August, with smaller monthly savings through December.
The approved adjustment will lower a monthly 1,000-kilowatt hour (kWh) residential bill for Gulf Power customers: A 1,000 kWh residential bill for May will be $84.04, a decrease of $56.39.
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, although lesser mid-course corrections are allowed, as in this case during the ongoing COVID-19 pandemic.
Current fuel factors for the utilities were set by the PSC during the November 2019 cost recovery clause hearing. For additional information, visit www.floridapsc.com.