Duke Energy Florida receives rate agreement approval from state regulators

The Florida Public Service Commission (PSC) Aug. 21 approved Duke Energy Florida’s LLC (DEF’s) comprehensive, multiyear rate agreement without modifications.

“We appreciate the Florida Public Service Commission’s review, along with the collaboration of the consumer representatives and business groups, to reach this productive outcome,” said Melissa Seixas, Duke Energy Florida state president.

The rate settlement agreement for DEF, which is effective January 2025 through December 2027, will provide rate stability, increase clean solar energy production, and assist vulnerable customers during extreme weather conditions, the commission said.

Over the term of the settlement, DEF will increase base rates by $203 million in 2025 and $59 million in 2026, for a cumulative rate increase of $262 million, according to the PSC, which added that DEF’s Return on Equity is set at 9.3 percent–11.3 percent, with a midpoint of 10.3 percent.

Meanwhile, solar base rate adjustments are allowed as 12 new solar facilities totaling 900 megawatts (MW) come online.

When combined with other expected rate changes, typical residential customers using 1,000 kilowatt-hours will save an estimated $8.26, or about 5 percent on their electric bills in January 2025 when compared to December 2024, according to DEF, which provides electric service to two million customers in 35 Florida counties.

The agreement also enables DEF to continue making investments to reduce outages, shorten response times, meet future energy demands, increase clean, solar generation, and explore innovative technologies to generate cost savings for its 2 million customers in Florida, the utility said.

“Approval of this agreement will make a difference for our customers and communities we serve,” Seixas said. “We’ll continue to pass on savings directly to customers, while also increasing service reliability and advancing the clean energy vision for the state.”

Seixas added that the settlement agreement allows an average annual 2 percent bill increase over the three-year period. However, the 2022 fuel under-recovery, storm restoration cost recovery, and some legacy purchased power contracts will expire by year-end 2024, and the removal of these costs will lower customer bills in 2025.

Customers also will receive relief from reconnect fees after disconnection for non-payment under the settlement term, as well as relief from being disconnected for non-payment when the actual temperature is 95 degrees or higher, or when the heat index is 105 degrees or higher, the Florida PSC said.

To benefit customers, DEF also will increase its participation goal for the Neighborhood Energy Saver program by 10 percent and increase smart thermostat installations from 10 percent to 40 percent.

Parties joining the settlement, in addition to DEF and the Office of Public Counsel, representing customers, include the Florida Retail Federation, the Florida Industrial Power User’s Group, Nucor Steel Florida Inc., and White Springs Agricultural Chemicals Inc.

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