Duke Energy Florida
wants permission to charge its customers more for electricity this summer.
TALLAHASSEE — State regulators are poised to consider a proposal that would lead to Duke Energy Florida customers paying more for electricity this summer, primarily because of higher-thanexpected costs of fuel for power plants.
The Florida Public Service Commission is scheduled to take up the proposal Monday, which would add several dollars to typical homeowners’ monthly bills, starting in July. Commission staff members recommended approval of the increase last week.
Fuel such as natural gas and coal makes up a large portion of electric bills, with utilities typically going before the Public Service Commission each fall to get approval for fuel costs, which are then passed on to customers.
For example, a Duke residential customer who uses 1,000 kilowatt hours of electricity a month now pays an overall bill of $117.24, with $33.77 of that amount related to fuel costs, according to the commission staff.
The proposal for a mid-year increase, filed by Duke in April, stems primarily from fuel costs that were higher than projected for 2016 and 2017. In its proposal, Duke pointed to what is known as an “under-recovery” of $182 million in fuel-related costs.
In the meeting Monday, the commission also will consider a smaller increase for Duke customers that’s related to financing of bonds. That issue involves a type of financing, called securitization, that was used in the closure of a Crystal River nuclear plant.
If the fuel and securitization proposals are approved by the commission, a Duke residential customer who uses 1,000 kilowatt hours of electricity a month would see an overall bill of $123.23 — up from the current $117.24.
The fuel portion of the bill would go from $33.77 to $38.47, while the securitization portion would go from $2.45 to $3.59, according to commission numbers. A gross-receipts tax would increase by 15 cents.
Utilities commonly use a 1,000-kilowatt hour residential bill as a benchmark, though many customers use more electricity each month.