Electric utilities cut bills temporarily for COVID-19

The state’s largest utilities such as Duke Energy and Florida Power & Light Co. and some municipal utilities such as Mount Dora’s are reducing power bills temporarily in response to the COVID-19 hit on the economy.

Participating utilities are able to do so by tapping cash put aside as a result of relatively lower costs for natural gas that runs electric generators.

Investor-owned utilities such as Duke and FPL are required by the state to refund to customers any savings realized from purchases of fuel, but they typically spread refunds over a year of billing cycles.

Central Florida’s largest power provider, Duke Energy, will “fast track” fuel-savings refunds during May bills, with a decrease of 21 percent for typical residential customers and a reduction of 20 percent to 45 percent for business customers.

For May billing, FPL will make a one-time cut of nearly 25 percent for typical residential customers.

Municipally owned utilities are not directly regulated by the state and have more latitude in managing savings from fuel bills.

Orlando’s utility has not opted yet to cut bills by dipping into fuel savings.

But many of the more than 30 members of the Florida Municipal Power Agency, an advocacy group and power provider for city-owned electric utilities, are ramping up to cut bills via fuel savings.

Agency spokesman Ryan Dumas said at least a dozen members are evaluating temporary cuts in bills.

One of the first to make the move is Mount Dora’s utility, which will reduce bills by about 10 percent starting in April and running six months. Another agency member, Jacksonville Beach’s utility, also has announced bill reductions.

“Now that fuel prices are low, we felt it was important to go ahead and reduce the rates now as opposed to waiting until later,” said Steven Langley, director of Mount Dora’s utility.