Florida regulators back FPL's Proposal to lower rates come July.

Written by Kristen Schmutz

Belden Communications News

On Tuesday, June 13, 2023, Florida state regulators have given their unanimous approval to a request made by Florida Power & Light Company (FPL) to reduce rates starting in July due to the ongoing decline in fuel prices, and it aims to reflect these favorable trends in customers' bills.

As the largest electric utility in the United States, FPL serves a significant customer base of approximately 5.8 million accounts, supplying clean, affordable, and reliable electricity to over 12 million people.

"We are committed to keeping bills as low as possible for our customers," said Armando Pimentel, President, and CEO of FPL. "With fuel prices moderating, we are pleased to pass along additional savings to our customers. We also encourage our customers to use FPL's free tools to save energy and make their bills even lower."

The Florida Public Service Commission has approved a reduction of $256 million in fuel charges, which follows a previous cutback of $379 million that went into effect in May. As a result of today's approval, the average residential customer bill for 1,000 kilowatt hours (kWh) will be over $8 lower in July compared to April. In Northwest Florida, residential bills for the same energy usage will be lower in July than in 2022. Business customer bills in July will decrease from 2% to 5%, depending on their rate class, compared to current rates.

FPL determines the fuel charge on customer bills based on its projections for fuel expenses at its generating plants. It is important to note that FPL does not profit from fuel costs and strives to operate its power plants in a fuel-efficient manner. Last year, FPL projected its 2023 fuel expenditures, but since then, natural gas prices have declined. As a result, FPL has already made downward adjustments, totaling nearly $1.4 billion in its 2023 fuel charges, which took effect in April and May. The July reduction marks the third decrease in the fuel portion of FPL bills for 2023.

FPL has provided a list of actions customers can take to reduce their energy consumption and their bills, which include setting the thermostat at 78°F or higher, as each degree increase can result in up to a 5% monthly reduction in cooling costs, cleaning the lint filter in the dryer before each load to minimize drying time, turning off ceiling fans and lights in unoccupied rooms, utilizing the FPL Mobile App to track energy usage, activating the free FPL Energy Manager tool to monitor home energy usage, and visiting www.FPL.com/waystosave for additional helpful tips.