- Company continues to expect customer bills to decrease in
2025 from 2024
ST.
PETERSBURG, Fla., July 15,
2024 /PRNewswire/ -- Duke Energy Florida,
consumer representatives and business groups reached a
comprehensive agreement that increases reliability and advances the
clean energy vision for the state, while focusing on ways to assist
and pass on savings to customers.
If approved by the Florida Public Service Commission (FPSC), the
agreement will allow for an increase in base rates, among other
provisions, yet the company still expects overall customer bills to
decrease in January 2025, compared to
January 2024. The 2022 fuel
under-recovery, storm restoration cost recovery and some legacy
purchased power contracts will expire by year-end 2024. The removal
of these costs will lower customer bills.
Duke Energy Florida has already reduced rates twice this year
with reductions in January and June. Residential customers are
paying approximately $17 per 1,000
kWh less today, compared to one year ago.
"Duke Energy Florida works hard to meet the unique needs of the
diverse customers we serve. We remain committed to delivering on
what customers want from us, their local utility," said
Melissa Seixas, Duke Energy Florida
state president. "This agreement delivers the smarter, cleaner
energy future customers deserve while prioritizing reliability and
price stability."
If approved, the base rate changes are estimated to result in an
average annual 2% bill increase over the three-year period. This is
composed of $203 million and
$59 million in base rate increases in
January of 2025 and 2026, respectively, as well as increases
associated with 12 new solar facilities as they come on-line,
estimated at $12 million, $71
million and $58 million in 2025, 2026
and 2027, respectively.
Based on current projections, Duke Energy Florida expects a
typical residential customer using 1,000 kilowatt hours to see a
decrease in their January 2025 bill
of $8.26, a 5% decrease when compared
to December 2024.
This collaborative agreement will allow Duke Energy Florida 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.
Some of the key takeaways from the proposed 2025-2027 agreement
include:
- Continued grid modernization to serve increased population
growth through improved reliability, resulting in fewer outages and
shorter restoration times.
- Ongoing power plant enhancements and efficiencies to allow them
to produce more power with the same amount of fuel – generating
savings for customers.
- Building 12 new solar plants between 2025 and 2027, adding
another 900 megawatts (MW) of clean energy to Florida's grid.
- Continued investments in innovative renewable energy
technologies such as utility-scale battery storage to meet growing
energy needs, improve reliability and build a stronger, smarter
energy grid.
Among other provisions, the agreement provides flexibility for
Florida's most vulnerable
customers during times of need and extreme weather events,
including suspending disconnects for nonpayment of Duke Energy
Florida bills when actual temperatures reach 95 degrees or greater.
The company will also work to increase participation in its
Neighborhood Energy Saver program by 10% and to increase the
installation of smart thermostats from 10% to 40% for
income-qualified customers.
Duke Energy Florida developed the agreement collaboratively with
customer representatives of several consumer groups, including the
state's Office of Public Counsel, Florida Industrial Power Users
Group, PCS Phosphate Company, Inc., Nucor Corporation and Florida
Retail Federation.
The agreement, filed on July 15,
2024, is subject to approval by the FPSC.
Duke Energy Florida
Duke Energy Florida, a subsidiary of Duke Energy, owns 12,300
megawatts of energy capacity, supplying electricity to 2 million
residential, commercial and industrial customers across a
13,000-square-mile service area in Florida.
Duke Energy
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in
Charlotte, N.C., is one of
America's largest energy holding companies. The company's electric
utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio
and Kentucky, and collectively own
54,800 megawatts of energy capacity. Its natural gas utilities
serve 1.7 million customers in North
Carolina, South Carolina,
Tennessee, Ohio and Kentucky.
Duke Energy is executing an ambitious clean energy transition,
keeping reliability, affordability and accessibility at the
forefront as the company works toward net-zero methane emissions
from its natural gas business by 2030 and net-zero carbon emissions
from electricity generation by 2050. The company is investing in
major electric grid upgrades and cleaner generation, including
expanded energy storage, renewables, natural gas and nuclear.
More information is available at duke-energy.com and the
Duke Energy News Center. Follow Duke Energy
on Twitter, LinkedIn, Instagram and Facebook,
and visit illumination for stories about the people and innovations
powering our energy transition.
Cautionary Statement Regarding Forward-Looking Statements
This document includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements are based on management's beliefs and assumptions. These
forward-looking statements are identified by terms and phrases such
as "anticipate," "believe," "intend," "estimate," "expect,"
"continue," "should," "could," "may," "plan," "project," "predict,"
"will," "potential," "forecast," "target," "outlook," "guidance,"
and similar expressions. Various factors may cause actual results
to be materially different than the suggested outcomes within
forward-looking statements; accordingly, there is no assurance that
such results will be realized. These risks and uncertainties are
identified and discussed in Duke Energy's Form 10-K for the year
ended December 31, 2023, and
subsequent quarterly reports filed with the Securities and Exchange
Commission ("SEC") and available at the SEC's website at
www.sec.gov. In light of these risks, uncertainties and
assumptions, the events described in the forward-looking statements
might not occur or might occur to a different extent or at a
different time than Duke Energy has described. Duke Energy
expressly disclaims an obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contact: Ana Gibbs
24-Hour: 800.559.3853
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SOURCE Duke Energy