Just in time for summer heat to kick in, your Florida Power & Light costs are set to decline significantly.
Two rate decreases are set to kick in beginning in April and May that will reduce “typical” FPL customers’ bill by $14.50 a month for the remainder of the year.
FPL describes a “typical” customer as using 1,000 kilowatt-hours a month. Many South Florida customers use much more during the hottest months of the year, which for them will mean even larger monthly savings.
April bills will see a reduction of nearly $7. That’s because a temporary surcharge to recover restoration costs from past hurricanes expires on March 31.
Then in May, a fuel-cost adjustment will save that typical 1,000-kWh customer an additional $7.50 a month, assuming the Public Service Commission approves a rate-adjustment request filed by FPL on Wednesday.
The reduced rates will remain in effect through the end of 2024, FPL spokesman Christopher McGrath said.
The fuel-cost adjustment is required by state law when the price of natural gas used by FPL to power its electricity generation plants changes compared to what the company estimates in the fall.
Utilities are allowed to request rate increases when natural gas prices rise unexpectedly in the middle of the year and required to seek rate decreases when natural gas prices fall.
According to the U.S. Energy Information Administration, natural gas futures prices reached $3.82 per million British Thermal Units on Oct. 10 of last year, then fell to $1.58 on Feb. 15. On Tuesday, the futures price was $1.71/MMBtu.
The all-time high price, $15.38, was reached on Dec. 13, 2005. The all-time low was $1.32, reached on Jan. 13, 1995.
In a news release, FPL President and CEO Armando Pimental was quoted as saying, “We are committed to providing reliable energy and keeping customer bills as low as possible.
“While we are pleased with the possibility of back-to-back rate reductions, we also encourage customers to take advantage of tools and tips from our energy experts to help customers reduce their energy usage and make their bills even lower.”
Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at rhurtibise@sunsentinel.com.