A significant rate decrease has been approved for Florida Power & Light residential customers heading into the year’s peak season for electricity use.
Florida’s Public Service Commission on Tuesday approved the “mid-course correction” sought by FPL to adjust for plummeting costs of natural gas, which fuels the utility’s electricity plants.
The correction will save consumers $662 million through the end of 2024, the PSC reported.
Households in South Florida that consume a “typical” 1,000 kilowatt-hours of electricity each month will pay $7.69 less — or 6% — beginning in May.
That savings follows a decline of nearly $7 a month that took effect in April with the expiration of a temporary surcharge imposed to recover restoration costs from past hurricanes.
That means the total reduction from March to May for “typical” FPL customers will be $14.50 — lowering bills from $135.69 in March to $121.19 in May.
Under Florida law, utilities are not allowed to profit off of fuel charges. If fuel costs rise or fall after they are set for the calendar year, utilities are required to request corrections that could result in lower or higher costs for consumers.
Natural gas futures spot prices reached $3.34 per million British Thermal Units on Oct. 10 of last year, and by last week had fallen to $1.48/MMBtu.
In a news release on Tuesday, FPL President and CEO Armando Pimentel was quoted as saying that the utility remains committed to “providing reliable energy and keeping customers’ bills as low as possible.”
Pimentel continued, “Back-to-back rate reductions are good news for customers. As ever, but especially as the days get warmer, we encourage customers to make their bills even lower by taking advantage of tools and tips from our energy experts to help reduce energy usage.”
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.