Rates to stay below national average
ST. PETERSBURG, Fla. – Duke Energy Florida (DEF) today filed its annual request to set electric rates for 2018 with the Florida Public Service Commission (FPSC).
Based on fuel, capacity, energy conservation and environmental costs, DEF estimates in 2018 residential customers’ rates will increase about 8.5 percent for a total cost of $128.54 per 1,000 kWh. The increase will take effect from the January 2018 billing cycle through the December 2018 billing cycle.
“Safe, reliable, clean energy is important to all our customers. It’s important to us too,” said Harry Sideris, Duke Energy Florida president. “Through cost management and careful planning, Duke Energy Florida has made thoughtful investments to significantly enhance service reliability and reduce emissions for our customers. We will continue to work hard to provide the best possible value for our customers.”
The 2018 rate change is due mainly to increased fuel costs. There are slight increases in all other clauses that make up the total rate.
2018 residential customers’ rates fuel, capacity, energy conservation and environmental costs:
- Duke Energy filed for an increase of $7.14 from $33.77 to $40.91 per 1,000 kWh due primarily to a $196 million under-recovery in fuel costs for 2017. The total projected fuel cost to be recovered is approximately $1.7 billion. The company makes no profit from fuel.
- The company also filed the Capacity Cost Recovery Clause, which increased by $1.43 from $11.38 to $12.81 per 1,000 kWh due to an increase in purchased power costs and a 2017 under-recovery. DEF previously filed for recovery of Nuclear Cost Recovery Clause costs. These costs will increase from $1.56 to $4.02 per 1,000 kWh due to recovery of Levy costs, which the company stopped collecting from customers in May 2015 when the FPSC approved removal of the fixed Levy Nuclear Project charge from customers’ bills.
- Duke Energy filed the Energy Conservation Cost Recovery Clause, which will increase 11 cents from $3.17 to $3.28 per 1,000 kWh to recover
- On Sept. 1, 2017, Duke Energy will file the Environmental Cost Recovery Clause (ECRC). Based on DEF’s current estimates, the ECRC rate will increase by 7 cents from $1.51 to $1.58 per 1,000 kWh due primarily to a smaller over-recovery included in 2018 rates compared to 2017.
Each year, Duke Energy Florida files estimates for the following year, as well as any adjustments needed for the current year, to recover costs for fuel and purchased power, energy efficiency programs, environmental improvements and nuclear cost recovery.
The FPSC will hold hearings on the fuel, capacity, energy conservation and environmental costs beginning Oct. 25-27, 2017.
Duke Energy Florida
Duke Energy Florida owns and operates a diverse generation mix, including renewables, providing about 8,800 megawatts of owned electric capacity to approximately 1.8 million customers in a 13,000-square-mile service area.
With its Florida regional headquarters located in St. Petersburg, Fla., Duke Energy is one of the largest electric power holding companies in the United States. Its Electric Utilities and Infrastructure business unit serves approximately 7.5 million customers located in six states in the Southeast and Midwest. The company’s Gas Utilities and Infrastructure business unit distributes natural gas to approximately 1.6 million customers in the Carolinas, Ohio, Kentucky and Tennessee. Its Commercial Renewables business unit operates a growing renewable energy portfolio across the United States.
Duke Energy is a Fortune 125 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.
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Media Contact: Ana Gibbs