Duke Energy Florida files annual projections for fuel and environmental costs

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ST. PETERSBURG, FLA. - Duke Energy Florida today filed its annual requests with the Florida Public Service Commission (PSC) to recover costs for fuel used to generate electricity, for purchased power and for environmental investments at generating plants.   

"We work hard to deliver reliable and affordable electric service to our customers 24/7," said Alex Glenn, Duke Energy state president – Florida. "Although we cannot control the price of fuel needed to run our power plants, we actively manage our business operations so we can provide dependable service to customers who rely on us."

If approved by the PSC, the company’'s annual projections filed to date will result in an increase of approximately $8.24 per month -- or about 7 percent -- on a 1,000-kilowatt-hour (kWh) residential bill. This would increase the current price of $116.06 to $124.30. New prices will take effect with the first billing cycle for January 2014.

Below is a summary of the filings, based on a monthly 1,000-kWh residential bill:

  • Fuel: Filed today; increase of $6.84 (from $33.93 to $40.77)
  • Purchased power: Filed today; decrease of $1.83 (from $12.65 to $10.82)
  • Environmental compliance: Filed today; decrease of $2.51 (from $4.94 to $2.43)
  • New nuclear generation: Filed May 1 and revised by a partial deferral requested Aug. 5; increase of 89 cents (from $4.73 to $5.62)
  • Energy-efficiency programs: To be filed Sept. 10

Customers benefited from settlement-related refunds totaling $129 million in 2013 and will continue to benefit from an additional $259 million through 2016.

The largest increase is in the fuel charge, which recovers the actual cost of fuel, mainly natural gas and coal, used to generate electricity. Fuel is one of the largest components of the electric bill. By law, the company makes no profit from the fuel component of the bill.

Fuel consumption and costs are subject to a variety of factors including weather, customer demand and commodity prices. The annual fuel filing provides a means of ensuring that customers are charged fairly for fuel costs incurred to provide electric service.

The Aug. 30 filing also included estimates for a decrease in the cost of purchased power. Utilities routinely purchase power to ensure customers'’ energy needs are met in the most cost-effective manner possible.

The environmental compliance charge recovers the costs of environmental investments. The environmental projects in the filing include environmental controls at two coal units at the Crystal River Energy Complex and the conversion of the Anclote Power Plant from oil to cleaner-burning natural gas. The conversion will eliminate approximately 98 percent of the metals and approximately 99 percent of the sulfur dioxide (SO2) that the current units emit. Particulate emissions will be reduced by more than 90 percent.

The PSC hearings on the fuel, capacity, environmental and energy-efficiency charges are scheduled to take place Nov. 4-6. At that time, the total 2014 customer rate will be determined.

About Duke Energy

Duke Energy Florida, a subsidiary of Duke Energy (NYSE: DUK), provides electricity and related services to approximately 1.7 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing more than 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Duke Energy Florida is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. More information is available at www.duke-energy.com

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at: www.duke-energy.com.