FPL customers to see lower storm costs in 2024. How much will you save on your power bill?
FPL customers will see their bills drop a bit in the first three months of next year. TECO customers will get a break through 2024, despite a new rate hike.
Why? Because the costs of restoring power after recent hurricanes were less than expected, so the costs passed on to customers won't be as much.
On Thursday state regulators at the Florida Public Service Commission (PSC) approved requests from both companies to replenish their storm funds and adjust the amount passed along.
Here's what's changing.
How much will I save on my FPL bill in 2024?
About $8.65 a month, for three months, PSC said.
FPL's original storm recovery amount for Hurricane Ian and Hurricane Nicole was $1.46 billion, which also includes funds to replenish FPL's storm reserve. After the company realized the actual costs were likely much lower, they filed a request in September to reduce them to $1.3 billion. PSC approved that Thursday.
"PSC-approved charges for a 1,000 kWh residential bill will change from $15.30 to $6.65, effective January 2024 through March 2024," PSC said in a release.
FPL, Florida's largest electric utility, currently serves approximately 5.8 million accounts or more than 12 million people, the company says.
The company previously lowered rates in July because of lower-than-expected costs of natural gas used to fuel power plants.
2022 rate hike: Florida Supreme Court says state regulators must provide justification for FPL rate hike
How much will I save on my TECO bill in 2024?
About $8 per month, effective January through the rest of 2024.
TECO Energy, Inc, which controls the subsidiaries for Tampa Electric and People's Gas System, got approval to reduce its storm recovery costs for Hurricanes Dorian, Elsa, Ian, Nicole, and Tropical Storms Alberto, Nestor, and Eta down to $134.5 million.
"PSC-approved charges for a 1,000 kWh residential bill will change from $10.22 to $2.19, effective January 2024 with an extended recovery period through December 2024," PSC said.
However, PSC also approved a base rate adjustment from a 2021 settlement agreement, which brings the base rate part of a monthly residential bill up by $1.58 also starting in January, so your actual savings will be about $6.50.
Tampa Electric serves more than 830,000 customers across West Central Florida, the company says.
I use natural gas. Are my rates changing in 2024?
In the same meeting, PSC approved increases for Florida Public Utilities Company’s (FPUC) Gas Utility Access and Replacement Directive (GUARD), Peoples Gas System’s (PGS) Cast Iron/Bare Steel Pipe Replacement Rider (Rider), and Florida City Gas’ (FCG) Safety, Access, and Facility Enhancement (SAFE) program. to continue their maintenance and improvement programs for natural gas pipelines.
FPUC customers using 20 therms will see a monthly surcharge of $0.65, a rise from the previous $0.43
PGS customers will be charged an additional $0.06 monthly
FCG will increase its SAFE program surcharge from $0.44 to $3.17 for those using less than 6,000 therms per year, and from $0.98 to $5.44 for higher-usage customers
The programs are intended to replace outdated and "faltering" pipelines and improve safety, PSC said.
Gas pipeline fees increase: Peoples Gas, FPUC and FCG natural gas bills to go up in 2024. How will your gas bill change?
Why were storm-related costs for FPL and TECO changed?
Utility companies are permitted to pass along costs relating to preparation for storms and restoring power, usually with an estimate or "interim" approval that allows them to begin collecting money from customers before they know the final total. PSC approved FPL to collect for previous storms from April 2023 through March 2024.
But in September FPL said an audit showed the total costs were lower than they predicted. Originally FPL was approved to recover $1.135 billion for Hurricane Ian costs and nearly $165 million for Hurricane Nicole. Those amounts have been revised downward to $1.024 million for Ian and nearly $121 million for Nicole.
However, these are still interim numbers, and once FPL files a final accounting it could lead to additional charges for customers.
Hurricane Ian was estimated to have been the costliest hurricane in Florida history, causing over 150 direct and indirect deaths and over $112 billion in damage, according to the National Hurricane Center. There were no reported direct deaths from Hurricane Nicole although five people in Florida were killed in Nicole-related incidents. The National Centers for Environmental Information estimated the damage from Nicole at $1 billion.
This article originally appeared on The Daytona Beach News-Journal: FPL, TECO to drop storm fees after Hurricane Ian, Nicole costs
