Duke Energy Florida Multiyear Agreement

The agreement reduced the originally requested 2025 revenue increase from $503 million down to $203 million, plus an estimated $12 million for solar units as they go on line. It will allow Duke Energy Florida to proactively plan for changes driven by population growth, technological advancements and customer expectations, while continuing to make investments to reduce outages, shorten response times, meet future energy demands and explore innovative technologies to generate cost savings for our 2 million customers. For reference, all documents originally filed in the rate case can be found on the Florida PSC website:

• Docket: 20240025
• Synopsis of Our Rate Request
• Rate Case Overviews
  
• Schedule of Events

The agreement will allow an average annual 2% bill increase over the three-year period (2025-2027). This is composed of $203 million and $59 million in base rate increases in January of 2025 and 2026, respectively, as well as increases associated with 12 new solar facilities as they come on line, estimated at $12 million, $71 million and $58 million in 2025, 2026 and 2027, respectively.

The base rate is one component of our customer bills and is generally associated with the costs of constructing, operating and maintaining the electrical system. There are other bill components associated with things like fuel costs, storm restoration costs and environmental compliance that are recovered through a different part of the customer bill. However, having defined expectations regarding the base rate – which makes up about half the total rate – allows customers to plan and Duke Energy Florida to continue making investments that will help improve reliability and provide increasingly clean power.

These costs are associated with investments needed to maintain reliable and increasingly clean energy for our customers now and into the future. The benefits of these investments are shared with our customers. For example, the generation modernization projects are expected to significantly reduce fuel costs, and the savings will be directed to customers. 

The new rates will take effect in January 2025

Even with the requested base rate increase, the company still expects overall customer bills to decrease in 2025. The 2022 fuel under-recovery, storm restoration cost recovery and legacy purchased power contracts will expire year-end 2024, which will lower overall bills in 2025. In fact, based on current projections, Duke Energy Florida expects a typical residential customer using 1,000 kilowatt-hours to see a decrease in their January 2025 bill of $9.77, or about 6%, when compared to December 2024.

The agreement provides flexibility for the company’s most vulnerable customers in Florida during times of need and extreme weather events, including suspending disconnects for nonpayment of electric bills when actual temperatures reach 95 degrees or greater. The company will also work to increase participation in its Neighborhood Energy Saver program by 10% and to increase the installation of smart thermostats from 10% to 40% for income-qualified customers.

Duke Energy Florida will further continue its programs and assistance options to support vulnerable customers. This includes connecting customers with agencies that administer the Low-Income Home Energy Assistance Program and Elderly Home Energy Assistance Program. The company also provides its Share the Light Fund®, which assists customers with paying their energy bills.

Customers should also take advantage of the numerous flexible billing and energy savings programs to save energy and money.

To learn more about these programs, call the Customer Care number listed on your energy bill or visit duke-energy.com/HereToHelp.