Over the past few weeks, Florida regulators have organized four public meetings to gather feedback from customers who will be impacted by Duke Energy Florida’s proposed base rate increase. The Center Square reports on this development.
In April, the Florida Public Service Commission was petitioned by the company to make its base rates increase permanent. The annual increases are set to continue for the next three years, starting from January 1st.
According to Duke Energy Florida, it is seeking a justifiable rate of return on its investments, having refrained from increasing rates since 2021. The company caters to more than 2 million customers and operates across an expansive area of 13,000 square miles.
Once approved, the proposed rate hike will result in an increase for residential customers who use 1,000 kilowatt hours per month from $157.47 to $169.16. In addition, Duke Energy has also requested a minimum monthly bill of $30.
At the customer service hearing held on June 18, Duke Energy Florida customers expressed their worries about the rising cost of living and the resulting price hike that will put more financial pressure on families.
In August, the commission will conduct a technical hearing to determine whether to give the green light to base rate hikes, according to Chairman Mike La Rosa.
According to Austin Watrous, an attorney from the Florida Office of Public Counsel, Duke Energy Florida’s proposal approval will result in an increase in base rates for 2025, 2026, and 2027. This would generate an additional revenue of $593 million in base rates for 2025, followed by an extra $98 million on Jan. 1, 2026, and then by another $129 million on Jan. 1, 2027.
According to Watrous, the legality and absence of supporting evidence of these increases, as well as the speculative nature of future cost projections, are being questioned by the counsel. While Duke is entitled to a fair return, the counsel believes that the proposed rates represent an excessive return on equity.
According to Jordan Luebkemann, who spoke on behalf of Florida Rising and the League of United Latin American Citizens, Duke Energy Florida had the fifth-highest residential customer bills in the United States in 2023.
According to Luebkemann, Duke’s proposal comprises of a minimum bill, a significant increase in rates, and a considerable surge in the return on equity, which essentially means guaranteed profits. These profits will be directed towards a series of construction projects that Duke has not yet demonstrated as necessary.
