Florida regulators approve base rate hike for Duke Energy customers

(The Center Square) — Around 2 million Florida electricity customers will be paying a higher base rate after Duke Energy Florida's increase petition was approved by state regulators.

The Florida Public Service Commission approved the highly contested rate hike Wednesday after negotiations between Duke Energy, groups representing residential customers — including the Sierra Club and the League of United Latin American Citizens — industrial customers and environmentalists reached a mutual agreement.

Duke Energy Florida state president Melissa Seixas said in a statement on Duke's website that everyone was able to reach a productive outcome together and that Duke will continue to pass on savings to customers.

"We appreciate the Florida Public Service Commission's review, along with the collaboration of the consumer representatives and business groups, to reach this productive outcome," Seixas said in a statement. "Approval of this agreement will make a difference for our customers and communities we serve. We'll continue to pass on savings directly to customers, while also increasing service reliability and advancing the clean energy vision for the state."

During the PSC hearing, Commissioner Mike La Rosa said the agreement ultimately benefited customers.

"When I look at how this impacts customers, is this in the greater good for customers? 1,000%," La Rosa said. "Is it in their public interest? I do agree that it is. I think every negotiation is a bit of a give and take, and I think, frankly, this was a job well done."

In its original petition, Duke proposed a $820 million increase over three years beginning January 1, 2024. This raised concern from customers and advocate groups, who argued that the company was already earning profits above the national average.

Duke covers a 13,000-square-mile service area in Florida and owns approximately 12,300 megawatts of generation capacity for its almost 2 million residential, commercial, and industrial customers.

In the final agreement, Duke will receive an extra $262 million and another $141 million when new solar plants are constructed.

Despite the base rate increase, monthly bills are still projected to decrease thanks to the end of Duke's temporary 2022 storm recovery charge in December. Current projections show the average residential customer using 1,000 kilowatt hours of energy will save an estimated $8.26 or 5% on residential bills in January 2025.