State regulators have given the green light for Duke Energy Florida and Tampa Electric Co. customers to expect cheaper electric bills starting in June. The decision, made by the state Public Service Commission without discussion, follows similar approval granted to Florida Power & Light last month.
The savings stem from lower-than-expected natural gas costs, a significant factor in Florida’s power generation. With gas prices experiencing fluctuations, the approved plans aim to pass on the benefits of reduced costs to customers.
For Duke Energy Florida customers, the savings are estimated to be around $233.5 million, while Tampa Electric customers can expect approximately $137.9 million in savings, according to commission documents.
For residential customers consuming 1,000 kilowatt hours of electricity per month, Duke Energy Florida bills will decrease from $160.58 in May to $154.68 in June. Similarly, Tampa Electric customers in the same category will see their bills reduce from $143.48 to $136.44.
This reduction in bills complements previous decreases initiated by the utilities at the beginning of 2024, partly due to reduced fuel costs.
Melissa Seixas, Duke Energy Florida state president, expressed enthusiasm for the approvals, especially given the approaching warmer months. She highlighted that customers’ bills consist of various components, including base electric rates, fuel costs, and environmental project expenses, with fuel costs being the second-largest portion after base rates.
While the approved plans provide immediate relief for customers, discussions about potential base rate increases from 2025 to 2027 are ongoing. Additionally, the impact of hurricane-related restoration costs could influence future bills, pending any storms hitting Florida this year.
The Public Service Commission’s recent actions mirror its decision in April to approve fuel-cost savings for Florida Power & Light customers, benefiting regions formerly served by Gulf Power as well. Such proactive measures aim to alleviate financial burdens on consumers and ensure stable energy costs amidst changing market dynamics.