Duke Energy Florida cuts rates for customers

- Lower natural gas costs and innovative planning provide customers even more savings

Feb 08, 2016, 15:33 ET from Duke Energy

ST. PETERSBURG, Fla., Feb. 8, 2016 /PRNewswire/ -- For the fourth time in three years, Duke Energy's Florida customers will see lower electric rates, if plans are approved by the Florida Public Service Commission (FPSC). 

The company today filed a request with the FPSC to reduce rates, beginning with April 2016 billing, due to lower projected natural gas prices.

The net fuel and capacity cost change will cut $5.83 from the typical 1,000-kWh residential customer's monthly bill for a total cost of $108.32.

"After this price drop, our customers will be paying about 21 percent less for electricity than they were in January 2009. That's nearly $30 in savings every month," said Alex Glenn, Duke Energy state president – Florida. "We continue to seek innovative approaches to provide the best possible price while we invest in affordable, clean energy and improve reliability for our customers every day."

Business customers will also see similar rate reductions depending on a number of factors including rate class and type of service.

Duke Energy Florida's typical residential rate is approximately 20 percent below the national average. According to the Consumer Price Index*, costs for housing, transportation and food have increased, while Duke Energy Florida rates have dropped. Duke Energy Florida previously reduced the residential rates by more than 6 percent in January 2016.

Duke Energy Florida works to actively manage its fuel contracts and keep costs as low as possible for customers. The company makes no profit from the fuel component of rates.

Other cost-saving price changes are on the horizon. In the spring, the company plans to issue low-cost bonds to cut costs associated with the Crystal River nuclear plant. This process, called Asset Securitization, will save customers approximately $600 million as compared to traditional cost recovery methods, depending on the interest rate. Once in place, customers will see a new line on the bill titled "Asset Securitization Charge." The amount of the charge is currently estimated to be approximately $2.93/month, which is about $2 less – a more than 35 percent savings for the next 20 years – than what customers would pay on a 1,000 kWh residential bill under traditional cost recovery methods.

Individual electric bills vary greatly and depend on the amount of electricity used.

Duke Energy Florida

Duke Energy Florida owns coal-fired and natural gas generation providing about 9,000 megawatts of owned electric capacity to approximately 1.7 million customers in a 13,000-square-mile service area.

With its Florida regional headquarters located in St. Petersburg, Fla., Duke Energy is the largest electric power holding company in the United States. Its regulated utility operations serve approximately 7.3 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 23 million people. Its Commercial Portfolio and International business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com

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*Based on 12-months ending Sept. 2015, according to the Consumer Price Index, based on the U.S. Bureau of Labor Statistics: food +0.8 percent, housing +3.2 percent, transportation +2.2 percent and electricity -0.4 percent.

Contact: Ana Gibbs
Office: 813.928.7263
24-Hour: 800.559.3853

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SOURCE Duke Energy