FPL's investments in fuel-efficient energy centers to continue to deliver exceptional savings to customers in 2014
- Investments in fuel-efficient energy centers and upgraded nuclear plants in 2013 minimize increased expense due to rise in total cost of fuel
- Fuel cost, a pass-through charge from which FPL does not benefit, is primary driver for increase
- With the Public Service Commission's approval of 2014 rates, FPL typical residential bill to remain lowest in Florida and about 25 percent lower than the national average. Finalized rates very close to preliminary projections communicated in FPL's Aug. 30 news release
JUNO BEACH, Fla., Dec. 3, 2013 /PRNewswire/ -- Florida Power & Light Company today announced that the cumulative customer fuel savings produced by FPL's investments to increase the fuel efficiency of its power plants since 2001 have topped $6.5 billion while, at the same time, a total of approximately 64 million tons of carbon dioxide emissions have been avoided.
Of the more than $6.5 billion in total customer fuel savings since 2001, approximately $580 million was saved during the past year alone. In fact, 2013 is expected to be FPL's most fuel-efficient year to date as the company's plants continue to generate more electricity using less fuel than ever before.
"FPL's investments in fuel-efficient power plants that run on American-produced natural gas continue to save our customers real money without sacrificing our highly reliable electric service," said Eric Silagy, president of FPL. "While we can't control the cost of fuel, we have nearly eliminated our use of oil, and we continue to work hard to make our power plants as efficient as possible to help decrease the amount of fuel used to produce power, which, in turn, directly reduces the impact of those costs on our customers."
While the costs of many other products and services have increased significantly in recent years, FPL's typical residential bill continues to be lower than it was several years ago thanks in large part to these fuel-efficiency investments.
The fuel savings are helping hold down cost increases. Earlier today, the Florida Public Service Commission approved updated rates that will result in a net increase of less than $5 a month –17 cents a day or approximately 5 percent – on a typical, 1,000-kWh residential customer bill in January 2014. At slightly less than $100, FPL's typical bill will remain significantly lower than state and national averages, which are currently in the range of $124 to $126, and the lowest among the state's 55 electric utilities.
The January 2014 adjustment is primarily due to a relatively small increase in the overall total cost of fuel FPL uses to generate electricity. In 2013, FPL's customer fuel charge was reduced to the lowest level in a decade. The fuel component of a customer's bill reflects actual costs of fuel that FPL purchases to generate electricity at its power plants, an expense FPL passes directly on to customers with no markup. The price of fuel is determined by global energy markets, not FPL.
As an example of the benefits of fuel efficiency for customers, FPL's recently completed Cape Canaveral Next Generation Clean Energy Center uses about 33 percent less fuel to produce the same amount of electricity as the power plant it replaced. Using less fuel is better for the environment, and it protects customers from fluctuations in the price of fossil fuels. In July, FPL demolished its 1960s-era Port Everglades power plant to make way for a new clean energy center that will enter operation in 2016. The company's Riviera Beach Next Generation Clean Energy Center is on schedule to begin generating power for customers during the first half of 2014.
In addition to the fuel charge, FPL's January 2014 bill includes costs for purchased power, nuclear development, completed nuclear upgrades, energy conservation programs, environmental compliance and other non-fuel components of electric service. There is no impact to 2014 rates from FPL's recently announced selection of proposals for a new natural gas pipeline system that will bring additional clean, domestic fuel to meet the growing electricity needs of Florida's economy in the years ahead.
FPL previously provided estimates in a news release on Aug. 30 to help customers plan ahead for 2014. Customers can visit www.FPL.com/rates to use FPL's online calculator to estimate their 2014 bill based on their individual energy use. FPL also offers energy-efficiency surveys online and in-person that provide personalized savings plans filled with energy-saving tips and recommendations. Residential customers can visit www.FPL.com/OHES to take the survey online, while business customers can visit www.FPL.com/BEE to schedule an in-person evaluation. FPL offers a variety of energy-saving incentives and other programs such as FPL Budget Billing®, which helps to even out bills throughout the year so a customer pays about the same amount each month.
FPL's Typical 1,000-kWh Residential Customer Bill
Bill totals based on FPL's 1,000-kWh residential rates for fuel, capacity, nuclear, environmental and conservation cost recovery clauses; the storm charge; and the state gross receipts tax. *Figure reflects the average total of FPL's 1,000-kWh residential bill January 2013 through December 2013.
Florida Power & Light Company
Florida Power & Light Company is the largest rate-regulated electric utility in Florida and serves the third-largest number of customers of any electric utility in the United States. FPL serves approximately 4.6 million customer accounts and is a leading Florida employer with approximately 10,000 employees as of year-end 2012. During the five-year period ended December 31, 2012, the company delivered the best service reliability among Florida investor-owned utilities. As of year-end 2012, its typical residential customer bills are the lowest in Florida, and based on data available in July 2012, are about 26 percent below the national average. A clean energy leader, FPL has one of the lowest emissions profiles and one of the leading energy efficiency programs among utilities nationwide. FPL is a subsidiary of Juno Beach, Fla.-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.FPL.com.
Cautionary Statements And Risk Factors That May Affect Future Results
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inability to operate any owned nuclear generation units through the end of their respective operating licenses; liability for increased nuclear licensing or compliance costs resulting from hazards posed to owned nuclear generation facilities; risks associated with outages of owned nuclear units; effect of disruptions, uncertainty or volatility in the credit and capital markets on NextEra Energy's ability to fund its liquidity and capital needs and meet its growth objectives; inability to maintain current credit ratings; risk of impairment of liquidity from inability of creditors to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's investments; effect of inability of NextEra Energy subsidiaries to upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; and effect of disruptions, uncertainty or volatility in the credit and capital markets of the market price of NextEra Energy's common stock. NextEra Energy discusses these and other risks and uncertainties in its annual report on Form 10-K for the year ended December 31, 2012 and other SEC filings, and this press release should be read in conjunction with such SEC filings made through the date of this press release. The forward-looking statements made in this press release are made only as of the date of this press release and NextEra Energy undertakes no obligation to update any forward-looking statements.
SOURCE Florida Power & Light Company