FPL proposes small customer rate cut due to lower natural gas costs
TALLAHASSEE — Pointing to lower costs of natural gas, Florida Power & Light on Wednesday asked state regulators to approve a rate cut of about enough to pay for lunch.
Most FPL customers in the state pay $135.69 for 1,000 kilowatt hours of electricity. That will go to $128.88 in April and $121.19 in May under the proposal. So the user of 1,000 kilowatts would save $14.50 in May compared with March.
The rate reduction needs approval by the Florida Public Service Commission.
FPL and other utilities rely heavily on natural gas to fuel power plants, and gas prices have been volatile in recent years. When gas prices surge, increased costs are passed along to customers; when prices drop, customers get a break in their bills.
The Public Service Commission each fall approves projected fuel costs for the upcoming year. But if the actual costs differ greatly from the projections, utilities can seek what is known as a “mid-course correction” — the type of proposal that FPL filed Wednesday.
The proposal would save customers about $662 million, the filing said. FPL asked the commission to take up the proposal during an April 2 meeting.
“We are committed to providing reliable energy and keeping customer bills as low as possible,” FPL President and CEO Armando Pimentel said in a statement Wednesday.
Customer rates consist of base rates, fuel costs and other expenses for environmental projects and temporary charges for storm recovery and preparation. While profits are built into utility base rates, the companies are not supposed to profit from fuel costs.