Duke Energy’s Proposal to Raise Florida Rates Nears Resolution

Duke Energy customers in Florida are close to learning how much more they will pay for base rates on their electric bills starting next year.

On Monday, lawyers representing Duke Energy and the Office of Public Counsel, which advocates for electricity consumers, filed a joint motion to regulators. They agreed to suspend the standard rate case procedures to focus on negotiating a settlement agreement. This agreement will outline key details, such as the guaranteed rate of shareholder profit that Duke will earn from customers over the next three years.

Duke Energy’s requested profit margin has been a contentious issue, as it is higher than the national average, with a midpoint of 11.15%. Last month, during public meetings in the Tampa Bay area, Duke customers urged state utility regulators in the Public Service Commission to reduce this figure. Last year, the average Duke bill in Florida was the fifth-highest in the nation among utilities with at least 100,000 customers.

Base rates, a significant part of electric bills, are set to increase by about $820 million according to Duke’s request. However, Duke has indicated that other charges on customer bills will decrease next year.

Several other groups involved in the case, including large industrial power users and advocacy organizations opposing Duke’s proposed profits, supported the motion to work towards a settlement.

The finalized agreement is expected to be made public in the coming weeks. Once available, the Public Service Commission will review and discuss its approval. Specific details of the agreement remain undisclosed.

“We look forward to sharing more details as it progresses,” said Duke spokesperson Audrey Stasko.