Florida residents may have noticed that their utility bill has climbed this summer, and not just because they are using more air conditioning. Duke Energy, with the support of local consumer and business representatives, recently approved a deal with the Public Service Commission to increase base electric energy rates. Duke is given the go-ahead to raise rates by $195 million, taking place in the form of rate increases over three years.
Base rates comprise a significant portion of Floridians’ monthly electric bills and can inspire drawn-out, contentious arguments when they are changed. Duke is currently operating under a 2017 agreement, with the newly approved plan scheduled to cover the next several years. The 2022-2024 plan includes base-rate increases of $67.246 million in 2022, $48.933 million in 2023, and $79.199 million in 2024, for a total of $195.378 million.
Duke Energy serves approximately 1.8 million customers in the state and stated that the average residential customer would see utility bill increases of 3% to 4% in 2022, while non-residential customers could see increases as high as 6.5%. All categories of customers will experience annual increases of 1% to 2% in 2023 and 2024. The settlement stipulates that the amount of profit Duke will be allowed to earn is reduced in the coming years to offset the inevitable increases.
Duke Energy executives, for their part, said they think the agreement is equitable and will help meet the utility’s needs while not overburdening customers. Melissa Seixas, the utility’s state president, shared “We believe firmly that it is in our customers’ best interest and provides the necessary financial infrastructure to allow the company to deliver on what our customers have come to expect from us — safe, reliable, and increasingly clean energy.”
Florida Power & Light (FPL) also raised rates in 2022, with the typical 1,000 kilowatt/monthly energy ill rising 20% this summer. The increase accounts for a similar five-year base rate increase approved by the Florida Public Service Commission as Duke’s arrangement but also reflects a $6.82 per month adjustment for rising natural gas prices.
As Energy Rates Increase – How to Offset
At the time these agreements were structured, the economy was not suffering as it is now. Inflation rates are hitting consumers hard, as gas prices have skyrocketed and associated costs of everything have increased. This makes it a challenging time for utility bills to be rising as well, as all aspects of our monthly budget are heading higher.
Therefore, it is in our best interest to find ways to offset the rising costs. While all Florida summers are hot, we are currently in a serious heat wave – which of course makes it more difficult to keep energy consumption low. Still, we should work on making some compromises in order to keep our energy rates lower and stay within our budgets this season.
- Set your thermostat higher if you leave the house during the day – approximately 81 or 82 degrees is recommended. If you have a smart thermostat, you can schedule it to drop the temperature while you are on your way home.
- Be sure to keep windows closed and drapes were drawn whenever possible not only will this keep the house cooler, but can help to save carpets and furniture from becoming faded in the sun.
- Use your ceiling fans whenever possible. Keep in mind that these fans only move air around, they do not cool the air. So if you leave the room, turn the fan off – it won’t do you any good to keep it running.
- Stay hydrated and drink lots of cool water. Don’t overexert yourself during the hottest part of the day, so you will not feel tempted to lower the A/C more than needed.
- Grill outside instead of cooking inside, as your kitchen can get really hot with a stove and oven in operation.
If you want a professional master electrician to assess your electrical system and make sure it is working as efficiently as possible, call Promise Electric.
