State regulators Tuesday approved utility costs that will translate to higher electric bills in January for homeowners and businesses — and the pain won’t end there.
Bills will go up in January for many customers of Florida Power & Light, along with customers of Duke Energy Florida, Tampa Electric Co., and Florida Public Utilities Co. They likely will increase again in the spring because of the high costs of natural gas used to fuel power plants.
With utilities heavily reliant on natural gas, Florida Public Service Commission Chairman Andrew Fay expressed frustration about the costs and urged the regulatory panel to look at “risk management” to try to limit volatility in fuel prices.
“We don’t control fuel, and that makes this extremely challenging,” Fay said.
Customers’ bills are made up of a combination of expenses, such as base rates, fuel costs, and environmental costs. The Public Service Commission meets each fall to consider certain costs, including fuel, and how much will be passed on to consumers in the ensuing year.
In addressing rates, utilities use a benchmark of residential customers who use 1,000-kilowatt hours of electricity a month. Commission votes Tuesday finished the process of determining costs that will take effect in January and will result in the following:
- Because of a merger with the former Gulf Power, FPL has two sets of rates. FPL residential customers in areas traditionally served by the utility will see 1,000-kilowatt-hour bills go from the current $120.67 to $125.39 in January. They will go up again to $129.59 in February.
- Former Gulf Power customers in Northwest Florida who use 1,000-kilowatt hours of electricity will see their bills go down a penny in January to $155.60, according to the commission. But the bills will go up to $159.79 in February.
- Duke customers who use 1,000-kilowatt hours will see their bills go from the current $150.02 to $168.90 in January, according to the commission.
- Tampa Electric customers who use 1,000-kilowatt hours will see their bills go from $132.66 to $146.72.
- Florida Public Utilities Co. customers who use 1,000-kilowatt hours will see their bills go from $142.80 to $175.46.