Duke Energy Won't Raise Rates For Hurricane Irma Costs

ST. PETERSBURG, FL – Duke Energy Florida announced Wednesday it won't ask for a rate increase to pay for Hurricane Irma costs, citing savings to the company from the new federal tax law. Instead of increasing customer rates, the company plans to apply for federal tax reform savings toward those storm costs, company officials said.

On Dec. 28, the company filed a request with the state for recovery of $513 million – $381 million for power restoration costs and $132 million to replenish its storm reserve fund. Residential customers would have seen an increase of $5.20 per 1,000 kilowatts of electricity on a typical monthly bill over a three-year period – an average of $187.20. Commercial and industrial customers were expected to see an increase of about 2.5 to 6.6 percent.

“We are pleased that this solution will prevent a rate increase for our customers,” said
Harry Sideris, Duke Energy Florida state president. “Hurricane Irma was the worst storm
to ever hit Duke Energy Florida and impacted many lives. Redirecting the tax reform
savings against the storm costs ensures that our customers will reap the benefits of this
new law.”

The change is supported by the Office of Public Counsel and consumer advocate
groups. The Florida Public Service Commission will review the costs to be recovered
and the level of the tax benefit and could approve the change by year-end.

Image via Duke Energy