The state Public Service Commission on Tuesday approved a plan that will provide a break to Florida Power & Light customers because of lower-than-expected natural gas prices.
The plan, which the commission unanimously supported without discussion, will reduce customers’ monthly bills starting in May — and partially offset increases that took effect in April.
Utilities generally are allowed to pass along projected fuel costs to customers. After soaring natural-gas costs last year, FPL filed a petition March 1 that said natural-gas prices are expected to be lower this year than previously projected. As a result, FPL proposed reducing amounts collected from customers by $379 million during the rest of 2023.
FPL also says the lower gas prices will save about $115 million in early 2024.
In addressing rates, utilities rely on a benchmark of residential customers who use 1,000 kilowatt hours of electricity a month. Because of a merger with the former Gulf Power in Northwest Florida, FPL has two sets of rates.
Under the plan approved Tuesday, customers who are in areas traditionally served by FPL and use 1,000 kilowatt hours of electricity will see their monthly bills decrease from $144.38 to $139.95, according to the Public Service Commission.
Customers in Northwest Florida who use 1,000 kilowatt hours will see their bills decrease from $163.30 to $158.86.
Rates for FPL and other utilities increased in April because of a combination of factors, including hurricane-related expenses and last year’s high natural-gas prices. Florida utilities rely heavily on natural gas to fuel power plants.