FPL bills expected to decrease in April as new plant goes into service

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Florida Power & Light Co. today filed a request with the Florida Public Service Commission  to reduce customer rates beginning April 1  in tandem with the commissioning of the new FPL Port Everglades Next Generation Clean Energy Center, due to anticipated savings from increased fuel-efficiency and lower projected natural gas prices.

The fourth rate decrease in 16 months, the April reduction will trim $1.65 off a typical 1,000-kilowatt hour residential customer’s monthly bill – for a total reduction since 2014 of nearly $10. FPL said its typical bill in April 2016 will be more than $16 lower than it was 10 years ago.

“Our long-term strategy of investing in fuel-efficient modernizations, including phasing out old, oil-fired power plants and replacing them with advanced clean energy centers that run on clean, low-cost, U.S.-produced natural gas, continues to pay off meaningfully for our customers,” said Eric Silagy, president and CEO of FPL. “Today, our typical customer bills are more than 15 percent lower than they were a decade ago, and our continued investments in fuel efficiency will help keep fuel costs low over the long-term.”

The company confirmed today that the FPL Port Everglades Next Generation Clean Energy Center is expected to enter service on April 1, bringing the benefits of high-efficiency natural gas generation to customers approximately two months ahead of schedule and on budget.

When the plant enters service, a generation base rate adjustment will take effect at the same time the plant’s fuel-efficiency improvement reduces the fuel rate, as prescribed by the company’s 2012 rate settlement agreement.

FPL business customers are also expected to see a rate reduction – with typical business customer bills decreasing in the range of approximately 2 to 7 percent compared with current rates, depending on rate class and type of service.

Even before the latest rate reduction, FPL’s typical residential bill is already about 30 percent lower than the national average and the lowest among reporting Florida utilities.

 

FPL’s Typical 1,000 kWh Residential Customer Monthly Bill
2006 February
2016
Beginning
April 2016
Net Decrease
April 1, 2016
$108.61 $93.38 $91.73 Additional savings of $1.65/month vs. today
and total decrease of more than 15% vs. 2006
Notes: Above figures reflect actual rates for 2006 and February 2016 and projected rates for April 2016. All rates are subject to change and must be approved by the PSC before implementation. Bill totals include the state’s standard gross receipts tax but do not include any local taxes or fees that vary by municipality.

 

The FPL Port Everglades Next Generation Clean Energy Center is designed to generate enough electricity to power about 260,000 homes and businesses using 35 percent less fuel than the original oil-fired plant that it is replacing. By leveraging state-of-the-art technology, the new energy center will also cut the carbon emissions rate in half and reduce overall air emissions by more than 90 percent.

Investments in high-efficiency natural gas generation have enabled FPL to reduce its use of foreign oil by more than 99 percent – from more than 41 million barrels of oil in 2001 to less than 1 million barrels annually today. The company has been strategically phasing out older, less-efficient fossil fuel plants and replacing them with new, high-efficiency natural gas energy centers – like the FPL Port Everglades Next Generation Clean Energy Center. Since 2001, the effectiveness of these investments since 2001 has saved our customers more than $8 billion on fuel and prevented more than 95 million tons of carbon emissions.

Last month, FPL initiated the process of setting new base rates to take effect when the current base rate settlement agreement expires at the end of 2016. In March, FPL plans to formally file a $1.325 billion base rate increase to include three base rate adjustments during the period 2017 through 2020 to support continued investments in advanced infrastructure and clean generation, including the FPL Okeechobee Clean Energy Center, which is scheduled to begin serving customers in 2019.

Based on current cost projections, FPL projects that its typical bill through the year 2020 will remain lower than what customers paid in 2006, even with the full proposed base rate increase. More information can be found at www.FPL.com/answers.

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