TALLAHASSEE – Florida residents and companies likely will get hit with larger electric bills in 2023 as utilities proceed to wrestle with elevated prices of pure gasoline.
Florida Power & Light, Duke Energy Florida, and Tampa Electric Co. filed petitions Friday on the state Public Service Commission that detailed anticipated prices in 2023. If the fee approves the utilities’ proposals, every would end result in larger month-to-month bills in 2023.
And which may not be all: The utilities additionally may search to move alongside higher-than-expected gas prices from this 12 months, although they’re holding off on making such requests.
While utility bills are made up of a mixture of prices, a key driver in the petitions is the excessive value of pure gasoline, which Florida utilities depend on closely to generate electrical energy. The three giant privately owned utilities additionally elevated buyer bills earlier this 12 months due to gasoline costs.
“Both domestic conditions and international events have significantly impacted the natural gas market,” Duke’s petition mentioned. “Since early this year, natural gas prices have more than doubled due to increased domestic demand, flat natural gas production, strong LNG (liquefied natural gas) overseas exports, and low natural gas storage inventories. The natural gas market has not stabilized and continues to be extremely volatile.”
As an instance of the business’s heavy reliance on pure gasoline, Tampa Electric expects in 2003 to use gasoline to generate 84 p.c of its electrical energy, with photo voltaic accounting for 11 p.c and coal for five p.c, John Heisey, director of origination and buying and selling for the corporate, mentioned in written testimony included with Tampa Electric’s petition.
Meanwhile, total demand for pure gasoline exceeded provide in 2022, he mentioned.
“Higher gas demand is driven by LNG exports, low coal inventories, extreme summer weather, and low storage inventories,” Heisey mentioned in the testimony. “Production growth has been very slow as producers exercise capital discipline despite rising gas prices. In addition, the Ukraine invasion continues to impact the energy markets through increased volatility and uncertainty, which is expected to continue into 2023.”
The Public Service Commission is predicted to contemplate the petitions in November. As a benchmark, utilities usually cite bills for residential prospects who use 1,000 kilowatt hours of electrical energy a month.
Duke mentioned in its petition that Duke prospects who use 1,000 kilowatt hours are projected to pay a mean of $170.68 in 2023, up from a mean of $148.23 this 12 months. Tampa Electric mentioned in a news launch that such Tampa Electric prospects would pay $146.86 in 2023, up from $132.66 this 12 months.
Because of a merger with the previous Gulf Power, FPL has two units of charges. Its petition mentioned prospects who use 1,000 kilowatt hours a month in areas historically served by FPL would pay $130.23 in 2023, up from $120.67 this 12 months. In the Northwest Florida areas previously served by Gulf Power, prospects would pay $160.43 in 2023, up from $155.61 in 2022.
Natural gasoline is just not the one issue anticipated to lead to larger bills. The utilities are also finishing up multiyear plans that embrace steadily growing base electric charges.
Utilities usually are allowed to move alongside gas prices to prospects and aren’t supposed to accumulate income on these prices. Each 12 months, they file petitions that embrace projected prices for the approaching 12 months. The fee then decides whether or not these projected prices may be baked into prospects’ bills.
Also, the utilities in 2023 may search to recoup higher-than-expected gas prices in 2022. Each has confronted larger prices however mentioned in their filings that they need to wait till late this 12 months or early 2023 earlier than addressing the difficulty.
“FPL believes it is appropriate to continue to monitor the market to determine whether the conditions and international events that have sharply impacted the natural gas market will moderate, such that a future fuel forecast may mitigate the projected fuel costs to be recovered,” FPL mentioned in its petition Friday. “FPL will continue to update its fuel cost calculation with additional data reflecting actual gas prices, actual sales and actual revenues. At the appropriate time toward the end of 2022 or beginning of 2023, FPL will file a request for recovery based on an updated calculation, to be considered by the commission in early 2023 for implementation following the customer notice period.”
Duke and Tampa Electric issued news releases acknowledging what Tampa Electric President and CEO Archie Collins described because the “unique economic challenges our customers and communities are facing.” They additionally pointed to efforts to assist prospects struggling to pay bills.
“We understand our customers continue facing increased financial demands in all parts of their lives,” Melissa Seixas, Duke’s state president, mentioned in an announcement. “We’re connecting customers to available assistance and providing energy-saving tools and programs to help manage their bills and lessen the impact. Please reach out to us. We’re here to help.”
