Duke Energy Florida customers ring in New Year with lower rates

• Third price reduction in two years, cost for electricity nearly 15 percent less in 2016 than six years ago

ST. PETERSBURG, Fla. — Duke Energy’s Florida customers will ring in the New Year with lower electric ratesfor 2016. The new lower rates will go into effect with January billing.

The January 2016 rate will be $114.15 per 1,000 kWh (residential), which is 6 percent lower than the final 2015 rate of $121.59

"We continue to work hard to provide the best possible price for our customers," said Alex Glenn, Duke Energy state president – Florida. “Our successful cost management and careful planning is helping lower customer rates while we invest in affordable, clean energy and improve reliability for our customers every day. Under our plan, customers will be paying nearly 15 percent less for electricity in 2016 than they were six years ago.” 

Duke Energy Florida rates are below the national average. Through cost management and careful planning, the company has made investments in its electric system to enhance service reliability and significantly reduce emissions while keeping rates as low as possible for its customers.

According to the Consumer Price Index*, costs for housing, transportation and food have increased, while Duke Energy Florida rates have dropped.

In the first quarter of 2016, the company plans to issue low-cost bonds to reduce the costs associated with theretired Crystal River nuclear plant. This process, called asset securitization, will save customers approximately $700 million as compared to traditional cost recovery methods, depending on the interest rate.

Once in place, customer bills will have a new line item titled “Asset Securitization Charge.” The amount of the charge is currently estimated to be approximately $2.93/month, which is about $2 less than what customers would pay on a 1,000 kWh residential bill under traditional cost recovery methods. Overall, customers will still see an estimated price decrease in 2016 of 3.6 percent – or $4.43/month - on a 1,000 kWh bill compared to 2015 rates following the securitization.

Business customers will also see similar rate reductions compared with current rates, depending on a number of factors including rate class and type of service.

Individual electric bills vary greatly and depend on the amount of electricity used.

The rate decrease is due mainly to lower natural gas prices, which are the primary driver for the more than 20 percent decrease in retail fuel costs. Duke Energy Florida works to manage fuel contracts to keep costs as low as possible for customers. The company makes no profit from the fuel component of rates.

All costs and rates are reviewed and approved annually by the Florida Public Service Commission.

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