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Volatile Natural Gas Prices Prompt Duke Energy Florida to Seek Fuel Adjustment

ST. PETERSBURG, Fla., Dec. 17, 2021 /PRNewswire/ — Duke Energy Florida today proposed a fuel adjustment in a way that would limit the impact of volatile natural gas prices on customer bills.

Duke Energy Florida uses natural gas as its main fuel source to generate electricity at most of its power plants.

The change would take effect in March 2022. The company does not earn any profit from fluctuating fuel costs. 

Since January 2021, natural gas prices have increased almost 45% and remain volatile due to a number of unique events that drove up prices and caused supply uncertainty. This is impacting not only utility companies but also a variety of other industries that rely on natural gas, as well.

Rather than recover the increased fuel costs over a shortened 10-month period in 2022, Duke Energy Florida has chosen to spread the recovery over a longer period, beginning in March 2022 and ending no earlier than February 2023.

By recovering over a longer period, the monthly bill impact to a typical residential customer using 1,000 kWh is reduced by about 1%. A typical residential customer using 1,000 kilowatt-hours (kWh) will see an increase of $6.62 in the customer’s monthly bill, on average, for 2022.

Commercial and industrial customers will see bill impacts ranging from a 4% to 10% increase.

“We want to help our customers who may already be struggling to pay their current energy bills,” said Melissa Seixas, Duke Energy Florida state president. “We are working hard to minimize the impact and provide customers the opportunity to better manage their energy usage and reduce their bills. In addition, we are managing our fuel and generation resources in the most cost-effective manner for our customers, and our rate mitigation plan will continue to reduce some of the price pressure on customers.”

Duke Energy Florida’s innovative Rate Mitigation Plan, approved by the Florida Public Service Commission on Nov. 2, 2021, will remain in place and continue to benefit customers by spreading the recovery of approximately $247 million of unrecovered fuel costs over two …

Full story available on Benzinga.com

Source: benzinga.com

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