Electric bills will make Floridians lives more expensive as natural gas prices rise
Florida residents and businesses should expect to see their electric bills rise next year. The Florida Public Service Commission approved utility price increases on Tuesday, and they will take effect in January.
Four investor-owned electric companies in Florida—Florida Power & Light, Duke Energy Florida, Tampa Electric Co., and Florida Public Utilities Co.—asked the Florida Public Service Commission for rate increases, and the commission granted their petitions. Utility bills have already gone up this winter due to rising natural gas prices needed to run power plants, and they will rise again this spring.
Behind the price increase
Floridians who work full-time feel the pinch from the growing costs of housing, property insurance, and necessities. It seems that 2023 will only increase the average Floridian’s cost of living.
The Public Service Commission has an annual meeting in the fall to discuss the cost of fuel and how much of that cost will be transferred to customers in the coming year. Base rates, fuel prices, and environmental charges are just a few components that determine a customer's final electric bills.
Since utility companies rely largely on natural gas, their prices also affect the customer’s bill. Florida Public Service Commission Chairman Andrew Fay suggested the group of regulators investigate risk management to manage rising gas prices and reduce price fluctuations.
Saving energy while cooking and cleaning
Florida Power & Light customers will see a $10 rise in their monthly rates in January, although this will be somewhat mitigated by tax breaks offered by the federal government. However, the tax break will expire in February, leading to yet another price hike.
As projected, the high cost of gasoline and hurricane adjustments are expected to be recouped by FPL's April rate hike. The Florida Public Service Commission authorized a four-year deal that contributes to some of the rate increases. More solar power, subterranean lines, and electrical grid upgrades will all be possible thanks to other alterations.
With the increase in the base rate and the modifications to the pass-through fees, monthly payment for a thousand kilowatt hours will jump from $120.67 in December to $130.23 in January.
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