Duke Energy Florida has reached a settlement agreement with consumer representatives and other parties, significantly reducing the proposed increase to base electric rates compared to its initial request. This new proposal, which awaits approval from the state Public Service Commission, outlines a $203 million increase in 2025 and an additional $59 million in 2026. Additionally, it includes staggered increases over three years to support solar energy projects.
The settlement agreement ensures residential, commercial, and industrial customers will experience lower bill increases than initially proposed. While base rates are set to rise, overall residential bills are projected to decrease in January due to the expiration of storm recovery and other temporary costs. This reduction is estimated to bring the average bill for 1,000 kilowatt-hour usage down from $165.76 to $157.50.
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The revised proposal represents a compromise that balances the needs of Duke Energy Florida to invest in infrastructure and renewable energy sources with consumer interests in affordable and predictable electricity rates. A key element of the settlement involves a range for Duke’s allowed return on equity, a measure of profitability, set between 9.3% and 11.3% with a midpoint of 10.3%.
This settlement, pending approval, demonstrates a common practice in utility rate cases, where negotiations between utilities and consumer advocates lead to mutually agreeable solutions. It stands in contrast to the initially proposed base rate increases of $593 million in 2025, $98 million in 2026, and $129 million in 2027, which have now been revised downward.
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The Public Service Commission is expected to review the settlement in August. If approved, the new rates would take effect in 2025, providing greater rate stability for customers and enabling Duke Energy Florida to continue investing in the state’s energy future.
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