The Florida Public Service Commission has greenlit a settlement that will raise Duke Energy Florida’s base electric rates, enabling the utility to invest in new solar facilities. Despite the increase, the settlement, reached after extensive negotiations, offers a compromise with lower rate hikes than Duke initially proposed.
The approved settlement includes a base-rate increase of $203 million in 2025 and $59 million in 2026. However, Duke will utilize around $50 million in federal tax credits to avoid a rate increase in 2027.
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While customers will see an increase in their base rates, the overall impact on their monthly bills is expected to decrease in January due to the expiration of other costs, such as storm recovery fees.
Duke will also be able to recover costs for 12 new solar projects from customers, as part of the agreement. The utility maintains that the increase in base rates translates to an average annual bill increase of only 2% for residential customers over three years.
Various consumer and business groups backed the settlement, which received no opposition from other stakeholders like Walmart, the Sierra Club, and several advocacy organizations.
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Key aspects of the settlement also include a regulated profit margin for Duke and an agreement to avoid electricity disconnections during extreme heat conditions.
This approval comes amidst a broader landscape of rate cases in Florida, with Tampa Electric Co. also seeking a base rate increase.
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