Duke Energy's Florida Makeover: New Rates, Solar Investments, And Energy Efficiency Goals

Author: Lekha Gupta | April 03, 2024 06:01am

Duke Energy Corporation‘s (NYSE:DUK) Florida segment stated that it filed new base rates with the Florida Public Service Commission (FPSC). 

Duke Energy Florida stated it would also reduce rates by filing a fuel mid-course adjustment and requesting approval of new cost-effective energy efficiency goals and programs to help customers in saving energy bills.

The company commented that the base rate aims to help it increase efficiency and reduce outages, which included investment in 14 new solar sites of 1,050 megawatts overall.

The expected impact of these requested base rate changes is projected to be an average annual increase of about 4% of the total bill from 2025-2027. 

The rate impact for just the base rate increase is projected to be about $16.48 in 2025, $2.73 in 2026, and $4.93 in 2027 on a 1,000-kilowatt bill. 

Duke Energy Florida anticipates total customer bills to decrease Y/Y in January 2025, even with the requested base rate hike.

This will be the second consecutive year decrease in residential customer rates by Duke Energy Florida. The 2025-2027 rate case filing is subject to FPSC approval.

Duke Energy Florida also disclosed it plan to file a fuel and capacity rate request due to declining natural gas costs, which is anticipated to lower customer bills by over $5, in addition to a $11.29 decrease that began in January 2024.

The company expects to file later this month, with the rate change would go into effect following the FPSC approving this request.

Also Read: Duke Energy Bows To Pressure, Reportedly To Phase Out CATL Batteries At Its Civilian Projects

Investors can gain exposure to the stock via SPDR Select Sector Fund – Utilities (NYSE:XLU) and Vanguard Utilities ETF (NYSE:VPU).

Price Action: DUK shares closed higher by 0.49% at $96.54 on Tuesday.

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