Florida PSC Greenlights $1.2 Billion in Interim Storm Charges for FPL Amid Hurricane Recovery

Florida Public Service Commission Approves $1.2 Billion in Storm Charges for FPL

Florida has recently been in the spotlight following the approval by the Florida Public Service Commission (PSC) for a staggering $1.2 billion in interim storm restoration charges for Florida Power & Light Company (FPL). This decision comes as a response to extensive damage caused by several hurricanes during the tumultuous 2024 hurricane season, particularly Hurricanes Debby, Helene, and Milton.

The Context

The hurricanes wreaked havoc on Florida’s electric infrastructure, resulting in over 3 million outages for customers. Damaging winds, storm surges, and the emergence of powerful, long-track tornadoes during Hurricane Milton significantly compromised FPL’s capabilities to provide uninterrupted service.

Financial Impact and Charges

After filing a petition on October 29, based on a previous 2021 Settlement Agreement, FPL has now been authorized to collect hurricane-related costs. The charges specifically breakdown as follows: $113.5 million for Hurricane Debby, $157.8 million for Hurricane Helene, and a hefty $811.1 million for Hurricane Milton. Customers using 1,000 kWh of service will see an additional temporary surcharge of $12.02 added to their bills for the duration of one year, from January 1 through December 31, 2025.

Future Financial Restorations

While these charges will help replenish the company’s resources, they are subject to a refund, with interest, pending a detailed review once all actual costs have been established. Alongside the restoration charges, the PSC has also sanctioned FPL’s request for an additional $150 million aimed at replenishing its storm reserve fund. This fund was significantly depleted primarily due to Hurricane Idalia last year and was ultimately exhausted following Hurricane Debby.

Additional Measures and Other Utilities

In a comprehensive move to enhance the safety of the state’s energy infrastructure, the PSC approved several initiatives designed to fortify the resilience of FPL’s operations. Competing utility company Duke Energy Florida is also preparing to recover costs associated with the same hurricanes, which may affect customer rates as soon as March 2025.

In a related note, the PSC approved Duke’s request to lower customer bills in January 2025 as part of an annual adjustment reflecting the costs associated with fuel used in generating electricity. Notably, earlier this year, Duke proposed an increase in base rates by approximately $820 million over the next three years, as reported.

Looking Ahead

The approval of these significant storm charges marks a pivotal moment for FPL as it attempts to recover from a devastating hurricane season that strained its systems and resources. With both FPL and Duke Energy facing challenges from recent storms, Florida’s electricity consumers should brace for potential fluctuations in their utility expenses in the near future.

As the situation develops, affected residents are encouraged to stay informed about their utility companies’ plans and any adjustments to their rates as part of ongoing recovery efforts. The PSC continues to monitor the situation closely to ensure stability and reliability in Florida’s energy grid.