Florida utility regulators next week could approve proposals by Duke Energy Florida and Tampa Electric Co. to collect more than $1.55 billion from customers to cover hurricane-related costs and replenish storm reserves.
Staff members of the Florida Public Service Commission on Friday recommended that the regulatory panel approve the proposals, which would lead to increased customer bills starting in March and lasting for a year. The commission is scheduled to vote on the proposals Feb. 4.
The utilities are seeking to recoup money they spent to prepare for hurricanes Debby, Helene and Milton last year and to restore power after the storms passed. Both also are seeking to collect money for storm reserve funds and to cover interest costs; Tampa Electric also would collect money for costs related to 2023’s Hurricane Idalia.
In all, Duke would collect about $1.09 billion, while Tampa Electric is seeking to recover $463.6 million, according to the commission staff recommendations.
Utilities typically cite a benchmark of residential customers who use 1,000 kilowatt hours of electricity a month, though actual use varies widely.
The storm-related costs would add $31.18 to the monthly bills of such Duke customers — though Duke said last month it expects the customers would see an actual increase of about $21 a month because of decreases in other costs.
The storm-related costs would add $30.04 to the bills of Tampa Electric residential customers who use 1,000 kilowatt hours a month, according to the PSC staff members.
In making the recommendations, the PSC staff members also looked at the possibility of spreading out the recovery of costs over 22 months instead of 12 months. For example, spreading out the Tampa Electric costs would lead to customers facing a $16.33 increase on their monthly bills if they use 1,000 kilowatt hours.
But the recommendations said a longer time period would also lead to higher overall costs because of additional expenses such as interest.
The commission has routinely approved utility requests to recover storm costs, with the issue also included in overall rate agreements. On Dec. 3, the commission approved a proposal by Florida Power & Light to recover about $1.2 billion from customers for costs related to last year’s hurricanes and to replenish a reserve fund.
While Duke and Tampa Electric would start collecting the money in March, they would ultimately have to justify all of the storm-related expenses and refund any excess amounts of money they collect.
PCS Phosphate and Nucor Steel Florida, two major Duke customers, filed petitions this month to intervene in the Duke case. The PCS Phosphate petition, filed Friday, said Duke “has the burden to prove that all costs for which it seeks recovery were prudently incurred and of the type appropriate to be recovered through this proceeding.”
Duke and Tampa Electric said they faced the largest costs from Hurricane Milton, which made landfall in October in Sarasota County before crossing the state. Duke pinned $769,7 million of its costs to Milton, while Tampa Electric’s proposal included $358.9 million for Milton.
