The Florida Public Service Commission (PSC) today approved Duke Energy Florida, LLC’s (DEF) agreement to apply federal tax savings to offset storm restoration costs for Hurricane Michael, thereby avoiding a surcharge to DEF customers.
DEF had originally requested approval to recover $223.5 million, equating to $6.95 on a monthly 1,000 kWh residential bill for 12 months, beginning in July 2019. This agreement avoids these charges and continues DEF’s use of 2017 Tax Cuts and Jobs Act savings to cover hurricane recovery costs for its customers.
“Duke is using tax savings wisely to benefit its customers,” said PSC Chairman Art Graham. “Coupled with our approval last month of Duke’s use of tax savings on costs for Hurricanes Irma and Nate, the utility’s customers are realizing significant bill savings. This is an effective storm cost recovery solution and is in the public interest.”
The agreement also allows DEF to replenish its storm reserve fund and is signed by the Office of Public Counsel—representing all consumers—the Southern Alliance for Clean Energy, and White Springs Agricultural Chemical, Inc.
Hurricane Michael hit Florida’s panhandle in October 2018 as a Category 5 storm that caused widespread damage to DEF’s Northwest Florida service area.
DEF serves 1.8 million customers in Florida.
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