Bill is expected to decrease from approximately $109 in December 2009 to approximately $100 in January 2010
– By Linton Levy –
Florida Power & Light Company has announced that it expects to reduce the typical 1,000 kilowatt-hour residential customer bill about $9 a month in 2010, subject to approval by the state’s Public Service Commission (PSC). The bill is expected to decrease from approximately $109 in December 2009 to approximately $100 in January 2010.
FPL’s updated estimate includes the impact of its pending request for a base rate adjustment, the impact of lower projected fuel prices for 2009-2010 and improvements in fuel efficiency at the company’s power plants. The reduction represents more than $100 in savings over the year compared to the December 2009 typical residential customer bill.
The current estimate lowers the bill even further than FPL had forecast earlier this year. When the company filed its rate case in March 2009, it expected 2010 bills to drop to about $104.
The estimated bill of approximately $100 for a typical 1,000 kilowatt-hour residential customer is the lowest since 2005. FPL’s bill is already the lowest of all 54 utilities in Florida, according to Florida Municipal Electric Association data for June 2009, the latest available. Based on that data, FPL residential customers already save an average of $28.50 per month compared to other Floridians – an annual savings of more than $340.
The company filed its 2010 fuel cost projection with the PSC today. While the company cannot control the price of fuel, FPL works diligently to reduce the overall amount of fuel its power plants use – and passes those savings directly to customers. FPL makes no profit on the fuel used to generate electricity.
FPL’s investments in fuel efficiency have significantly decreased the amount of fuel that its plants use. In fact, FPL’s investments in making its power plants more efficient have reduced fuel costs by nearly $3 billion since 2002 and the company expects savings to reach $1 billion annually beginning in 2014 as compared to 2002.
“Our investments in fuel efficiency have resulted in our fossil plants being the most efficient among large-scale utilities in the country, but we can do even more. Nobody wants to be stuck driving a gas guzzler if pump prices go back to $4.50. And because there is a risk of natural gas prices rising again, we want our power plants to be as efficient as a fuel-sipping hybrid vehicle,” said FPL President and CEO Armando J. Olivera. “We’re benefiting now from improvements in fuel prices and our past investments in efficiency. But it’s precisely because fuel charges could go up again that we are seeking base rate adjustments that will allow us to continue investing to achieve even greater fuel efficiency in the future.”
FPL will appear before the PSC beginning Aug. 24 to explain its request for a base rate adjustment.
“We believe our rate request is fair and reasonable. Thanks both to our efforts and to some relief from high fuel prices, customers will see lower bills in this challenging economic environment. At the same time, we can continue to invest in the electrical infrastructure to meet the future energy needs of our customers and our state while also creating jobs. We’re investing to make our infrastructure stronger every day, in good weather and bad. We’re investing in smart technology that gives customers more control and improves reliability. We’re doing our part to fight climate change by investing in even cleaner energy. And we’re investing to increase fuel efficiency and diversity of fuel supply. That’s a good deal for customers, both now and in the future,” Olivera said.
“In the nearly quarter century since our last base rate adjustment, we have provided customers with reliability that is among the best in the nation, a clean energy profile that is among the best in the nation and a customer bill that is below the national average. That’s a record we want to maintain,” he said.