Florida Power & Light Company says it plans to significantly lower bills for the second time this year and fast-track savings to customers amid the pandemic.
Beginning May 1, FPL plans to issue a one-time decrease of nearly 25 percent for the typical residential customer bill as a result of lower fuel costs, pending approval by the Florida Public Service Commission. Business customers will also see a significant one-time decrease in May, which will vary by rate class.
A key factor is the plummeting price of natural gas from $2.71 per million metric British thermal units (mmBtu) in November to $1.68 on the spot market this week. There’s a glut of natural gas on the global market.
FPL and other electric providers in Florida traditionally refund any fuel savings to customers over many months. However, given the abrupt financial challenges facing many customers due to COVID-19, FPL said it will instead request permission to give customers the total annual savings in a single month’s bill.
“Everyone at FPL understands how critical it is to continue to provide reliable electricity and to keep as much money as possible in our customers’ pockets,” said FPL President and CEO Eric Silagy. “Traditionally, our regulators expect these types of savings to be spread out over the balance of the year. However, challenging times call for exceptional measures. I believe this one-time bill decrease is the most effective way to infuse customers with much-needed money as we all navigate through this difficult and unsettling time together.”
Over the last decade, FPL has replaced many fuel oil plants, such as those at Port Everglades and the Port of Palm Beach, with natural gas plants.
