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.
Author: STAFF HERE ORLANDO WRITER
ORLANDO STAFF WRITER The ORLANDO STAFF WRITER represents the experienced team at HEREOrlando.com, your go-to source for actionable local news and information in Orlando, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Orlando International Fringe Theatre Festival, Megacon Orlando, and Central Florida Fair. Our coverage extends to key organizations like the Orlando Economic Partnership and Hispanic Chamber of Commerce Metro Orlando, plus leading businesses in leisure and hospitality that power the local economy such as Walt Disney World Resort, AdventHealth, and Universal Orlando. As part of the broader HERE network, including HEREJacksonville.com, HEREPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
