Duke Energy Florida has projected storm-related expenses amounting to $91.9 million following the impact of Hurricane Idalia in certain regions under its jurisdiction.

Duke has submitted a request to the Florida Public Service Commission, aiming to gain authorization for transferring the expenses related to Idalia to customers in 2024. To alleviate the impact on customers’ monthly bills, Duke also suggests distributing the expenses it is already collecting for previous storm events, such as Hurricane Ian and Hurricane Nicole, over a longer period of time.

“Hurricane Idalia impacted more than 200,000 customers in DEF’s (Duke Energy Florida’s) service territory. More than 5,000 line workers, tree professionals, damage assessors and support personnel were staged strategically throughout the state to respond and restore power to customers and communities as quickly and safely as possible.”

Duke Energy Statement

If the entire proposal is accepted, Duke would be able to recover $166.1 million in expenses related to storms from its customers in 2024.

The Public Service Commission has previously permitted utilities to recover storm-restoration expenses from their customers. This matter was expected to be addressed in a Duke rate settlement in 2021. As of Monday afternoon, other utilities had not submitted any proposals to recoup the Idalia expenses, as stated on the Public Service Commission website.

Category 3 Hurricane Idalia reached the Keaton Beach area of Taylor County on August 30th, and then proceeded to traverse a predominantly rural area in North Florida. It had previously moved northward across the Gulf of Mexico, resulting in varying degrees of damage in certain coastal communities.

Duke initiated the process of reclaiming approximately $431.4 million for expenses related to hurricanes Ian, Nicole, Elsa, Eta, Isaias, and Tropical Storm Fred. This reimbursement is expected to be distributed over the course of a year until March 2024. This recovery effort aims to cover storm-related expenses incurred by Duke.

Under Monday’s proposal, the expenses incurred from previous storms will no longer be solely collected in the first three months but will be spread out over the course of 2024. This approach not only applies to the new Idalia costs, but also serves as a means to alleviate the burden of monthly bills by distributing the earlier expenses over a longer period of time.

Utility bills consist of various charges including base rates, fuel expenses, environmental costs, and storm-related costs. In the business domain, it is common practice for the utility industry to analyze the bills of residential customers who consume 1,000 kilowatt hours of electricity monthly. The purpose of this information is to provide knowledgeable individuals with a neutral and informative understanding of the components that make up utility bills.

Duke Energy anticipates that although customers may incur expenses in 2024 due to the impact of Hurricane Idalia, they can expect a decrease in their overall monthly bills. This reduction will not only be a result of spreading out the costs associated with the earlier storm but also due to factors like declining fuel expenses.

In January, Duke announced that residential customers consuming 1,000 kilowatt hours per month would experience a decrease in their bills, going from $183 in December to $171.71.

“We will continue to explore ways to provide the best possible price for our customers while delivering the safe, reliable energy our customers rely on — no matter the circumstance,” stated Melissa Seixas, Duke Energy Florida’s state president, emphasizing the commitment to customer satisfaction in a formal statement.

Duke serves approximately 1.9 million customers in the state of Florida within its customer base.