Duke: No Increase from Michael

Hurricane Michael, Mexico Beach FL, Florida Panhandle
Photo credit Drone aerial by Maureen Kenyon & Ricardo Rolon, USA Today Network

Duke Energy's Florida subsidiary says that, despite the devastation from Hurricane Michael to the Florida panhandle, Duke Energy Florida (DEF) will not be asking for a rate increase for its customers in the area.

If the Florida Public Service Commission approves DEF’s proposal, the company will apply federal tax reform savings to pay for storm costs instead of increasing customer rates to cover those costs.  Duke reports this approach will save residential customers in that area $6.95 per 1,000 kWh of electricity on a typical monthly bill.

“The Florida Panhandle is still recovering from the damage to homes, businesses, infrastructure and tourism as a result of Hurricane Michael,” said Catherine Stempien, Duke Energy Florida state president. “We appreciate the Office of Public Counsel, Southern Alliance for Clean Energy and other consumer advocates who helped find a creative solution to avoid the cost impact of the significant restoration and rebuild work that was unprecedented on our system.”

The storm cost recovery associated with Hurricane Michael is estimated at $221 million.

The Florida Public Service Commission will review the Hurricane Michael costs and determine the final amount to be recovered in a subsequent proceeding later this year.

Hurricane Michael was the most powerful Florida Panhandle storm in recorded history and the fourth-most powerful hurricane to strike the United States.