Florida Power & Light said Tuesday that savings from the federal tax overhaul will allow it to avoid billing customers for the $1.3 billion cost of restoring electricity after Hurricane Irma.
FPL, which services all of Flagler County’s electricity customers, had initially planned to start billing customers in March for the restoration costs but put those plans on hold after Congress and President Donald Trump last month approved the overhaul, which cut corporate tax rates and made numerous other changes in the federal tax code.
In the announcement Tuesday, FPL said a 2016 agreement that set the utility’s base electric rates allowed it to “leverage” the tax savings to deal with the Irma costs.
“The timing of federal tax reform, coming on the heels of the most expensive hurricane in Florida history, created an unusual and unprecedented opportunity,” Eric Silagy, FPL’s chief executive officer, said in a prepared statement Tuesday. “We believe the plan we’ve outlined is the fastest way to begin passing tax savings along to our customers and the most appropriate approach to keeping rates low and stable for years to come.”
Utilities are typically allowed to recoup storm costs from customers, with the issue addressed in FPL, Duke Energy Florida and Tampa Electric rate agreements that were approved in 2016 and 2017 by the Florida Public Service Commission.
Duke filed a petition last month with the Public Service Commission seeking to recoup $513 million in Irma-related costs over a three-year period. That includes money to cover restoration costs and the replenishment of a $132 million storm reserve, according to the filing.
Tampa Electric, meanwhile, filed a petition with the Public Service Commission to recover about $87.4 million in restoration costs and to replenish a storm reserve. Most of that money is related to Hurricane Irma, but Tampa Electric also has included small amounts related to tropical storms and hurricanes dating back to 2015.
The announcement Tuesday from FPL did not detail how the tax savings would flow through to cover the Irma costs. The utility said, however, that the federal tax overhaul also might allow it to continue operating for an additional two years under the 2016 base-rate agreement. That agreement has been scheduled to expire in 2020.
FPL has been collecting extra amounts from customers since last March to cover restoration costs from Hurricane Matthew, which caused extensive damage in 2016 along parts of the state’s East Coast. Those extra charges, which topped $300 million, are slated to end in February.
When that occurs — and without new charges for Irma costs — FPL said customers will see decreases in typical monthly bills. A residential customer who uses 1,000 kilowatt hours of electricity a month, for example, would see a $3.35 reduction starting in March, the utility said in Tuesday’s announcement.
–Jim Saunders, News Service of Florida
Komodo Dragon says
Really, they are already ripping us off big time.
Pogo says
@ A shell game by any other name
So your FPL bill be reduced $40 (12 x $3.35) on an annual basis. Time to buy a new car! Okay, maybe not – maybe a new maga hat and some diapers.Thank the 2 trillion dollar charge on the country’s credit card by Republican criminals and their dear leader lying crooked trump for your found money..
gmath55 says
Looks like Trump’s tax reform is having a ripple affect and helping everybody. But, Nancy Pelosi said wage increases and bonuses from Tax Reform are ‘Crumbs’ and ‘So Pathetic’. And, they say Trump is mentally ill and semi-illiterate?
Remember all the bonuses big companies gave to their employees during Obama’s eight long years in office? Yeah, me neither.
ConstantlyAmazed says
THANK YOU PRESIDENT TRUMP.
Chris A Pickett says
Looks like President Donald J Trump’s passing of this tax law will benefit ALL FPL customers, NOT just the wealthy, as some of these people will have you believe. Thank you Mr. President, My income stayed the same for nearly 7 years of OBUMMER! As a Retiree this means a LOT to mean as every penny counts!
Stanley Wolak says
Thank You President Donald Trump!!!
Herman says
Thank you President Trump!!
Anonymous says
Thank President Trump and the GOP Congress newly passed Tax Bill, that’s what FPL referenced as its reason for not charging YOU the costumer.
Rich H. says
In case you haven’t noticed, Pelosi has some (a lot) of issues.
Just the truth says
Big deal a $3.35 when Trumps new tax bill gave corporations billions,something wrong with this picture, as usual.
Ramone says
How refreshing to see these tax changes trickling down and helping working class citizens. I think it’s safe to assume that our monthly electrical bills would have seen a hike if not for our latest tax reform efforts. well done by all involved!
can'tfoolme says
I don’t believe some people will recognize all the economic improvements coming their way (nor those in many other areas of their lives) and certainly aren’t willing to acknowledge that he is slowly but surely restoring this country. Just imagine how much sooner it could have been done, had the sore losers cared more about the people of this country than their political party.
Anonymous says
Come Nov remember all the Ds who voted FOR this tax cut and the good economic gains it gave people.
Steadfastandloyal says
So American corporations now can improve their competitiveness without harboring the 3rd highest rate in the WORLD! Keep in mind the large corporations employ millions of Americans, pay huge tax builds even after the reduction, contribute huge sums to charities and if they are adeptly run make a handsome profit, which in some is also shared by employees. Putting America first how can reasonable people have a problem with that?
fredrick says
It is funny that those who are blowing this off as, “so what it is nothin”, were the ones complaining when the increase was announced. Maybe if this was Titled “FPL Will Not Charge Customers For Irma Repairs After All, Citing Tax Savings because of OBAMA” they would be praising it.
Mr.G says
HATERS are HATERS …. Thank You President TRUMP for All You Have Been Doing To Help “WE THE PEOPLE” Keep Up The Great Work TRUMP 2020 :)
Stacy barkley says
Then why has my Bill gone up 50% last month bill $95 this month bill $140 and I don’t have an AC unit or a furnace
Anonymous says
Greed rules.
Mike B says
Thank You President Donald Trump!!!
Big red says
Thank you trump