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  1. Ray W. says

    I accept that my comment is unrelated to this article.

    On April 2nd, Florida’s oversight commission took up FP&L’s proposal to end its storm fund surcharge that was approved to cover hurricane-related costs and
    to temporarily reduce its fuel charge rate increase that was approved some time ago after natural gas prices rose due to U.S. and EU sanctions on Russian exports of natural gas. I cannot yet find an article about the commission’s final decision.

    If approved, the end of the hurricane surcharge will occur later this month. The fuel charge rate reduction will occur in May. Combined, the two adjustments, if approved, will reduce Flagler County residential electricity rates by just over 10%.

    Due to a mild winter in both Europe and North America, combined with record American natural gas production levels, Henry Hub natural gas futures have plummeted in price. The average price for 1000 cubic feet (kcf) of natural gas on the American market in November 2005, just before the American fracking boom began, was $13.42. The average price for American natural gas for the month of March 2014 was $1.49, a nearly 90% reduction in price. To provide better context, in December 2021, just before Russia invaded the Ukraine, the Henry Hub price averaged $4.69 per kcf. By August 2022, the average price had climbed to $8.81.

    Since many of our domestic oil wells also produce natural gas, more recent American drilling activities driven by artificially inflated crude oil prices ever since OPEC+ began manipulating the international marketplace via implementation of a number of voluntary crude oil production cuts have produced record amounts of American natural gas. FP&L raised prices after the start of the war in the Ukraine. Now, it is seeking to lower prices.

    More on this subject in time.

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