TAMPA, Fla. — Duke Energy, Florida Power and Light, and TECO are raising rates this month to offset costs incurred during Hurricane Ian and Nicole, along with a volatile natural gas market.
That means those costs will be pushed to the consumer in the form of higher prices.
"U.S. natural gas futures price volatility, both implied and historic, hit record highs in 2022 as global prices spiked due to supply disruptions and sanctions linked to Russia's war in Ukraine, feeding demand for U.S. exports," according to Reuters.
FPL told ABC Action News the typical increase for a residential bill will go up by 10%, TECO also by 10%, and Duke Energy by about 20%.
"So for every 1000 kilowatt hour you use, and as the average amount our customers use, you should be seeing about a $6 increase," Ana Gibbs, a spokesperson for Duke Energy, told ABC Action News reporter Michael Paluska.
The energy increases couldn't have come at a worse time, the middle of spring, when summer temperatures are already here, which means more energy to cool homes.
"So actually, the number one thing that's costing you at home is your A/C, which makes sense because we're in Florida," Gibbs said. "We ask customers if they can keep it around 78 degrees."
Gibbs said families could opt into budget billing, get a free energy audit, or apply for financial assistance. Turning off ceiling fans when you aren't in the room, closing curtains to block the sun, and getting an energy audit are all options to find savings.
Solar continues to grow in Florida, but not at the pace, many environmental groups hoped. Duke Energy says they will have 1,500 megawatts of solar online by 2024, which can power roughly 300,000 homes.
For comparison, Texas, one of the states leading the country in renewable energy production, saw it's capacity rise to 10,329 megawatts in 2021, according to the U.S. Energy Information Administration.
"It's not nearly enough, so when you are asking, can Duke Energy do better? I would say every one of the Florida investor-owned utilities can do better than they are doing," Brooke Ward, the senior Florida organizer withFood and Water Watch, said. The non-profit tackles food access, climate, energy, and clean water issues.
"The utilities like to blame their rate hikes on things like hurricanes or the volatile costs of fuels, but the truth is that their reliance on fossil fuels is what's really driving our rates up at the end of the day," Ward said.
Duke Energy said they had "$442.1 million for storm restoration work, mostly associated with hurricanes Ian and Nicole." Duke Energy converts a lot of its power through natural gas. Ward said that needs to change to stabilize prices.
"I'd like to see the big utilities, Tampa Electric, Duke Energy, Florida Power, and Light, investing the money that they are putting into pipelines and power plants and fuel into clean, affordable renewable energy to move us to a sustainable rate, to energy that will keep producing that isn't going to have the volatility in prices and ultimately is going to save us all a lot of money at the end of the day," Ward said.
