Hurricane season was particularly unkind to electric infrastructure in Florida in 2024, and the state’s largest utility is out to be made whole– or as close as it can get.
This week the Florida Public Service Commission (PSC) approved interim storm restoration charges for Florida Power & Light Company (FPL) stemming from Hurricanes Debby, Helene, and Milton. The PSC also approved FPL’s request for $150 million to replenish its storm reserve, which the utility says was primarily depleted by Hurricane Idalia last year and then “wiped out” after Hurricane Debby in August.
The four hurricanes caused more than 3 million combined outages to FPL customers via damaging winds, storm surge, and in the case of Milton, dozens of “unusually powerful,” long-track tornadoes.
FPL filed its petition with the PSC on October 29 based on its 2021 Settlement Agreement, which allows FPL to collect hurricane-related costs and maintain a storm reserve fund. A total of $1.2 billion in interim storm restoration charges includes $113.5 million for Hurricane Debby, $157.8 million for Hurricane Helene, and $811.1 million for Hurricane Milton.
For FPL residential customers using 1,000 kWh service, the temporary surcharge will be an additional $12.02 for 12 months, from January 1 through December 31, 2025. These charges are subject to a refund, with interest, pending further review once the total actual costs are known.
The PSC also approved several programs to improve the safety of the state’s infrastructure, including:
- The Gas Utility Access and Replacement Directive (GUARD) at Florida Public Utilities Company (FPUC). The PSC approved FPUC’s 10-Year GUARD program in August 2023. GUARD will replace pipes and facilities and relocate distribution mains and services to further enhance the safety and reliability of FPUC’s gas distribution system.
- The Cast Iron/Bare Steel Pipe Replacement Rider (Rider) at Peoples Gas System. Approved by the PSC in 2012, the Rider program allows Peoples to recover costs for accelerated replacement and modernization of natural gas pipelines. The surcharges were first implemented in January 2013. Currently, Peoples has an active petition with the commission for an expansion of the Rider program.
- The Safety, Access, and Facility Enhancement (SAFE) program at Florida City Gas (FCG). FCG’s SAFE program, which the PSC approved in 2015, relocates existing gas mains and associated facilities from rear lot easements to the street front, improving access and customer service. In October, the PSC approved FCG’s petition to modify the SAFE program to include replacing span pipes, burying shallow and exposed pipelines, and replacing obsolete pipes and related facilities.
Fellow utility Duke Energy Florida has recently noted that it also anticipates filing storm cost recovery for hurricanes Debby, Helene, and Milton this month, impacting customer rates as soon as March 2025.
Last month, the Florida PSC approved Duke’s request to lower rates and decrease customer bills in January 2025 as part of an annual adjustment for the cost of fuel used to generate electricity at the company’s power plants. However, earlier this year, Duke requested permission to raise base rates by about $820 million over the next three years, the Tampa Bay Times has reported.
