FPL proposes to hike base rates, cut fuel charge

JUNO BEACH — Florida Power & Light Co. is proposing to hike base rates while reducing the fuel surcharge.

The net effect would be to cut the average customer’s bill by slightly less than $5 a month.  The rate hike would enable the utility to upgrade its power system, FPL said in a statement.

FPL made the rate change proposal Wednesday with the Florida Public Service Commission. Tampa Electric made a similar proposal.

“Our bills are among the lowest in the state and well below the national average, and we’re working hard to keep them that way by making smart investments to benefit our customers,” FPL CEO Armando J. Olivera said. “These investments help to reduce the impact of volatile fuel prices, which in turn helps to keep customers’ total bills lower over the longer term as well.”

Under the company’s proposal,  a residential customer using 1,000 kilowatt-hours a month would see his or her bill fall by about $4.92, or 4.5 percent, to $104.63 from $109.55 as of Jan. 1.

FPL citing data from the Florida Municipal Electric Association and Edison Electric Institute, said its average bill is 18 percent less than the state average, and 17 percent lower than the national average.
“While we are mindful of the difficult economy, we are also responsible for making prudent, long lead-time investments in the electrical infrastructure,” Olivera said. “We’re investing to make our infrastructure stronger every day, in good weather and bad. We’re investing in smart technology that gives customers more control and improves reliability. We’re doing our part to fight climate change by investing in even cleaner energy. And we’re investing to increase fuel efficiency and diversity of fuel supply. “

FPL’s base rate proposal also includes the cost of repairing damage from hurricanes, which is not calculated in present rates.