Florida Power & Light Co. plans to reduce electric rates again in 2016 as the company's long-term investments in efficiency, in addition to low fuel prices, continue to generate savings for customers.
FPL filed a request with the Florida Public Service Commission to reduce rates, which will save a typical 1,000 kWh residential customer about $2.50 a month on average in 2016 compared with current rates.
Businesses will also see lower rates, with anticipated savings in the range of about 2 to 6 percent for typical business customers, depending on rate class and type of service.
"We're looking forward to delivering another rate decrease to our customers," said Eric Silagy, president and CEO of FPL. "Our previous investments in smart technology and relentless focus on productivity are paying off for our customers. While many every day products and services have gone up in price, FPL rates have actually decreased. In fact, our typical bill in 2016 will be more than 10 percent lower than it was 10 years ago."
Today, FPL's typical residential customer pays about 30 percent less for electricity than the national average. The company's 1,000 kWh residential bill is also the lowest among reporting utilities in Florida.
FPL customers are benefiting from the company's strategic decision to phase out older power plants and invest in advanced clean-energy centers that use less fuel to generate electricity.
For example, the effectiveness of the company's investments since 2001 in high-efficiency natural gas energy alone have produced more than $7.5 billion in fuel savings for customers. These efficiency savings are in addition to savings from low market prices for natural gas in recent years.
"Our goal is simple: Provide excellent service and value today while preparing for the energy needs and challenges of tomorrow. Our focus is on being the best in the industry by delivering power that is far cleaner and more reliable than the average utility, while keeping our customers' electric bills affordable today and for years to come," Silagy added.
Rate estimates reflect FPL's projections for 2016 for the cost of fuel to generate power and other components of a customer's electric bill. The PSC reviews FPL's cost projections as part of its annual regulatory process later this fall. With PSC approval, lower rates will take effect beginning in January 2016.