As the price of fuel continues to decline, Florida Power & Light Company (FPL) has said it is planning to reduce electric rates in 2016.
The company credits its "long-term investments in efficiency, in addition to low fuel prices."
FPL filed a request with the Florida Public Service Commission to reduce rates, saving a typical 1,000-kWh residential customer about $2.50 a month in 2016 compared with current rates. Businesses also should see lower rates, with anticipated savings ranging from 2 to 6 percent, depending on rate class and type of service.
"Our previous investments in smart technology and relentless focus on productivity are paying off for our customers," said Eric Silagy, president and CEO of FPL.
The company's 1,000-kWh residential bill is also the lowest among reporting utilities in Florida.
FPL said its 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.
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. With PSC approval, lower rates will take effect in January.