FPL | Description of the components of your bill
 

Description of the components of your bill

The following explains some of the charges that make up your electric bill. You can also click here to look at a sample bill with rollover descriptions of the various components.

Your electric bill includes the following charges:

Customer charge: A fixed monthly amount that covers the cost of service to the meter including installation and the administrative cost of billing an account. The customer charge is billed on all accounts regardless of electrical usage and is a component of the base rate.

Fuel charge: This reflects the cost of fuel required for producing and delivering each kilowatt-hour of electricity. The fuel cost is passed on directly to customers at no profit to FPL. Fuel costs are reviewed and approved by the Public Service Commission (FPSC) and the cost per kwh for fuel adjusts at least once annually. To learn more, view our fuel clause fact sheet.

In the 1970s, the FPSC mandated FPL to implement an “inverted rate” for residential customers to encourage energy conservation. Today, the rate reflects an additional penny on usage over 1,000 kwh.

Non-fuel charge: The non-fuel charge is also a component of the base rate. It reflects the non-fuel costs to produce and deliver electricity and environmental compliance programs. For non-demand customers, it also includes the costs of conservation programs. 

Like the fuel charge, this rate reflects an additional penny on usage over 1,000 kwh for residential customers.

Cost-recovery clauses: There are several cost-recovery clause amounts embedded in the demand charge or non-fuel energy charge – that is, they do not appear as individual line items on your bill. Each clause requires regular filings with the FPSC, which approves any adjustment to them. The annual adjustment of the cost-recovery clauses usually occurs each January.

  • Energy Conservation Cost Recovery Charge (ECCR): ECCR recovers the cost of FPL Demand Side Management programs that we offer. These FPSC- approved programs are designed to reduce electric demand and consumption which defers the building of new power plants, and help customers use electricity more efficiently in their homes and businesses.

  • Capacity payment recovery clause (CPRC): CPRC recovers the cost to FPL for purchasing generated electricity from co-generators. In addition, certain nuclear costs are recovered through the CPRC.

  • Environmental Cost Recovery Clause (ECRC): ECRC recovers costs not already included in the base rates that are incurred by FPL in order to meet environmental laws or regulations.

Storm charge: The storm charge is used to repay the bonds and taxes that we issued to recover the 2004 and 2005 hurricane restoration costs and to partially replenish the storm damage reserve fund to help cover the cost of future storms. Although the storm charge is designed to remain relatively stable over time, it is adjusted periodically to align with actual bond repayment costs.

Taxes: Depending upon where you live, your bill may include a franchise fee and utility tax, which vary by area, as well as sales tax and a gross receipts tax. We are required to collect these fees and taxes for distribution to the appropriate entities. We do not profit from these fees and taxes and do not establish the amounts.

  • Franchise charge: A monthly charge billed to recover fees paid to the city or county government for the right or privilege to utilize the private property of the city/county for the purpose of supplying electrical services.

  • Municipal tax: A tax levied by a local government on the customerís purchase of electricity and, if collected by FPL, remitted to the appropriate local government. The amount varies depending on the city and county.

  • Gross receipts tax: A 2.5% state tax on the customerís electric bill collected by FPL and remitted to the State of Florida.

Demand charge: This charge is applied to commercial accounts on a demand rate. The demand charge is the cost to supply the maximum amount of energy used on the account within a 30-minute interval during the billing period. For demand customers, this charge also includes the costs of conservation programs.