Fuel prices have dramatic impact on bills

It may not compare to the shock of filling up an SUV, but rising fuel costs have had quite an impact on electric bills.

Since 1999 — while the base rate portion of customers’ bills declined 13% — the fuel adjustment portion has more than doubled. At the beginning of 2005, the fuel charge of $40.09 was the highest ever. The overall result: a 29% increase in a 1,000-kilowatt-hour bill in just five years.

The costs of fuel required to operate our power plants has recently been at record highs. This is reflected in electric bills because FPL passes on its fuel costs directly to customers. The company makes no profit on fuel.

In recent years, the cost of clean-burning natural gas, which has become an increasingly large percentage of FPL’s fuel mix because of its low emissions, has tripled. The cost of residual oil has gone up even more.

The prices of fuels like oil and natural gas go up and down on a regular basis and are often highly volatile. For that reason, fuel costs are periodically reviewed (at least annually) and adjusted by the PSC, and the revised amount is shown on customers’ bills.