The price of fuels that utilities use to generate electricity is up across the globe. In fact, the price of natural gas – which FPL uses to power its plants – is now at its highest point since 2008, up more than 75% in just the past year.
Here’s what high natural gas prices mean for your electric bill based on the latest fuel market forecasts.
Projected 2023 bill increase – Customer bills are projected to increase beginning in January 2023 due to a previously approved base rate adjustment, but also largely due to higher fuel prices increasing the fuel portion of your bill.
Mid-course fuel increase – The volatility in natural gas prices has resulted in additional 2022 fuel costs that FPL has yet to include in customer bills. As of July, those additional fuel costs totaled $1.6 billion. In other words, the cost of fuel used to generate electricity at FPL power plants continues to be much higher in 2022 than initially projected. Rather than immediately adjust bills this year, we’re continuing to monitor the still highly volatile market in order to get a more accurate assessment of final fuel costs for 2022, with the goal of easing the impact for our customers. That means in addition to the projected 2023 bill increase, FPL will file a mid-course fuel correction by the end of the year or early next year, which will result in an additional adjustment to rates sometime next year.
The market for natural gas is unusually volatile right now. That means while we provided estimates for your 2023 bill, we know that those estimates are likely to change.
We recognize many Floridians are facing challenging times and no one wants to pay more for electricity. While natural gas prices have increased sharply and the fuel market remains volatile, FPL continues to improve the fuel efficiency of its power plants and invest in low-cost renewable energy that is reducing the fuel portion of customer bills.
In fact, FPL is committed to reducing and eventually eliminating the fuel portion of customer bills, but it will take time. As natural gas costs are increasingly expensive, unstable and hard to predict, the company is embarking on a Real Zero™ goal to reduce and, by 2045, eliminate natural gas from our regular operations – and the fuel portion of customer bills along with it.
Saving energy is the most effective way for customers to save on their electric bills. For energy savings tips that can lower your bill by around $30 a month during the hottest months of the year, visit FPL.com/WaysToSave.
We’ve proposed a plan to refund nearly $400 million in new federal tax savings to customers between 2023 and 2025, including a one-time, $25 million refund during the month of January 2023. The federal tax savings are due to solar energy centers we’re building throughout Florida. As we continue working to operate even more efficiently to drive costs out of our business, these new federal tax savings will begin to provide some relief to customers next year as high natural gas prices continue to put upward pressure on bills.