Florida PSC Approves Customer Solar Rate Increase for 300 MW of Duke Energy Projects
Florida utility regulators have approved a base rate increase to help Duke Energy fund four utility-scale solar energy projects in the Sunshine State.
The Florida Public Service Commission OK’d the cost recovery for the first phase of the Solar Base Rate Adjustment plant. Duke Energy Florida filed the request in February.
The new rate will impact Duke Energy Florida customers in Madison, Hernando, Sumter and Jefferson counties.
The utility is building close to 300 MW of solar capacity by sometime in 2026 although some could be completed later this year. The projects are all estimated at 74.9 MW and include Sundance in Madison County, Rattler in Hernando County, Half Moore in Sumter County and Bailey Mill in Jefferson County.
The approved annual revenue requirement for the new solar generation is about $73.3 million. Thus, most residential customers in those counties, averaging about 1,000 kWh per month in consumption, will pay an extra 9 cents base rate per project.
However, according to Duke Energy Florida, the base rate hikes will be offset by 17 cents per project due to reduced natural gas consumption from power plants. Overall the financial estimate for solar project benefits is more than $924 million, including avoided costs and tax credits.
Duke Energy Florida customers also received rate decreases approved by PSC last year and taking effect in January.
The utility previously has installed 10 Duke Energy Florida Clean Energy Connection solar farms which are all operational. Another 750 MW of Duke Energy’s utility-scale solar projects are planned throughout the state.
