Understanding the Duke Energy Florida Settlement and Enhancing Utility Transparency

In August, the Florida Public Service Commission (PSC) approved a settlement between Duke Energy Florida and a number of other parties that will result in a rate increase of $262 million for Duke Florida customers in 2025-2026. While this settlement will result in a lower rate hike than what Duke initially requested, Duke’s rates remain significantly higher than national averages, and Duke Florida’s return on equity, which is a measure of profitability for the company, is also far above the national average of 9.6% for electric utilities. This recently-approved settlement agreement set Duke’s return on equity midpoint of 10.3%.

It’s worth noting that this settlement includes some positive changes, such as a limitation on disconnections when the heat index is 105 degrees or higher, and a reduction of reconnect fees to 0 during the term of the settlement. As part of the settlement, Duke will also provide credits to income-qualified customers if they receive a bill reflecting Duke’s $30 minimum bill to ensure they’re only charged for the customer charge and actual usage. However, Duke will continue to use the $30 minimum bill, which can also negatively impact families hoping to use solar energy as a way to save money on their electric bill.

Too often, the most critical stakeholders—such as ratepayers, low-wealth families, and communities disproportionately impacted by the climate crisis—are left out of conversations concerning their bills and energy sourcing. Despite the public being the most vulnerable to rising energy costs and harmful climate impacts, when utilities settle rate cases, those settlements limit opportunities for meaningful public participation. Settlements can also limit the openness and transparency of the regulatory process, sidelining Floridians who will bear the financial burden. In this rate case, Duke even opposed additional service hearings, further limiting the public’s ability to ask critical questions. 

In other states, rate cases incorporate transparency and engagement enhancing practices. Florida should adopt similar measures to ensure fair, open processes, including:

1. Recruiting stakeholders through a well-publicized process to ensure diverse representation.
2. Providing educational tools early in the process to establish a general understanding of the issues.
3. Evaluating and addressing barriers to stakeholder participation to foster inclusivity.
4. Clearly communicating the timeline and engagement steps to the public, including relevant milestones.

Public involvement is crucial to achieving energy equity and ensuring that rate changes are fair to the families who ultimately pay for them. Floridians deserve a transparent process where their voices are heard.