Florida Power & Light Company issued bonds to finance the cost of restoring power during the 2004 and 2005 hurricane seasons, which have been paid for through a storm charge on the bill. This charge, a separate line item on the bill, has been adjusted up and down periodically, subject to approval from the Florida Public Service Commission.
The storm bonds will be fully paid on Aug. 1, 2019. As a result, the storm charge will be removed from customer bills. There will also be a customary true-up that will either result in a charge or refund on a future bill.
We will communicate to customers the result of the true-up as soon as we know more.
No. The “storm charge” only accounts for the 2004 and 2005 hurricane seasons.
It was not used to pay for Hurricane Irma. FPL used federal tax savings to pay off the $1.3 billion cost of responding to that massive storm, avoiding a rate increase for customers.
The cost of responding to Hurricane Matthew (2016) was paid for through a separate temporary, 12-month surcharge on customer bills, and not through the “storm charge.”
The storm charge is based directly on a customer’s monthly electric usage. In other words, if a customer uses more electricity in a given month, the storm charge is higher and vice versa.
A true-up reflects the difference between the amount of money FPL projects to collect from customers, and the amount the company actually collects. In this case, the final storm charge true-up would reflect the variance from June 1 to July 31.
Therefore, if customers’ collectively use more electricity than projected and FPL collects more money than projected, the true-up would result in a one-time refund to customers.
Conversely, if customers’ collectively used less electricity than projected and FPL collects less money than projected, the true-up would result in a charge to customers.