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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
April 25, 2024 |
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TO: |
Office of Commission Clerk (Teitzman) |
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FROM: |
Division of Economics (Smith II, Hampson) Office of the General Counsel (Stiller, Thompson) |
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RE: |
Docket No. 20240025-EI – Petition for rate increase by Duke Energy Florida, LLC. |
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AGENDA: |
5/7/24 – Regular Agenda – Tariff Suspension – Participation is at the discretion of the Commission |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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06/03/24 (60-day Suspension Date) |
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SPECIAL INSTRUCTIONS: |
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This proceeding commenced on April 2,
2024, with the filing
of a petition for
a permanent rate
increase by
Duke Energy Florida, LLC (DEF or Company).[1]
The Company is engaged
in business as a public utility
providing electric service as defined
in Section 366.02, Florida
Statutes (F.S.), and is
subject to the jurisdiction of
the Commission. DEF provides
electric service to approximately
two million retail customers
in Pinellas, Pasco, Orange, Osceola, and Seminole
Counties.
DEF has requested an
increase in its retail rates
and charges to generate $593 million
in additional gross annual revenue,
effective January 1,
2025, $98 million, effective January 1, 2026, and $129
million, effective January 1, 2027. DEF asserts
that the combined
increases will
allow the
Company to earn a
return on equity of 11.15
percent. The Company based
its requests on projected test years
ending December 31,
2025, December 31, 2026, and December 31,
2027. DEF stated that
these test years are the
appropriate periods to be utilized because they
best represent expected future operations in the period immediately after any
new base rates go into effect. In total, the Company is requesting an $820
million base rate increase. DEF did not request any interim rate relief.
In DEF’s most recent base rate proceeding in Docket No. 20210016-EI,
the Commission approved a settlement agreement which authorized a revenue
increase of $67 million effective January 1, 2022, a revenue increase of $49
million effective January 1, 2023, and a further revenue increase of $79
million effective January 1, 2024.[2]
The
settlement agreement established base rates through the last billing cycle in
December 2024.
On February 16, 2024, the Commission acknowledged the Office of
Public Counsel’s notice of intervention in this proceeding.[3]
On April 19, 2024, Florida Rising, Inc.; League of United Latin
American Citizens of Florida; Florida Industrial Power Users Group; Florida
Retail Federation; and Sierra Club were granted intervention.[4] On April 24, 2024, White Springs Agricultural Chemicals, Inc.
(White Springs) and Nucor Steel Florida, Inc., were granted intervention.[5] On April 23, 2024,
Southern Alliance for Clean Energy filed its Petition to Intervene.[6] On April 24, 2024,
Americans for Affordable Clean Energy, Inc.; Circle K Stores, Inc.; RaceTrac
Inc.; and Wawa, Inc. filed a collective Petition to Intervene.[7] A hearing has been
scheduled for August 12-16, 2024. August 19-23, 2024, have also been reserved,
if necessary.[8]
This recommendation addresses the suspension of the requested permanent rate increase. The Commission has jurisdiction over this matter pursuant to Sections 366.06(2) and (4), F.S.