Case Background
On March 3,
2025, Duke Energy Florida, LLC (Duke or the utility) filed a petition to close
to new customers, and ultimately terminate, its optional My Energy Bill+
Program with Income Qualified Component (My Energy Bill+ Program) contained in
Tariff Sheet Nos. 6.415 – 6.417. These tariff sheets are contained in
Attachment A to this recommendation. The utility states that it wants to
terminate the My Energy Bill+ Program due to a lack of customer interest. The
My Energy Bill+ Program is a fixed bill program that allows Duke to have
limited control of a participating customer’s thermostat during specified
demand response events. In exchange for this control, participating customers
pay a fixed monthly bill for a year with no true-up costs. The bill calculation
includes a usage adder of six percent during the first year of participation, plus
a risk adder of four percent, which is lower than Duke’s FixedBill tariff. The
My Energy Bill+ Program was approved in Order No. PSC-2022-0246-TRF-EI.[1]
If the petition
is approved, Duke states that it would work with enrolled customers to
transition them to the FixedBill program, Budget Billing, or return them to
their previous standard rate schedule. Once all customers have been transitioned
out of the My Energy Bill+ Program, Duke requests that the Commission grant staff
administrative authority to approve tariff sheets to terminate the program.
Duke’s current
FixedBill tariff is a flat bill program that allows participating customers to
receive a fixed monthly bill for 12 months, which is calculated using the prior
12 months of actual usage data, applying weather normalization, plus an
additional risk and usage adder. The FixedBill tariff was first approved by
Order No. PSC-2017-0451-AS-EU and became effective on March 1, 2018.
During the
evaluation of the petition, staff issued a data request for which responses
were received on April 7, 2025. The Commission has jurisdiction over this
matter pursuant to Sections 366.03, 366.04, 366.05, and 366.06, Florida
Statutes (F.S.).
Discussion
of Issues
Issue 1:
Should the Commission approve Duke’s request to
close the My Energy Bill+ Program to new customers and grant staff
administrative authority to approve tariff sheets to terminate the program once
all customers have been transitioned to an alternative rate schedule?
Recommendation:
Yes. The Commission should approve Duke’s request to
close the My Energy Bill+ Program to new customers as of August 1, 2025 and
approve the tariffs contained in Attachment A to the recommendation.
Additionally, the Commission should grant staff administrative authority to
approve tariff sheets to terminate the program once all customers have been
transitioned to an alternative rate schedule. (Ward)
Staff Analysis:
My Energy Bill+ Program Participation
Duke launched its first My Energy Bill+ offers to
customers in November 2022. In its petition, the utility stated that additional
offers were sent from March to May 2023. Duke stated that after sending 358,164
customers multiple direct marketing offers, including by mail and by email,
only 142 customers enrolled in the program. Duke stated that the cost of the
marketing offers was $295,695 and the costs were recovered below-the-line. Currently,
there are 130 customers enrolled in the program. Due to lack of customer
interest in the My Energy Bill+ Program, Duke seeks to close the program to new
customers and ultimately terminate the program.
For participating in the program, Duke also offered income
qualified customers a free smart thermostat and installation, of which Duke
completed 41 installations. The utility asserted that customers who received
smart thermostat installations through the program will continue to own them if
the My Energy Bill+ Program is terminated.
The utility stated that the annual program costs for the
My Energy Bill+ Program are $288,510 for year 1, $379,650 for year 2, and
$459,275 for year 3.
The utility also stated that program costs are expected to increase annually
based on vendor costs to support smart thermostat enrollment. All program costs
are recorded below-the-line.
Closure and Termination of My Energy Bill+
Program
In its petition, Duke stated that if the program is closed
it would work with enrolled customers to transition them to an alternative rate
schedule. Customers would be transferred to the FixedBill program, Budget
Billing, or returned to their previous standard rate schedule. Duke stated that
it plans to allow customers to complete their current My Energy Bill+ 12-month
service agreement. Two months
before the end of the agreement period, customers will receive an email from
the utility informing them that the program will be terminated and other
billing options are available. The utility stated that it expects all customers
to be transitioned out of the My Energy Bill+ Program by October 2026.
Additionally, Duke requests that the Commission grant
staff administrative authority to approve tariffs to terminate the program
after all customers have been transitioned out of the My Energy Bill+ Program.
If this recommendation is approved, staff will approve tariffs to terminate the
My Energy Bill+ Program once staff has confirmed that all customers have been
removed from the rate schedule. The utility stated that it will notify staff
once all customers have been removed from the My Energy Bill+ Program,
including details about the new billing or payment option selected by each
customer.
Conclusion
Based on the petition and the utility’s response to
staff’s data request, staff believes that the Commission should approve Duke’s
request to close the My Energy Bill+ Program to new customers as of August 1,
2025 and approve the tariffs contained in Attachment A to the recommendation.
Additionally, the Commission should grant staff administrative authority to
approve tariff sheets to terminate the program once all customers have
transitioned to an alternative rate schedule. Due to the lack of customer
interest and the availability of alternative fixed bill and budget billing rate
schedules, staff believes the proposal is reasonable.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If no protest is filed by a person whose
substantial interests are affected within 21 days of the issuance of the Order,
this docket should be closed upon the issuance of a Consummating Order. However, if a timely protest is filed in this
docket, this docket shall remain open, and the current tariff remain in effect,
until the resolution of the protest. (Brownless)
Staff Analysis:
If no protest is filed by a person whose substantial
interests are affected within 21 days of the issuance of the Order, this docket
should be closed upon the issuance of a Consummating Order. However, if a timely protest is filed in this
docket, this docket shall remain open, and the current tariff remain in effect,
until the resolution of the protest.
