Florida Electricity Rate Increases to Look Out For in 2023
The price of common goods and services have been on a steep rise for the better part of 2022, and the cost of energy is no exception. Recent trends have already pointed to the fact that consumers are hit with rate hikes from their utility providers on a seemingly-annual basis, and, to no one's surprise, electricity prices in Florida will rise again in just a few days when the calendar turns to 2023.
What rate increases should I know about?
The two major energy providers in the state, Duke Energy Florida (DEF) and Florida Power & Light (FPL), have both been approved for base rate increases for 2023; residential customers can expect a rise of about 12% from DEF, and about 4% from FPL. Homeowners being served by Tampa Electric Co. (TECO) should expect their electric bill to be about 11% higher than it was in 2022.
Some utility providers in parts of the Sunshine State didn't wait until the new year to begin raising rates, such as LCEC in Southwest Florida unexpectedly imposing a power-cost adjustment (PCA) on their customers earlier this year over the summer, leaving many wondering why their bill suddenly spiked. Some homeowners even reported increases of more than $100 on their monthly electric bill. As the major providers' rates continue to rise, customers of smaller utilities and municipalities should be prepared for the trickle-down of these rate hikes.
Why are rates rising?
Electricity prices have been on the rise in many parts of the world in recent years, and this trend is expected to continue in the future. One of the main drivers of rising electricity prices is the cost of fuel. Many power plants rely on fossil fuels like coal, natural gas, and oil to generate electricity, and the cost of these fuels can fluctuate significantly over time. For example, if the price of oil goes up, it may become more expensive to generate electricity using oil-fired power plants, which could lead to higher electricity prices for consumers.
In addition to fuel costs, the need to upgrade and maintain infrastructure can also contribute to rising electricity prices. As power plants and transmission lines age, they may need to be replaced or repaired, which can be expensive, especially after heavy storm damage such as the impacts of Hurricane Ian and Hurricane Nicole. These costs are often passed on to consumers in the form of higher electricity prices.
What can I do?
In Florida, your electricity provider is determined by where you live, rather than consumers having the freedom to choose their utility company. In times of rate hikes and power-cost adjustments, that can leave the average homeowner feeling powerless and at the full mercy of their provider.
So what can consumers do to mitigate the impact of rising electricity prices? One option is to invest in energy-efficient appliances and lighting, which can help to reduce the amount of electricity needed in the home. Behavioral adjustments can help, too, such as carefully managing the usage of high-energy appliances and thermostat settings.
Another option is to consider implementing privately-owned renewable energy on your home such as rooftop solar panels. In addition to reducing dependence on your energy provider, retrofitting your home with solar panels can come with a multitude of benefits:
Cost savings: Solar panels can help to reduce or eliminate a homeowner's electricity bills, depending on the size of the system and the amount of energy it generates.
Environmental benefits: Solar panels generate electricity using clean, renewable energy from the sun, which can help to reduce a homeowner's carbon footprint and reduce their reliance on fossil fuels.
Increased property value: Solar panels can be a selling point for a home, as they may make the property more attractive to potential buyers and increase its value.
Tax incentives: Many governments offer incentives and tax credits to encourage homeowners to install solar panels, which can help to offset the initial cost of installation.
Our team at Transform Solar has combined experience of over a decade in the solar energy industry, and is built on the foundational pillars of honesty, integrity, quality, and education. Serving both residential and commercial customers, we are here to help aid you in your consideration of whether or not solar energy is right for you.
