Categories: Florida

Florida Public Service Commission Denies FPL Time of Use Rate

Per PSC press release:

TALLAHASSEE — The Florida Public Service Commission (PSC) today found inconclusive evidence to support a new time-of-use (TOU) rate for Florida Power & Light Company’s (FPL) commercial customers. TOU rates provide customers with an opportunity to reduce their electric bill by shifting usage from the higher cost on-peak period to the lower cost off-peak period.

As an intervenor in FPL’s last rate case, the Association for Fairness in Ratemaking (AFFIRM) raised questions concerning the design of FPL’s TOU rates for commercial customers. AFFIRM represents a coalition of quick serve restaurants, such as Wendy’s and Pizza Hut, and believes FPL’s summer on-peak period is too long. FPL’s current summer on-peak period is from noon until 9 p.m. AFFIRM proposed a three-hour summer on-peak period, from 3 p.m. until 6 p.m.

Instead, the Commission instructed FPL to investigate whether fuel TOU factors based on marginal costs and/or summer and winter usage differentiation would provide benefits to customers and to the electric system. Results of FPL’s investigation will be included in the company’s testimony during the PSC’s fuel cost recovery hearing in November.

In its Final Order in the rate case, the Commission directed FPL to work with AFFIRM to address the TOU concerns. Today’s PSC decision is a result of the companies’ inability to reach an agreement.
The PSC facilitates safe and reliable utility services at fair prices for Florida’s consumers. Primary responsibilities include setting fair rates, encouraging competition, and monitoring for safety and reliability.
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