Duke Energy Florida implements third rate reduction of 2026, saving customers an additional $6 over previous reductions
Press release from Duke Energy Florida
ST. PETERSBURG, Fla. – Duke Energy Florida will implement its third rate reduction of 2026 from June through September, lowering residential customer bills by a total of approximately $50, or 25%, for every 1,000 kilowatt-hours (kWh) of energy used, when compared to January.
Below is an outline of how these rate reductions have and will continue to appear on the bills of Duke Energy Florida’s typical residential customers using 1,000 kWh per month:
- February 2026: An approximately $33 decrease from the early removal of the storm cost recovery charge associated with the company’s response to hurricanes Debby, Helene and Milton
- March 2026: An approximately $11 decrease instituted by the company every March through November to help customers save money during times when energy use is typically higher
- June 2026: An approximately $6 decrease reflecting the difference between the storm cost recovery amount collected and the actual amount incurred by the company (effective through September 2026)
- Total: An approximately $50 decrease
“We know it feels like every bill is higher right now – from housing to groceries to power – and that can put a strain on families. We also understand that our customers depend on us to provide safe, reliable energy, day in and day out, at the lowest possible price,” said Melissa Seixas, Duke Energy Florida state president. “This is the third rate reduction for our customers this year, supporting our commitment to delivering positive outcomes that have a real, tangible impact on their wallets and in their lives.”
Duke Energy Florida customers – like all investor-owned utility customers – only pay for the actual costs associated with the company’s storm response. The Florida Public Service Commission (FPSC) recently approved a filing to true up the difference between the storm cost recovery charge amount collected (approximately $1 billion) and the actual amount incurred by the company (approximately $915 million) following the 2024 hurricane season. This true up will flow back to customers as a decrease in fuel rates from June through September 2026.
For 1,000-kWh residential customers, the true-up – combined with FPSC-approved recovery costs associated with the company’s newest solar energy site – will result in an approximately $6 net decrease on bills when compared to March through May 2026.
Commercial and industrial customers can also expect bill decreases ranging from 3.3% to 7.4% when compared to March through May 2026, though the specific impact will vary depending on several factors.
More savings:
Duke Energy Florida continues to identify new and creative ways to create additional savings for customers, including:
- Making efficiency improvements at many of its natural gas plants, saving customers $340 million in fuel costs.
- This translates to $10 savings on customers’ monthly bills.
- Completing four new solar energy sites – in Madison, Hernando and Sumter counties – saving customers another $1 billion from displaced fuel costs.
- Passing on $65 million in Inflation Reduction Act tax credits to customers, which will only increase as more solar energy sites come online.
- This saves residential customers at least $2.50 per 1,000 kWh.
“Duke Energy Florida continues to identify new and creative ways to create additional savings for customers”
That sounds heavenly Duke.
Here’s a summary of the key facts and criticisms around Duke Energy Florida’s rates:
The Rate Case
Duke Energy originally sought an $820 million increase from the Florida Public Service Commission — part of what consumer advocates called prioritizing profit over people.  The initial filing actually requested base rate revenue increases of $593 million in 2025, $98 million in 2026, and $129 million in 2027 — an average annual increase of about 4% — and sought a return on equity of 11.15%. 
The Settlement
After pushback, the final settlement came in at $727 million total (instead of the initially proposed $2.1 billion), with a return on equity set at 10.3%.  The agreement allows an average annual 2% bill increase over 2025–2027, composed of $203 million in base rate increases in 2025 and $59 million in 2026, plus additional increases tied to 12 new solar facilities coming online. 
The “Profiteering” Argument
Critics point to several issues:
• AARP Florida and other groups urged the Public Service Commission to scrutinize the increases, warning they would burden households already struggling with rising costs. 
• The original ask was enormous — Duke requested $503 million for 2025 alone before the settlement reduced it to $203 million. 
• The allowed return on equity (profit rate) of 10.3% is a regulated but still substantial guaranteed profit margin for a monopoly utility.
Duke’s Defense
Duke says it does not profit from increased fuel costs and that investments are directed at strengthening grid reliability and expanding solar, resulting in fewer outages and faster storm restoration.  For 2026, Duke announced a net bill decrease of roughly $44/month for typical residential customers, despite a base rate increase of about $7.54. 
Bottom line: The core complaint is that Duke, as a regulated monopoly, can seek large rate increases with customers having no alternative provider. Consumer advocates secured significant reductions from the original ask, but critics argue even the settled rates reflect a utility extracting excess profit from a captive customer base.