KEY POINTS
- Duke Energy requests $1.1 billion recovery, filing addresses costs from three major hurricanes.
- Residential bills to rise by $21 per 1,000 kWh, rate adjustment effective March 2025 through February 2026.
- Other companies, including Florida Power & Light, have also filed for recovery.
Duke Energy, one of the largest utility companies in the United States, has filed a request with the Florida Public Service Commission (FPSC) to recover $1.1 billion in costs incurred during emergency responses to Hurricanes Debby, Helene, and Milton.
These storms caused widespread damage to Duke Energy’s infrastructure, leaving tens of thousands of customers without power and requiring extensive restoration efforts.
The company’s proposal includes a temporary rate increase for residential customers beginning in March 2025, adding approximately $21 per 1,000 kilowatt-hours (kWh) to monthly bills. The additional charge would remain until the end of February 2026.
Hurricanes’ devastating impact on Duke Energy’s infrastructure
Duke Energy’s service areas in North and South Carolina experienced significant storm-related disruptions, with miles of transmission lines and power poles damaged or destroyed.
These severe weather events forced the utility to deploy hundreds of repair crews and seek assistance from neighboring states and Canada.
According to Reuters, the company highlighted that operating and maintenance (O&M) costs skyrocketed due to the extent of the damages, which included repairs to transmission lines, substations, and other critical infrastructure.
“This filing reflects the financial burden of ensuring rapid restoration of power and the safety of our communities,” Duke Energy said in a statement.
Proposed rate hike to fund restoration costs
If approved, the proposed rate adjustment would begin in March 2025 and help Duke Energy recover expenses related to deploying resources and equipment across its service territories.
Residential customers consuming 1,000 kWh per month would see their bills increase by $21 compared to February 2025 rates.
Duke Energy emphasized that the temporary rate adjustment is essential to maintaining the reliability and sustainability of its operations in the aftermath of unprecedented weather challenges.
Duke Energy is not alone in seeking recovery for storm-related expenses. In October, Florida Power & Light Company, a subsidiary of NextEra Energy, filed for $1.2 billion in hurricane restoration costs following damage caused by Hurricane Milton.
Both companies are addressing the growing financial strain severe weather events place on utilities, as climate change leads to more frequent and intense storms.
