FPL outlines plan to pay for significant restoration efforts after four hurricanes slam Florida in 14 months

JUNO BEACH, Fla., Oct. 29, 2024 /PRNewswire/ -- Florida Power & Light Company (FPL) announced today that they have requested approval from the Florida Public Service Commission (PSC) to impose a temporary surcharge on customer bills starting in 2025. This move aims to recover the substantial costs incurred during the restoration efforts following four hurricanes that wreaked havoc across Florida within the last 14 months.

FPL's Plan: In their filing with the PSC, FPL is seeking reimbursement for the restoration expenses associated with Hurricanes Debby, Helene, and Milton, which occurred earlier this year. Additionally, the company is asking for $150 million to replenish its storm reserve, which was significantly depleted by Hurricane Idalia last year and again after Hurricane Debby in August. Should the PSC approve this proposal, the temporary surcharge would cover roughly $1.2 billion in restoration costs and could potentially increase the average monthly bill for a typical 1,000 kWh residential customer by approximately $12.02 per month from January through December of next year.

How We Got Here: Hurricane Idalia, a Category 3 storm, made landfall in Florida in August 2023. This year, Hurricane Debby, a Category 1 storm, hit in August, followed closely by Hurricanes Helene (Category 4) and Milton (Category 3), which battered the state just two weeks apart in September and October. These four hurricanes resulted in over 3 million outages among FPL customers, causing widespread destruction due to strong winds, storm surges, and even several unusually powerful, long-track tornadoes in the case of Hurricane Milton.

Rapid Response: Following each hurricane, FPL mobilized an extensive workforce of thousands of restoration personnel from across the United States. These teams worked tirelessly around the clock to restore power as swiftly as possible. Importantly, FPL's ongoing investments in building a stronger, smarter, and more resilient energy grid helped avoid nearly 900,000 outages and facilitated quicker restorations.

By the Numbers:

• Over 3 million outages
• More than 52,000 men and women in the restoration workforce
• Nearly 900,000 outages avoided thanks to smart grid technology
• Timeframe for essentially completing restoration:
  • Idalia (2023) (Category 3): 1 day
  • Debby (2024) (Category 1): 1 day
  • Helene (2024) (Category 4): 3 days
  • Milton (2024) (Category 3): 5 days

A Word From FPL President and CEO Armando Pimentel: "In the wake of each of these hurricanes, FPL worked diligently to restore power to our customers as quickly as possible. We understand that these restoration costs are ultimately borne by our customers, which is why we continue to invest in strengthening our grid and implementing smart grid technologies. These efforts not only prevent many outages but also speed up restoration times, reduce overall costs, and help our customers recover more rapidly, whether it’s getting kids back to school or restarting Florida’s economy."

Estimated 2025 Bills: Even with the temporary surcharge, FPL bills in 2025 are expected to remain significantly lower than the national average.

Typical 1,000-kWh Residential Customer Bill
FPL		FPL Northwest
Current	Jan. 2025 (proposed)	Current	Jan. 2025 (proposed)
$121.19	$133.99	$135.38	$143.45
Note: Jan. 2025 bill includes proposed storm surcharge and other annual adjustments to cost-recovery clauses.

Why a 12-Month Surcharge? Electricity bills in Florida typically do not account for the costs associated with responding to hurricanes and tropical storms. Instead, a temporary surcharge is applied after such events. Implementing this surcharge over a 12-month period instead of spreading it out over a longer timeframe minimizes the risk of overlapping charges if additional storms impact Florida in 2025.

Editor's Note: Download visuals of FPL's hurricane restoration efforts.

Florida Power and Light Company:
As the largest electric utility in the U.S., FPL serves more customers and delivers more electricity than any other utility, providing clean, affordable, and reliable power to approximately 5.9 million accounts, or more than 12 million people. FPL operates one of the most fuel-efficient and environmentally friendly power generation fleets in the country. In 2022, FPL received the ReliabilityOne® National Reliability Award for the seventh time in the last nine years. The company was also recognized by Escalent in 2022 as one of the most trusted U.S. electric utilities for the ninth consecutive year. FPL is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE), a leading clean energy company known for its commitment to sustainability, corporate responsibility, ethics, and diversity. NextEra Energy is also the parent company of NextEra Energy Resources, LLC, which, together with its affiliates, is the world's largest producer of renewable energy from wind and solar sources and a global leader in battery storage. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

SOURCE Florida Power & Light Company