(The Center Square) — According to data from the Florida Public Service Commission, Florida’s electricity rates decreased slightly in July due to lower natural gas prices caused by increased production.
The PSC data on electricity rates are based on Florida households using 1,000 kilowatt hours per month and vary between providers.
The average bill for a Florida Power & Light ratepayer is $136 per month, while a Florida Public Utilities Company customer pays $175 per month.
The FPL recently announced that electricity rates for July would be reduced, giving consumers an extra $8 per month in their pockets.
This rate reduction may not last long for some Florida customers, as the People’s Gas System, Inc., a subsidiary of TECO Gas Operations, Inc., requested a rate hike in April.
Recently, the Public Service Commission held in-person and virtual meetings that ended on July 11 to discuss PGS’s proposed rate hike.
The company stated that the increase is necessary for the company to “earn a fair rate of return on its investment” and to recover costs associated with running the utility. Under the regulated monopoly model, utilities are guaranteed a rate of return on their capital investments.
Almost 500,000 residential, commercial, and industrial customers across 39 Florida counties could pay an extra 32.12% monthly.
Despite this, prices are projected to continue to decrease even more, according to the latest data from the U.S. Energy Information Administration. Natural gas production across the U.S. grew by 4% in 2022, and thanks to mild temperatures during the winter months, consumption was much lower, keeping prices stable.
Production on the Gulf Coast and Southwest region has increased significantly in the Haynesville Formation and Permian Basin. With both locations near export facilities, production is predicted to increase by 52% on the Gulf Coast and 50% for the Southwest region by 2050.
Natural gas is supplied to Florida via the 5,500-mile-long Gas Transmission Pipeline from Texas and the Gulfstream Pipeline that stretches from Mobile, Alabama, to Tampa Bay, with both pipelines almost at full capacity. Because of this, a third pipeline has been proposed that will include a hub to connect all three to increase supply.
