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FPL revises its fuel cost forecast, customers to see lower electric rates in 2007

Oct 24, 2006

JUNO BEACH, Fla. – Florida Power & Light Company announced today that it expects to lower customer’s rates by nearly 5 percent starting next year, more than doubling the 2007 rate reduction it forecast in early September. 

The announcement follows a revision to its 2007 fuel cost forecast filed with the Florida Public Service Commission today, which reflects the recent drop in natural gas and oil prices in 2006 and 2007.

“Our adjusted 2007 fuel forecast is a reflection of what’s happening in fuel markets,” said Armando Olivera, president of FPL.  “We are delighted that oil and natural gas prices have gone down and hopeful that we have seen a peak in the market.  We have to be mindful, however, that certain conditions such as a severe cold winter in the U.S. or tensions in oil producing regions could drive prices up again.”

FPL said it now forecasts its rates for residential customers to decline from $108.61 to $103.51 per 1,000 kilowatt hours (excluding certain local fees and taxes) starting in January 2007.  Business customers can expect a similar reduction.

FPL’s filing today is in accordance with the PSC-prescribed process to adjust annually the utility’s fuel charge. This process provides price stability for customers throughout the year, and customers pay only for the fuel used to generate electricity.  FPL makes no profit on this portion of the electric bill.

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