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FPL Proposes Refunding Nearly $400M in Federal Corporate Tax Savings to Its Customers

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FPL
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A one-time, $25 million refund will take effect in the month of January 2023, while additional savings will be phased in from 2023 through 2025.

Juno Beach - Friday September 23, 2022: Florida Power & Light has announced a plan to refund its approximately 5.8 million customers nearly $400 million in savings resulting from the new federal tax law. The savings are the result of a federal production tax credit (PTC) for the development of solar energy centers that today includes 50 operational sites.

FPL solar energy centers that began serving customers in 2022 are retroactively eligible for the PTCs.

As a result FPL is planning a one-time, $25 million refund in the month of January 2023. Also starting next year and through 2025, the company plans to phase in nearly $360 million in additional federal tax savings for future planned solar projects.

2023 Bills
FPL projects its typical 1,000-kWh residential customer bill to be $126.65 in January 2023.

(In Northwest Florida the company projects its typical 1,000-kWh residential customer bill be $156.85 because of a temporary hurricane surcharge for past Northwest Florida storms.)

All bills would increase again in February in the absence of the one-time refund due to an approved base rate adjustment and higher expected fuel costs in 2023, but still reflect lower base rates as a result of federal tax savings.

FPLNorthwest Florida
OriginalJanuary2023Estimate

New

January2023Estimate

February2023Estimate

Original

 January2023Estimate

New

January2023Estimate

February2023Estimate
$130.23$126.65$129.59$160.43$156.85$159.81
Note: Rates include a regulatory assessment fee and gross receipts tax but do not include utility taxes and/or franchise fees, which vary by area.Note: Rates include temporary hurricane surcharge as well as a regulatory assessment fee and gross receipts tax, but do not include utility taxes and/or franchise fees, which vary by area.

FPL's 2023 bill projections do not include higher-than-projected fuel costs in 2022, which the company has paid but are not yet reflected in bills. FPL expects to file a mid-course fuel correction by the end of this year or early next year, which will result in an additional adjustment to rates in 2023.

FPL does not profit from the fuel it purchases to generate electricity at power plants; it passes those costs directly to customers.

The company continues to monitor the still highly volatile fuel market to get a more accurate assessment of actual costs for 2022.

Natural Gas Prices
While natural gas prices have increased sharply and the fuel market remains volatile, FPL continues to improve the fuel efficiency of its power plants and invest in low-cost renewable energy that is reducing the fuel portion of customer bills. Since 2001, the modernization of FPL's power plant fleet has saved customers more than $12 billion in fuel the company did not need to buy, which equates to approximately $4.50 per month, or $55 per year, on the typical 1,000-kWh FPL residential customer bill. In fact, FPL's 50 solar energy centers helped customers avoid more than $200 million in fuel costs in just the first seven months of 2022 alone – which equates to roughly $3 per month on the typical 1,000-kWh FPL residential customer bill.

FPL is committed to reducing and eventually eliminating the fuel portion of customer bills, but it will take time. As natural gas costs are increasingly expensive, unstable and hard to predict, the company is working to reduce and, by no later than 2045, eliminate natural gas from regular operations – and the fuel portion of customer bills along with it.

FPL has long been committed to helping customers find new ways to reduce their energy use, which is the best way to save on electric bills. For energy savings tips that can lower residential bills by around $30 a month during the hottest months of the year, visit FPL.com/WaysToSave. Customers struggling to pay their bill can call FPL's dedicated customer service team who can work with them to identify payment arrangements and available assistance at the local, state and federal level.

Florida Power & Light Company
As America's largest electric utility, Florida Power & Light Company serves more customers and sells more power than any other utility, providing clean, affordable, reliable electricity to approximately 5.8 million accounts, or more than 12 million people.

FPL is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE). NextEra Energy is the parent company of NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage.

For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.