According to recent news, Florida Power and Light customers are likely to see an 18% increase in electricity costs while several other energy companies are increasing rates around 7%. Rising natural gas prices are being cited as the major contributor to increasing utility costs and experts say Florida residents should plan for higher bills through 2022.
Which Electric Companies Are Raising Rates?
Natural gas is the preferred source for most of the major utility companies in Florida because it produces fewer greenhouse gasses compared to other fossil fuels. In fact, Florida Power and Light and Duke Energy almost exclusively rely on natural gas to produce electricity for their 2.7 million customers across the state.
Over the past year, natural gas prices and other fossil fuels have increased substantially, requiring utilities to raise rates in response. Experts warn that natural gas prices won’t be going down anytime soon and people should expect much higher utility bills through next year.
Why Are FP&L Electricity Costs Skyrocketing?
While all electricity companies are feeling the effects of higher natural gas prices, many FP&L customers are wondering why they are facing double-digit rate increases compared to others. In a recent meeting with state regulators, FP&L cited several reasons for rate hikes outside of natural gas prices including:
- The merge with Northwest Florida’s Gulf Power caused issues due to varying rates between providers
- FP&L rapid and expensive investments in clean energy sources
Regulators have approved a $692 million increase in base rates for FP&L customers that will span over four years. Aside from rising natural gas prices, additional rate increases will begin to go into effect starting January 2022.
How To Future Proof Your Electric Bill
Homeowner fears about rising electricity costs are justified; the average price per kilowatt-hour has almost doubled in the last decade and experts warn that trend is likely to continue.
However, there is some good news; homeowners don’t have to be dependent on fossil fuels to power their homes. Solar power is now more affordable than ever.
And we’re not talking about community solar programs or leased solar panels. Homeowners can finance or purchase solar panels for their homes and offset their electricity bills by 100%. This means no rate increases, ever. Just a lifetime supply of free, clean energy.
Solar panels also offer homeowners a level of energy independence they can’t get anywhere else, even during a blackout. Grid-tied solar systems also allow homeowners to get paid for extra energy produced. At the end of the day, solar panels don’t just future-proof electric bills, they will future-proof your entire home!
Interested in learning how much you switch to solar and avoid rising electricity costs? Request a free solar energy audit and find out!