TALLAHASSEE – Florida Power & Light expects to seek approval to collect about $1.2 billion from customers in 2025 to cover costs of restoring power after hurricanes Debby, Helene and Milton and to replenish a storm reserve fund.
FPL will seek to recover an estimated $800 million stemming from Hurricane Milton, which made landfall Oct. 9 in Sarasota County as a Category 3 storm and crossed the state, according to a quarterly financial report that the utility’s parent company, NextEra Energy, filed Wednesday with the U.S. Securities and Exchange Commission. FPL also had an estimated $300 million in costs from Debby and Helene.
The Florida Public Service Commission would have to sign off on FPL recovering the money, but utilities have regularly received such approvals in the past. In addition, storm-cost recovery has been contemplated in broader rate agreements approved for FPL and other companies. Storm costs are essentially a temporary add-on to customer bills.
Duke Energy Florida and Tampa Electric Co. also had to undertake massive power-restoration efforts after this year’s hurricanes, making it likely they will seek to recover costs from customers.
The NextEra Energy quarterly report said FPL is expected to file a petition “in fourth quarter 2024” with the Public Service Commission, though it did not give a specific date.
During an earnings call Wednesday, NextEra Energy Chairman, President and CEO John Ketchum said Milton caused about 2 million FPL customers to lose power, while Helene knocked out electricity to about 680,000 customers.
Milton slammed FPL customers on both coasts, including in Sarasota County, and spun off damaging tornadoes in other areas.
Helene made landfall Sept. 26 in Taylor County, after causing widespread damage in other coastal areas as it moved up the Gulf Coast. Debby, which made landfall in August in Taylor County, was a smaller storm and had less effect on areas served by FPL.
Major expenses during hurricanes include such things as bringing in crews to help quickly restore power. Utilities have what are known as “mutual aid” agreements with utilities in other states, and Ketchum said FPL received assistance from 41 states and Canada for Milton and Helene.
Ketchum said investments in such things as underground power lines helped reduce outages and that FPL power plants and solar facilities “sustained no significant damage.”
“For nearly two decades, FPL has invested significantly in building a stronger, smarter and more storm-resilient grid,” he said. “The performance of our system demonstrates that FPL’s hardening, undergrounding, automation and smart grid investments are providing significant benefits to our customers.”
FPL this spring finished recovering about $1.3 billion in storm-restoration costs primarily related to hurricanes Ian and Nicole in 2022, according to Wednesday’s quarterly report.
Before Hurricane Debby, FPL had a storm reserve of about $80 million. The utility would like to replenish the reserve with about $150 million.
