Florida Power and Light (FPL) announced that in 2023 its customers should expect three separate price increases in their current household energy bill. Switching to a renewable energy source like Solar Energy relieves your household from worrying about energy bill increases.
Solar Energy users will not encounter price fluctuation because renewable resources do not face changes in their accessibility. In contrast, those who rely on natural gas, a depleting nonrenewable resource, are dealing with a fluctuating, mainly increasing market.
Nonrenewable Energy Bills Will Continue to Increase
The power company’s customers have guaranteed a more expensive utility bill this year. Some customers may need to realize that their energy bills will continue to increase as natural gas depletes. FPL admits that the three energy bill increases are ultimately due to the “volatile” market for natural gas.
It is hard to place expectations on the utility bill of a nonrenewable resource. FPL admits that as far as the “provided estimates for your 2023 bill, we know that those estimates are likely to change.” The only guarantee is that nonrenewable energy bills will continue to increase.
Opting for a renewable energy source ensures the same energy bill for years and a return on your investment.
3 Reasons for Energy Bill Increases
Besides the already fluctuating natural gas market, other factors are affecting Florida Power and Light’s energy bill increase in 2023.
- The Inflation Reduction Act
In August, The Inflation Reduction Act was signed into law. The Palm Beach Post explains that this act would allow “utilities to receive tax credits on construction of and energy production from renewable energy facilities.”
The Palm Beach Post lets the public know that to manage this, FPL had asked the Public Service Commission to “allocate the tax credit in installments, first as a one-month discount on customer bills and the rest as a rate reduction spread out over the next few years.”
As a result of the installment system, the “refund would mean a $5 savings for the typical 1,000-kilowatt-hour customer bill in January, bringing the increase instead to $125.39. But in February, the bill for the typical customer would be right back up to $129.59, according to FPL.”
- Base Rate Adjustments
The power company has been working on completing a base rate adjustment that will provide an energy bull increase just in time for the first month of the new year. The pre-approved base rate adjustment was deemed necessary to combat fuel price increases.
This adjustment would mean that “a 1,000 kwh monthly bill would go from $120.67 in December to $130.23 the next month.”
Mid Course Fuel Corrections
Florida Power and Light routinely completes “mid course fuel corrections.” These corrections are performed to evaluate energy costs and then adjust rates as necessary. In addition to the pre-approved base rate adjustment, FPL will introduce further price adjustments going into 2023.
Ensure a Consistent Energy Bill
While Florida Power and Light says it is “committed to reducing and eventually eliminating the fuel portion of customer bills,” the natural gas market will continue to face volatility as it is a nonrenewable resource.
The transition to a renewable energy source like Solar energy offers many benefits, especially to your pockets. Solar panels are an instant return on your investment. Avoid energy bill increases.
At Bison Roofing and Solar we would be more than happy to help you lock in a price for your household’s energy bill for years to come. We have successfully completed over 500 installations and hold a Google Rating of 4.7. Let our experts help you to keep more money in your pocket. If you are interested in getting started, contact us today!
