Duke Florida to Use $223 Million From Federal Tax Savings to Pay Storm Costs

The Florida Public Service Commission on June 11 approved an agreement allowing Duke Energy Florida LLC to use savings from the 2017 federal tax reforms to cover the costs of restoring power after hurricane Michael, avoiding a surcharge to the utility’s customers.

Duke Energy will use $223.5 million for the costs incurred from the October 2018 category 5 storm, which caused widespread damage to the utility’s Northwest Florida service area.

In May, the regulator approved a settlement agreement allowing Duke to use $484 million from the same tax savings to cover costs incurred from the 2017 Hurricane Irma and Nate and also replenish its hurricane reserve fund.

The federal tax overhaul slashed the corporate income tax rate to 21 percent from 35 percent, effective Jan. 1, 2018. As a result of the agreements, customers of Duke will not face bill increases to recoup storm costs.

Duke Energy Florida is a subsidiary of Duke Energy Corporation.