Duke & TECO Storm Recovery Charges

PSC Greenlights Duke and TECO Storm Recovery Charges for 2024 Hurricane Season

In a recent decision, the Public Service Commission (PSC) has approved storm recovery charges submitted by Duke Energy and Tampa Electric Company (TECO) to offset expenses incurred during the 2024 hurricane season. The charges, aimed at recouping costs associated with storm-related damages and repairs, will impact residential customers of both utilities starting in March 2025, according to a report from Ohm Analytics.

For Duke Energy customers, the PSC’s approval means an additional $32.40 per month on the average residential bill for those using 1,000 kWh of electricity. This surcharge will remain in effect for 12 months, reflecting the utility’s efforts to recover costs tied to the destructive 2024 hurricane season. Meanwhile, TECO customers using the same 1,000 kWh per month will see their bills rise by $19.95, with the increase lasting 18 months. The differing durations and amounts highlight the unique financial burdens each utility faced in restoring services and infrastructure following the storms.

The decision comes as no surprise to industry observers, as utilities often seek PSC approval to pass storm recovery costs onto customers rather than absorbing them entirely. Hurricanes and severe weather events in 2024 likely strained both Duke and TECO’s resources, prompting the need for these temporary rate hikes. While the increases may spark concern among ratepayers already grappling with rising living costs, the PSC’s role is to balance the financial stability of utilities with the affordability of service for consumers.

For now, affected Duke and TECO customers should prepare for the new charges to take effect in March 2025. The temporary nature of the surcharges—12 months for Duke and 18 months for TECO—offers some relief, though the added costs may still prompt calls for greater investment in storm-resilient infrastructure to mitigate future recovery expenses.