Duke Energy Florida seeks rate decreases amid data center tariff dispute

Duke Energy Florida has filed a request with the Florida Public Service Commission to lower electricity rates effective January 2027. If approved, residential customers using 1,000 kWh per month could see a $0.71 monthly reduction. Commercial and industrial customers may see decreases between 0.8% and 3.6%. The company attributes the potential reduction to cheaper fuel costs and a tax strategy that allows them to bypass a previously scheduled 2% base rate increase.

Simultaneously, the utility is facing scrutiny regarding a proposed tariff for exceptionally large customers, such as data centers. Critics, including the Office of Public Counsel and Florida Rising, argue that Duke’s proposal may not comply with Senate Bill 484. This law requires major customers to pay the full cost of service to prevent those expenses from being passed on to residential ratepayers. The dispute highlights growing concerns over energy affordability as the rise of AI and cloud computing increases demand for grid infrastructure.