Duke Energy’s Base Rate Change Explained

In Florida, energy rate changes can catch homeowners off guard, especially when it seems like every year comes with a new adjustment. Duke Energy Florida recently announced an upcoming change to its base rates, set to take effect in 2025.

While this might initially sound like bad news for your electric bill, not everyone will end up paying more. In fact, some customers could see lower bills. Here’s what you need to know about Duke Energy’s base rate changes and tips to keep your energy expenses in check.

Duke Energy’s 2025 Rate Increase Proposal

Duke Energy has proposed a base rate increase starting in 2025. This is part of a three-year plan to cover costs related to infrastructure improvements and the building of 14 new solar plants between 2025 and 2027.

For an average household using about 1,000 kilowatt-hours (kWh) of electricity, the increase in 2025 would add roughly $16.48 to the monthly bill. This increase will be followed by smaller hikes in 2026 and 2027, adding $2.73 and $2.93 per month, respectively. These adjustments are intended to fund important upgrades, but customers will feel it in their wallets.

However, despite the base rate increase, Duke Energy has emphasized that some customers' energy costs could go down because of other changes planned for the same period. This is where things get interesting for Florida residents.

Why Your Energy Bill Might Not End Up Higher

Duke Energy’s base rate increase seems like a surefire way to increase energy bills, but the company timed the increase to coincide with plans to lower fuel costs in 2025. This is possible thanks to the fuel under-recovery, storm restoration cost recovery, and legacy purchased power contracts expiring at the end of 2024.

In addition, Duke Energy’s continued commitment to solar investments has already resulted in the company passing along $56 million of corporate tax savings from the Inflation Reduction Act to customers in 2023. Rates also went down in 2024 due to falling natural gas cost projections.

So, while the base rate itself is going up, a combination of expiring fuel and storm recovery costs, tax credits, and lower natural gas prices might result in only a minor increase — or even a slight reduction — in your energy bills in 2025.

Schedule Services Today!

866-238-3243

6 Tips To Lower Your Energy Costs

Even with all these factors, it’s wise to control your energy usage wherever possible. Small changes around the house can lead to noticeable savings on your utility bill. Here are six practical tips to reduce your energy consumption:

1. Use energy during off-peak times: Many Duke Energy customers are on time-of-use plans where electricity is cheaper during certain hours. Check your local schedule and adjust your usage of high-energy appliances accordingly.
2. Maintain your HVAC system: Your air conditioner is the single largest contributor to your electricity bill. Regular maintenance, such as changing the air filter and scheduling seasonal tune-ups, helps your system run more efficiently.
3. Unplug electronics when not in use: Devices like phone chargers, computers, and TVs draw power even when turned off. Unplug them or use power strips to shut off multiple items at once.
4. Upgrade to energy-efficient appliances: Look for the ENERGY STAR® label when replacing old appliances. This will help you use less electricity without sacrificing performance.
5. Replace your thermostat: A smart thermostat optimizes HVAC performance, reducing energy waste when you’re away or sleeping.
6. Seal windows and doors: Gaps in your home’s exterior walls allow heat gain in the summer and heat loss in the winter. Caulking and weatherstripping these gaps keep your home comfortable and lower your energy bills.

Looking for Energy Savings? We Can Help!

When it comes to saving energy, every little bit helps. Hoffman Electrical & A/C has been helping Tampa-area homeowners lower their energy costs since 1989. As a family-owned and -operated business, we pride ourselves on providing expert electrical and HVAC services that can make a real difference in your home’s energy usage.

Contact us today to schedule energy-saving HVAC services in Tampa, FL.