Analysis of Florida IOU Fuel Costs and Rate Impacts on Residential Customers

This report explores several aspects of the relationships between fuel costs and the electricity rates charged by Florida’s major investor-owned utilities (IOUs), with a specific focus on natural gas costs and residential rates. It includes evaluations of: (i) how fuel costs have varied over time, (ii) the relative role of fuel costs as a component of residential retail rates, (iii) the effects of fuel costs and other factors on customer rate volatility, and (iv) how different future scenarios of natural gas prices and natural gas generation reliance would affect fuel costs and customer rates.