Fuel charge

What the fuel charge is

The rate you pay per kWh is not a single number. It is built from several lines, and one of them is the fuel charge. Florida power plants run mostly on natural gas; when gas prices rise, the utility asks the Public Service Commission to adjust this line and the cost lands on your bill.

It is not profit for the company: by regulatory design it is passed through to customers without markup. But you do not control it either, and it can change more than once a year.

Why it matters in Florida

Florida depends on natural gas more than most states. That ties your bill to a market that has nothing to do with your home. Many people think they used more electricity when in fact the kWh simply got more expensive through this line.

Here is the link to solar: the energy your panels produce is credited under net metering at the full kWh value, including the fuel component. When that line goes up, the value of every kWh you produce goes up with it. That is what we mean by “a bill that stops rising”: not that rates freeze, but that you stop being exposed to them.

Common mistake

Comparing this year’s bill to last year’s in dollars only and concluding “I use more.” Check kWh and the fuel charge separately. If kWh are the same and the amount went up, the problem is the rate, and no change in habits will fix it. The guide the utility minimum charge explained breaks down every line.