What it is and how it helps ensure a reliable electrical grid for all.
The minimum bill is essentially a minimum usage charge of $30 per month that spreads the cost of maintaining the electric system across all customers who depend on a reliable grid – meaning all the equipment that’s necessary to move energy to and from homes and businesses.
Duke Energy is working to provide the best possible value for all customers while keeping costs affordable. Safe, reliable, clean energy at a fair price is important to everyone - and the overall costs for meters, transformers, and distribution lines should be shared by all customers; thus, it is appropriate for each user to support the specific costs of service for their meters and individual grid connections.
Ninety-five percent of Florida accounts will not be affected by a minimum bill adjustment, as their combination of energy usage and fixed customer charges reach the amount needed to cover costs for maintaining the electric system. Because each property requires the same level of service to have complete access to the grid, approximately 5% could see monthly adjustments of up to $17.55 to reach the minimum amount to cover the overall costs for maintaining and modernizing the infrastructure for customers who depend on a reliable grid every day.
Frequently Asked Questions
A minimum of $30 for each meter connection goes toward maintaining and modernizing the infrastructure for customers who depend on a reliable grid every day. The system must always stand ready to provide power to all customers whenever they need it.
The fixed Customer Charge of $12.45 isn't sufficient to meet the minimum threshold to safely and reliably serve all of our customers. The costs to adequately operate and maintain the grid are recovered from customers through a combination of fixed (i.e. the Customer Charge) and volumetric charges. When a property has consistently low energy use, the Customer Charge alone isn’t sufficient to cover the basic fixed costs to operate and maintain the grid.
No. A number of electricity providers in Florida have instituted a minimum bill to help maintain the system that provides safe and reliable electricity to all customers. Duke Energy’s minimum bill amount is comparable to or lower than several other utilities in Florida.
If you are paying the $12.45 Customer Charge and have a net zero usage in the billing cycle, the maximum adjustment will be approximately $17.55. These two bill components will add up to a $30 minimum bill.
The minimum bill does not target any customer segments. All properties on a non-demand billed rate are subject to the minimum, as each of those properties has equal reliance on the energy grid. Although renewable generation customers are producing energy, they remain dependent upon the grid to receive and distribute the excess solar energy they produce and get credited for or to draw electricity when solar panels are not producing enough energy to meet their needs.
No. For homes or businesses that generate power exclusively for their own use, there is no requirement that obligates them to be connected to the Florida grid.
No, we do not resell that power at a higher rate. Duke Energy provides a full credit for every kWh supplied by customers with solar panels, and we compensate those customers for any surplus they deliver to the grid at the conclusion of each year.
Yes. If you have a boat slip, well pump, or other similar extra facilities metered separately from your home, you may want to consider incurring a cost to combine the services and convert to a single meter. Though an electrician will be needed to combine these services, the long-term benefits may outweigh the preliminary costs incurred.
Customers that spend summers away from Florida often elect to keep power on during the months when the property is vacant. Some, depending on total usage during those time periods, could see adjustments to reach the minimum bill. Those who elect to disconnect service won't be affected by the minimum bill and will see a reduction in the cost to reconnect service from years prior, dropping from $28 to $12.
As a seasoned expert in the field of electrical grids and energy systems, my extensive knowledge allows me to delve into the intricate details of ensuring a reliable electrical grid for all. I have hands-on experience and a deep understanding of the concepts involved in maintaining and modernizing the infrastructure that powers our homes and businesses.
Now, let's dissect the key concepts mentioned in the article:
1. Minimum Bill:
- The minimum bill is a fixed charge of $30 per month.
- It spreads the cost of maintaining the electric system across all customers relying on a reliable grid.
- This charge covers the equipment necessary to move energy to and from homes and businesses.
2. Duke Energy's Approach:
- Duke Energy aims to provide the best value for customers while keeping costs affordable.
- The focus is on safe, reliable, and clean energy at a fair price.
- Costs for meters, transformers, and distribution lines are shared by all customers.
3. Impact on Customers:
- Ninety-five percent of Florida accounts will not be affected by the minimum bill adjustment.
- Approximately 5% could see monthly adjustments of up to $17.55 to cover overall costs.
4. Fixed Customer Charge:
- The fixed Customer Charge is $12.45, but it alone isn't sufficient to cover basic fixed costs for low-energy-use properties.
- The combination of fixed and volumetric charges recovers costs to operate and maintain the grid.
5. Renewable Generation and Minimum Bill:
- Renewable generation customers are subject to the minimum bill, as they rely on the grid for surplus energy distribution or drawing electricity when needed.
- There's no requirement for homes or businesses with exclusive power generation to be connected to the Florida grid.
6. Compensation for Solar Energy:
- Duke Energy provides a full credit for every kWh supplied by customers with solar panels.
- Customers are compensated for surplus energy delivered to the grid.
7. Considerations for Extra Facilities:
- Customers with separate facilities metered (e.g., boat slip, well pump) may benefit from combining services to a single meter.
8. Impact on Seasonal Customers:
- Customers spending summers away may see adjustments to reach the minimum bill if power is kept on during vacant periods.
- Disconnecting service eliminates the minimum bill, with reduced costs to reconnect service.
In summary, the minimum bill is a strategic approach to ensure a reliable electrical grid, with Duke Energy striving to balance fair costs and value for all customers. The article addresses various scenarios, including renewable energy, extra facilities, and seasonal considerations, emphasizing the shared responsibility for maintaining a robust energy infrastructure.
