Clearwater residents who get their electricity from Duke Energy Florida could see slightly lower bills starting in January 2027.

Utility Files Request to Cancel Planned Rate Hike

The utility filed a request with the Florida Public Service Commission, or FPSC, on Thursday, asking the state regulator to approve a rate decrease. A typical residential customer using 1,000 kilowatt-hours per month would save $0.71 compared to their December 2026 bill, according to a company press release. The savings replace what was supposed to be a 2% base rate increase.

Multiyear Agreement Set Up Automatic Annual Increases

The FPSC approved a multiyear rate agreement in August 2024 that allowed Duke Energy Florida to raise base rates by an average of 2% annually from 2025 through 2027. The first two years brought increases of $203 million and $59 million in additional revenue, respectively. The 2027 increase is now off the table.

Tax Credit Strategy Behind the Savings

Duke Energy Florida said it found a way around the hike by accelerating the return of investment tax credits tied to its Powerline Battery Energy Storage System. Instead of spreading those credits over the asset's standard 15-year lifespan, the company is returning them in a single year, delivering $50 million in savings to customers.

Company Executive Cites Customer Cost Pressures

"Right now, we know they're carefully watching every dollar," Melissa Seixas, Duke Energy Florida's state president, said in the Sept. 3 press release. "We'll remain focused on making smart, disciplined investments that allow us to keep our costs in check ... "

Rate Cuts Follow a Pattern in 2026 and 2025

The company also lowered residential rates three times in 2026, according to a July 10 company press release. In 2025, Duke Energy Florida passed roughly $65 million in solar energy production tax credits to customers, reducing residential rates by at least $2.50 per 1,000 kilowatt-hours.

Business Customers Would See Smaller Bills Too

Commercial and industrial customers would see bill reductions between 0.8% and 3.6% under the new filing, though the exact savings depend on usage and rate class.

About Duke Energy Florida's Service Area

Duke Energy Florida serves 2 million customers across a 13,000-square-mile area in Florida, including Clearwater. Some costs, like fuel, are falling, while others tied to grid improvements are rising slightly in 2027, the company said.

What Happens Next

The rate decrease still needs FPSC approval. No hearing date has been announced.