Yannel Ortiz works in our Customer Care Center, making sure that when you call about a billing question we provide you with accurate information and excellent service.
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By Yannel Ortiz
Asked on: January 24, 2012 by Peter W., Port Orange
I don’t know what any of these taxes and fees are on my bill. If you could explain them to me, I would appreciate it…
I’m glad you brought this up. I know a lot of FPL customers wonder about these charges, and we want them to be as transparent as possible.
Your electric bill may include three different taxes, paid to the state or local governments: a gross receipts tax, utility tax and franchise fee. These taxes vary by area, with amounts not established by FPL. FPL is required to collect these fees and taxes for distribution to the appropriate entities and does not profit from them.
Gross receipts tax: A tax on a customer’s electric bill that is paid to the State of Florida.
Franchise fee: Fee to a municipality or county government for the right to install equipment such as poles and transformers on their property.
Utility/municipal tax: Tax levied by a municipality on a customer’s electricity usage.
Your electric bill also includes the following components, all of which are regulated by Florida’s Public Service Commission (PSC):
Fuel charge: The cost of fuel required to provide each kilowatt-hour of electricity. FPL makes no profit on fuel costs, which are reviewed and approved by the PSC and adjusted at least once a year.
Non-fuel charge: The expense, other than fuel, for making electricity and distributing it; for programs designed to reduce electric demand and consumption; for meeting environmental laws and regulations; and purchasing electricity from other generating sources.
Customer charge: A fixed monthly amount to cover the cost of providing service to your location. This charge includes the cost of the meter, billing and providing customer service. It is applicable whether or not electricity is used.
Storm charge: Used to repay the bonds and taxes issued during the 2004 and 2005 hurricane restoration efforts and partially replenish a fund for future storms.
To view an interactive explanation of the components of your electric bill, visit www.FPL.com/bill.
You may have heard about our intent to file a change to our base electricity rate. To learn more, visit www.FPL.com/answers.
FPL reserves the right to edit any user submissions to "Ask the Energy Expert" for brevity or clarity. Publication of readers' questions or comments is at the sole discretion of FPL.