The state Public Service Commission approved a plan that will lead to Duke Energy Florida paying $34.5 million to stop purchasing electricity from a Polk County power plant — with the expectation that the move will ultimately save money for customers.
Duke has had an agreement to buy power from Ridge Generating Station, L.P. through 2023, but Duke said in a filing that the agreement is “no longer cost-effective” for its customers. That is because so-called “avoided costs” — essentially other ways of meeting customers’ needs — have decreased. The Public Service Commission said Tuesday that ending the agreement is expected to eventually save $30 million to $35 million for customers.
“The good news is that this termination agreement saves Duke customers millions of dollars,” commission Chairman Art Graham said in a prepared statement. The Ridge plant, which is in Auburndale, converts scrap tires and other types of waste into electric power.
Reposted with permission from The News Service of Florida