Storm Cost Recovery Adjustment

Recovery Progress Means a Lower Charge for Members

Central Florida Electric Cooperative (CFEC) is committed to providing safe, reliable and affordable electricity while responsibly managing the extraordinary costs associated with major storm recovery.

In 2023 and 2024, Hurricanes Idalia, Debby, Helene and Milton caused widespread damage across CFEC’s system. Restoring power required thousands of workers, hundreds of replacement poles and transformers, and significant investments in materials, equipment and outside assistance.

To date, CFEC has spent approximately $47.8 million responding to these four storms.

CFEC pays storm restoration costs upfront and then seeks reimbursement for eligible expenses through FEMA and the Florida Division of Emergency Management (FDEM). Because reimbursement can take months or even years, CFEC must finance a portion of these costs while awaiting payment—adding interest expense to an already significant financial burden.

The Storm Cost Recovery Adjustment helps CFEC manage these costs without incorporating extraordinary storm expenses into permanent electric rates.

Storm Cost Recovery Adjustment Reduced

As CFEC continues to receive storm reimbursements and make progress toward recovering outstanding costs, the Board of Trustees has approved a reduction in the Storm Cost Recovery Adjustment from $0.00936 to $0.00636 per kilowatt-hour.

New Storm Cost Recovery Adjustment

$0.00636 per kWh

What That Means for Your Bill

• 1,000 kWh: $6.36 — down from $9.36
• 500 kWh: $3.18 — down from $4.68
• Savings at 1,000 kWh: $3.00 per month

This reduction reflects CFEC’s commitment to lowering the adjustment as storm recovery progresses.

Where Storm Recovery Stands

CFEC has spent approximately $47.8 million responding to Hurricanes Idalia, Debby, Helene and Milton.

Of that total, approximately $43.9 million is expected to be eligible for reimbursement. So far, CFEC has received approximately $21.3 million — 48.5% of the amount expected to be reimbursed.

That leaves more than $22 million in expected reimbursements still outstanding, with some storm-related costs awaiting reimbursement for years.

While those funds remain outstanding, CFEC continues to carry the financial burden of storm recovery, including interest associated with financing those costs.

Why the Adjustment Is Still Needed

Although reducing the Storm Cost Recovery Adjustment is an important step forward, storm recovery is not yet complete.

CFEC is a not-for-profit, member-owned electric cooperative. When a major storm strikes, we cannot wait for federal or state reimbursement before restoring the electric system. Crews are mobilized, damaged poles, transformers and wire are replaced, outside crews and equipment are brought in, and power is restored as quickly and safely as possible.

CFEC pays those costs upfront.

The combination of FEMA reimbursement timelines and Florida’s payment processing can create significant delays between when CFEC pays restoration expenses and when reimbursement is received. The Storm Cost Recovery Adjustment helps bridge that gap while protecting the cooperative’s financial strength and its ability to provide reliable service.

Working Toward Full Recovery

CFEC continues to work closely with FEMA and FDEM to recover eligible storm expenses and advocate for improvements to the disaster reimbursement process.

Beginning with Hurricane Helene, an assumption agreement with FDEM has helped provide funding for eligible costs more quickly, reducing the amount CFEC must finance while awaiting federal reimbursement.

At the same time, CFEC continues to advocate for a faster and more predictable reimbursement process for electric cooperatives—particularly small, rural systems that can face significant financial strain when millions of dollars in storm expenses remain outstanding.

As additional storm costs are recovered, CFEC will continue evaluating the Storm Cost Recovery Adjustment with the goal of reducing and ultimately removing it when recovery is complete.

Have Questions?

We understand that every dollar matters. If you have questions about the Storm Cost Recovery Adjustment or your electric bill, please contact CFEC at (352) 493-2511.

Thank you for your patience and support as we continue working to recover from these historic storms while keeping your cooperative financially strong.