If you’ve opened your utility bill lately and felt a bit of a sting, you aren't alone. It’s a Florida tradition, right up there with humidity and tourists who don’t use turn signals. But honestly, gas rates in Florida are a weird beast. Most of us just look at the total at the bottom, sigh, and pay it. But if you actually dig into why that number is what it is, things get interesting—and honestly, a little frustrating.
Living in the Sunshine State means we rely on natural gas way more than people realize. It’s not just for that one neighbor with the fancy outdoor kitchen. It’s what keeps the lights on for almost everyone because natural gas fuels over 75% of Florida's electric grid. When the price of gas moves an inch, the ripple effect hits every single household from Pensacola down to the Keys.
The Breakdown: What You’re Actually Paying For
Basically, your bill is split into a few different buckets. You have the customer charge, which is a flat fee just for the privilege of having a meter. For companies like Peoples Gas or Florida City Gas, this usually hangs out around $15 to $20 a month. Then you have the energy charge (the cost of the pipes and the people fixing them) and the Purchased Gas Adjustment (PGA).
The PGA is where the drama happens.
This is a "pass-through" cost. The utility company buys the gas on the open market and sells it to you at the same price. They aren't supposed to make a profit on the gas itself—just the delivery. For 2026, the Florida Public Service Commission (FPSC) has been keeping a tight leash on these. For instance, Peoples Gas recently saw a cap adjustment for their PGA, moving the range up to about $1.16 per therm to handle market swings.
Why are Florida rates so volatile?
It’s all about the "straw." Florida doesn't have its own natural gas deposits. Everything we use has to be piped in from places like Texas or the Gulf of Mexico. We are at the very end of a very long straw. If there’s a hurricane in the Gulf or a spike in global demand because of a cold snap up North, we feel it.
Kinda sucks, right?
But there’s a silver lining. As of early 2026, the Henry Hub spot price—which is basically the North American benchmark for gas prices—is projected to hover around $3.50 per MMBtu. That’s actually a bit of a relief compared to the wild spikes we saw a couple of years ago. Experts like those at the U.S. Energy Information Administration (EIA) are seeing supply finally catch up with demand, which usually keeps the "per therm" rate on your bill from going into orbit.
The 2026 Outlook: Winners and Losers
If you’re a Duke Energy Florida customer, you might actually see some good news. Because of massive investments in solar and more efficient gas plants throughout 2025, many residential customers are looking at a bill decrease of nearly 20% compared to last year. It’s rare to see a utility bill go down, but the "fuel cost recovery" part of the bill is finally shrinking as the company relies less on expensive, imported gas.
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On the flip side, if you're in the Florida Power & Light (FPL) territory, things are a bit more "flat." A recent settlement agreement approved by the FPSC in late 2025 means typical residential bills are only ticking up by a couple of bucks—about $2.50 for the average 1,000-kWh user. It’s not a huge jump, but it’s a reminder that infrastructure isn’t free.
Natural Gas vs. Electric: The Math
A lot of folks wonder if switching to all-electric is the move. Honestly, it depends on what you're doing.
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- Water Heating: A tankless natural gas heater is still roughly 40-45% cheaper to run than an electric one.
- Cooking: Gas is better for the steak, but electric is getting closer in price-per-meal.
- Space Heating: In Florida? We barely use it. But when that one "cold" week hits in January, gas heaters usually win on efficiency.
Current data from CGS Energy suggests that a typical Florida home using gas for cooking, water heating, and drying clothes might save over $300 a year compared to a pure electric setup. That "net savings" accounts for the monthly customer charges too.
How to keep your bill from exploding
You can't control the global market, and you definitely can't control the FPSC. But you've got some moves.
- Check the CI/BSR Rider: Look at your bill for this acronym. It stands for "Cast Iron/Bare Steel Replacement." Companies like Peoples Gas are charging a tiny surcharge (about $0.015 per therm) to replace old pipes. It’s a safety thing, but it’s good to know where that extra 30 cents is going.
- Lock in a Fixed Rate: If you use a third-party provider like Florida Natural Gas (FNG) or Gas South, you can sometimes lock in a rate. This is a gamble. If prices drop, you’re stuck paying more. If a hurricane hits the refineries, you’re a genius.
- The 65-Degree Rule: If you are using gas for heat, the National Weather Service and local utilities suggest keeping the thermostat at 65°F during winter nights. Every degree higher can add 3-5% to your heating bill.
Actionable Steps for Florida Residents
- Audit Your Therms: Check your bill from January 2025 vs January 2026. If your usage (therms) is the same but the price is way higher, call your provider and ask about "Rate Stabilization" options.
- Apply for Rebates: Companies like Florida Public Utilities (FPU) offer massive rebates—sometimes up to $1,500—if you switch from an old electric water heater to a high-efficiency gas one.
- Monitor the PSC: The Florida Public Service Commission holds public hearings. If you think the rates are unfair, that's the only place your voice actually results in a vote. They post their schedule and "consumer toolkits" on their website monthly.
The reality of gas rates in Florida is that we are tied to the global market whether we like it or not. But with new solar projects coming online and gas storage levels sitting at a healthy 6% above the five-year average, 2026 is looking a lot more stable than the roller coaster of the early 2020s. Stay vigilant on the surcharges, and maybe don't keep the pool heater running 24/7 in February.