FPL Customers Face $6.9 Billion Rate Increase in 4 Years as Regulators Approve Controversial ‘Settlement’

The Florida Public Service Commission (PSC) approved a four-year settlement with Florida Power & Light (FPL) Thursday for about $6. 9 billion, which opponents claim is the largest rate hike in U. S. history. The investor-owned utility, Florida’s largest with approximately six million accounts totaling around 12 million customers, said in a press release that it will enable FPL to continue to make “smart, necessary investments in the grid to power Florida’s growth while keeping customer bills well below the national average.” [FPL is the exclusive provider of electricity in Flalger County and its cities.] The proposed rate hike was met with fierce opposition. More than two dozen local and state elected officials sent a letter to last month to Gov. Ron DeSantis and the PSC, calling on them to reject the proposal. The rate hike also became an issue in the race for attorney general. Former Democratic state Sen. José Javier Rodriguez, running for the position next year, called on Florida Attorney General James Uthmeier to intervene in the case. Attorneys general in places like Michigan, Connecticut, and Arizona have challenged proposed rate hikes by public electricity utilities this year, and Republican former Florida attorneys general such as Bill McCollum and Charlie Crist previously intervened in rate hikes proposed by investor-owned utilities. However, Uthmeier declined to get involved. ‘Shameful decision’ Bradley Marshall, who represented several groups who opposed the rate hike, insisted the fight isn’t over yet. “We look forward to reviewing the written decision and expect this case will be appealed to the Florida Supreme Court, where we look forward to presenting our case,” he told the Phoenix. “This decision hurts the people who are already struggling with higher power bills.” Other critics blasted the PSC. “Four years ago, FPL was awarded one of the largest rate hikes in U. S. history. Today, they’ve made history again at nearly double that amount. This shameful decision illustrates why our state energy regulators cannot be trusted to ensure that families have reliable, affordable energy,” said Food & Water Watch Senior Florida organizer Brooke Ward in a written statement. “People are not asking for diamonds or gold while greedy utilities keep raking in record profits, regular Floridians want to be able to afford running their air conditioners and heaters. The Legislature must pass affordable energy legislation this session to ensure fair electricity prices.” “By approving this rate hike, the PSC has handed FPL another blank check while Floridians struggle to keep the lights on,” said Alyssa White, climate justice organizer for Florida Student Power. “This is a slap in the face to every family, student, and small business already drowning in high bills. Our communities deserve an energy system that puts people over profit, and we will continue to build the power to make that happen!” FPL initially wanted bigger rate hike Originally, FPL proposed a four-year, $9. 8 billion rate hike but, shortly before the PSC was scheduled to hold hearings on that proposal in August, FPL announced that it had reached an 11th-hour “agreement in principle” with what it described as a “diverse” group of organizations including Walmart, RaceTrac, Wawa, and the Florida Retail Federation. That proposal reduced the rate increase to about $6. 9 billion but still maintained a return on equity of 10. 95%. ROE is a measure of a company’s financial performance. FPL’s revised proposal drew pushback from the Office of Public Counsel (OPC), designated by law to represent Florida consumers. The OPC worked with organizations such as Florida Rising and the League of United Latin American Citizens of Florida (LULAC) and came up with their own counterproposal, which did not include any input from FPL. Their proposal would cut the base bill by nearly half for the average residential customer compared to FPL’s original proposal, to $5. 2 billion. Their proposed ROE for FPL would be 10. 6%. PSC Chairman Mike La Rosa rejected the OPC proposal on Sept. 12, saying FPL was “an indispensable party to any settlement.” He added that while their proposal could not be presented as a settlement agreement, it could be included as part of their testimony in opposition to FPL’s agreement submitted in late August. FPL says that in 2026, its “typical” 1, 000-kWh residential customer bill in most of Florida will increase by $2. 50 a month, or about 2%, from the existing $134. 14 to $136. 64. In Northwest Florida, the typical residential customer bill will remain relatively flat, going from the existing $143. 60 to $141. 36 in 2026. [There would be additional increases in 2027, 2028 and 2029.] “We appreciate the Florida Public Service Commission’s thorough review of our rate plan,” said FPL president and CEO Armando Pimentel in a statement. “Today’s vote enables FPL to continue to deliver some of America’s most reliable electric service and meet the needs of our fast-growing state and we project will keep customer bills well below the national average through the end of the decade. As we begin our second century of serving Florida, approval of this plan is a win for our customers and a win for the entire state.” -Mitch Perry, Florida Phoenix.
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