A proposed settlement reached between Florida Power & Light and a number of organizations and companies would raise base energy rates over the next four years, but not by the amount the company had first requested.
According to the utility, the proposed settlement, which was submitted to the Florida Public Service Commission on Wednesday, would result in increases of $945 million in 2026 and $766 million in 2027. Additionally, FPL would raise more money for solar energy and battery storage projects in 2028 and 2029.
FPL, which supplies all of Flagler County with electricity, submitted a proposal in February calling for increases of $1.545 billion in 2026 and $927 million in 2027, as well as the transfer of expenses for solar and battery projects in 2028 and 2029. However, FPL and other parties declared they had achieved a settlement in principle on August 8, three days before the Public Service Commission was supposed to begin a likely-contentious hearing on that proposal.
As a result, the regulatory commission put the rate case on hold while the proposed settlement’s specifics were worked out.
However, other parties, such as the state Office of Public Counsel, which is legally mandated to represent utility customers, have not accepted the proposed settlement. To decide whether to approve the idea, the Public Service Commission is scheduled to hold a hearing this fall.
FPL President and CEO Armando Pimentel said in a prepared statement on Wednesday that the settlement deal is a success for Florida and all FPL consumers. While maintaining customer bills significantly lower than the national average, it demonstrates our continued dedication to meeting the resilience and dependability demands of our rapidly expanding state.
However, lawyers representing three parties who declined to sign the proposed settlement The possible agreement was swiftly denounced by Florida Rising, the League of United Latin American Citizens of Florida, and the Environmental Confederation of Southwest Florida. In a submission to the commission, the groups contended that the settlement favored large FPL customers over residential power consumers.
In the filing, the group’s attorneys from the Earthjustice legal organization stated that allowing residential customers and small businesses to pay only their fair share of the costs would force Florida’s biggest and most successful companies to pay their fair share of the costs, something they most definitely do not want to do.
The proposed settlement was reached by FPL with federal government agencies, Walmart Inc., EVgo Services, LLC; Circle K Stores, Inc.; RaceTrac Inc.; Wawa, Inc.; Electrify America, LLC; Armstrong World Industries, Inc.; the Florida Industrial Power Users Group; the Florida Retail Federation; the Florida Energy for Innovation Association; Americans for Affordable Clean Energy; and the Southern Alliance for Clean Energy.
Along with expenses like power plant fuel, base rates account for a significant portion of consumers’ monthly payments. At the Public Service Commission, base-rate cases can place over several months and entail a significant amount of financial and other data.
Utilities use monthly invoices for residential customers using 1,000 kWh of electricity as a standard. Customers in FPL’s typical service region and those in Northwest Florida who were previously served by Gulf Power Co. have seen varying bill levels in recent years.
FPL stated on Wednesday that residential customers in the traditional territory who use 1,000 kWh per month would see their bills increase from the current $134.14 to $137.93 in January 2026, $143.05 in January 2027, $146.24 in January 2028, and $148.15 in December 2029 if the proposed settlement is approved.
The current $143.60 bills for these consumers in Northwest Florida would increase to $142.66 in January 2026, $143.05 in January 2027, $146.24 in January 2028, and $148.15 in December 2029.
According to the Office of Public Counsel, FPL’s rate proposal from February would have resulted in customers paying $9.819 billion more than their current rates over the course of the following four years. The proposed settlement would result in base-rate revenues that would be around $2.9 billion less than first asked, FPL said in a news release on Wednesday.
The Public Service Commission will have to weigh a number of concerns as it reviews the proposed settlement, one of which is how the specifics will impact FPL’s diverse clientele.
For instance, utilities’ permitted return on equity, a metric of profitability, is a topic of great interest in base-rate applications. A return on equity target of 10.95 percent is part of the proposed settlement. In the initial proposal, 11.9 percent was required.
Jim Saunders, Florida News Service
