Florida Power & Light (FPL), the state’s largest electric utility, announced on Monday that it will seek to increase base electric rates over the next four years. The proposal, filed with the Florida Public Service Commission (PSC), cites significant customer growth, increased infrastructure costs due to inflation, and the need for continued investment in the state’s energy grid as reasons for the rate hikes.
FPL is requesting an increase of approximately $1.55 billion in 2026 and $930 million in 2027. The utility also plans to seek additional funds in 2028 and 2029 to support solar energy and battery storage projects, although specific amounts were not detailed in the initial filing.
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“While this growth will ultimately have a positive impact by spreading existing fixed costs over a larger customer base, it also means that FPL must invest significant capital to meet the needs of these additional customers,” FPL stated in its letter to the PSC.
The proposal is the first step in a lengthy regulatory process. FPL will submit a detailed plan on February 28th, 2025, and the PSC will conduct a thorough review, including public hearings and input from consumer advocates and business groups. The new rates, if approved, would take effect at the beginning of 2026, replacing the current base-rate plan that expires at the end of 2025.
FPL estimates that the proposed increases, combined with other expenses such as fuel costs, would result in an average annual increase of about 2.5% for customer bills from 2025 through 2029.
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“While we know there is never a good time to request a rate increase, we need to continue to make smart investments in the grid and in new generation resources so we can continue to deliver reliable electricity, enhance resiliency and diversify our generation mix to power our fast-growing state,” said FPL President and CEO Armando Pimentel.
One key aspect of the proposal is FPL’s requested return on equity, a measure of profitability. FPL is seeking a midpoint of 11.9%, which is higher than the 10.5% midpoint recently approved for Tampa Electric Co.
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The proposal also emphasizes FPL’s commitment to expanding solar energy and battery storage, highlighting their role in providing clean and reliable energy while mitigating fuel price volatility.
The PSC’s decision on FPL’s rate case will significantly impact millions of Floridians and the state’s energy landscape. The review process will be closely watched by consumers, businesses, and industry experts alike.
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