State regulators just approved a four-year rate settlement that will require Florida Power & Light (FPL) customers to pay billions more in the coming years.
Opponents, however, say they expect to appeal the decision to the Florida Supreme Court.
The Florida Public Service Commission (PSC) signed off on the agreement, which FPL negotiated with several business groups and large energy users. The deal includes base-rate hikes of $945 million in 2026 and $705 million in 2027, with additional charges in 2028 and 2029 tied to solar and battery-storage projects.
Although commissioners acknowledged concerns about parts of the settlement—Commissioner Andrew Fay described having “heartburn” over some elements—they approved it overall. Commissioner Gary Clark strongly endorsed the agreement, calling it a “balanced resolution” and saying it delivers “fair, just and reasonable rates” for all customer classes.
FPL President and CEO Armando Pimentel called the decision a victory for customers and the state, saying it will help the utility maintain reliable service while keeping bills below the national average through the decade. But the state Office of Public Counsel—tasked with representing utility customers—and several consumer groups opposed the settlement. Attorneys Bradley Marshall and Robert Scheffel Wright said they expect to challenge it before the state Supreme Court.
Under the settlement, residential customers using 1,000 kilowatt hours a month in FPL’s traditional service area would see their bills rise from $134.14 to $136.64 in 2026, with further increases projected through 2029. Northwest Florida customers would see a slight decrease in 2026, from $143.60 to $141.36, followed by increases in later years. Opponents estimate the settlement could lead to about $6.9 billion in cumulative increases over four years.
FPL negotiated the agreement with groups including the Florida Industrial Power Users Group, the Florida Retail Federation, Americans for Affordable Clean Energy, and several large retailers and charging-station companies. The PSC, however, ruled that the Southern Alliance for Clean Energy lacked legal standing.
FPL originally filed a larger rate request in February, seeking increases of $1.545 billion in 2026 and $927 million in 2027. Regulators held a two-week hearing in October to consider both the initial proposal and the settlement. The Office of Public Counsel has said the initial plan would have raised customer costs by $9.8 billion over four years.
A major point of contention remains FPL’s allowed return on equity (ROE). The settlement sets a target ROE of 10.95%, which opponents argue is unreasonably high. Commissioner Gabriela Passidomo Smith called the ROE the “big kahuna,” saying she is not a fan of the number but believes, when viewed in context of the entire settlement, that it meets legal standards.
Source: SunSentinel