A new analysis by a utility watchdog group found that Florida Power & Light may have recorded the highest profit margin among utilities nationwide in 2025.
According to the report from the Energy and Policy Institute, FPL outpaced other utilities in the share of customer payments retained as profit. The group argues that rising utility profits across the country are contributing to higher electricity bills and is calling for tighter regulation.
“Electricity bills are rising,” said Daniel Tait, the institute’s research and communications director. “Utilities and politicians often point to factors like fuel costs or infrastructure investments. Those are real—but another critical factor that deserves closer scrutiny is how much of each bill goes toward investor profit.”
The analysis estimates that FPL kept more than 25 cents of every dollar collected from customers in 2025 as profit. The ranking is considered preliminary because not all utilities had submitted their financial data at the time. In a separate review of 110 utilities, FPL ranked second for average profit margin over the previous four years, behind MidAmerican Energy in Iowa.
These figures were calculated before FPL’s latest rate increase took effect in early 2026. In response, FPL spokesperson Andrew Sutton criticized the report for not factoring in total customer bills.
“FPL’s typical bills have remained well below the national average for over a decade and are currently about 30% lower and contradicts the institute’s conclusions,” said Sutton.
Sutton also pointed to the Edison Electric Institute, a national trade group for investor-owned utilities. Its spokesperson, Dani Marx, disputed the methodology, saying the report overlooks standard industry practices that account for costs passed directly to customers.
“There are established ways to evaluate regulated utility profits,” Marx said. “This analysis uses an overly simplistic approach that can mislead readers into thinking a large share of customer bills goes to profit.”
A commonly used industry measure of profitability is return on equity. In FPL’s most recent rate case, regulators approved a return on equity range with a midpoint of 10.95%—the highest among the lower 48 states—according to Florida Public Counsel Walt Trierweiler, who represents consumers. That rate increase is now being challenged by Trierweiler and others, with the dispute likely headed to the Florida Supreme Court.
Meanwhile, a bill introduced in the Florida Legislature aimed to limit utility profits by placing stricter boundaries on return on equity. However, the measure failed after lobbying efforts by FPL, according to its sponsor, Republican Senator Don Gaetz.
“The company’s profitability stands out regardless of how it’s measured,” said Bradley Marshall, an attorney representing consumer groups opposing FPL’s latest rate hike. “The Florida Public Service Commission approved higher rates for what is already the most profitable utility in the country. We believe that decision is wrong.”
Source: yahoo!finance