A proposal aimed at changing how the Florida Public Service Commission (PSC) approves energy rates just advanced in its first Senate committee hearing, ahead of the 2026 legislative session.
The SB 126 bill would require the PSC to justify rate increases for investor-owned utilities and to consider affordability when making rate decisions. It was filed just weeks after the PSC approved a nearly $7 billion rate increase for Florida Power & Light (FPL), affecting about 12 million customers and marking the largest rate hike in state history.
During a hearing before the Senate Regulated Industries Committee, sponsor Sen. Don Gaetz, R-Crestview, introduced a strike-all amendment that would revise several aspects of Florida law governing the PSC. The amendment would:
- Expand the PSC from five to seven commissioners, requiring one to be a certified public accountant and another to be a chartered financial analyst.
- Require the commission to provide adequate support for its conclusions in written orders.
- Mandate reasoned explanations when the PSC approves or rejects settlement agreements.
- Require an annual report analyzing public utility rates, including benchmarking, costs, return on equity, economic conditions, and executive compensation.
The amendment removed a provision from Gaetz’s original bill that would have capped a utility’s return on equity (ROE), or allowed profit. FPL’s recently approved rate increase includes an ROE of 10.95 percent.
The removal drew criticism from members of the public who addressed the committee.
“The bill as amended has eliminated a critical tool — a cap on shareholder profits — that would prevent utilities from shifting executive costs onto ratepayers,” said Brian Lee of Reclaiming Florida’s Future.
Taylor Brown added that the strike-all amendment “weakens its ability to deliver real relief for Florida families,” noting that rising housing, insurance, and utility costs are pushing residents to the brink.
Affordability Provisions
Current Florida law requires utility rates to be “fair, just, and reasonable.” Gaetz’s bill would explicitly direct the PSC to consider affordability in proceedings that could affect rates. Gaetz told the committee that during the recent FPL case, commissioners declined to consider affordability because it was not explicitly included in statute.
“We’re going to help them with that,” Gaetz said.
Committee Chair Sen. Jennifer Bradley, R-Fleming Island, asked PSC Deputy Executive Director Mark Futrell whether the agency could define affordability. Futrell said clearer legislative guidance would be helpful but added that the PSC understands the concept.
“Affordability is something that — we get the sentiment of it,” Futrell said.
Some lawmakers raised concerns. Sen. Debbie Mayfield, R-Melbourne, questioned whether expanding the commission would improve its performance.
“If we have a problem with the PSC, increasing the number of commissioners won’t fix it,” Mayfield said, noting that lawmakers are responsible for confirming appointments.
Sen. Jason Pizzo, NPA-Sunny Isles Beach, said he supported removing the ROE cap, calling such limits “socialism.”
Gaetz emphasized that the bill is not intended to restrict utilities but to require transparency and accountability from regulators.
“The intent is to direct the commission to justify its decisions,” Gaetz said, “and explain how those decisions affect ratepayers.”
The committee unanimously approved the bill, 9–0. SB 126 now heads to the Senate Committee on Agriculture, Environment, and General Government.
Source: WMNF