Florida Power & Light Faces Rate Hike Decision Amid Controversy
The Florida Public Service Commission (PSC) commenced a high-stakes hearing on Monday that could result in Florida Power & Light (FPL) customers facing additional charges amounting to billions of dollars in the coming years. This two-week hearing will examine extensive technical and financial data as FPL seeks to increase its base electric rates.
“This is a large case. It is complex. It is obviously controversial,” stated James Brew, an attorney representing the Florida Retail Federation, one of the various stakeholders intervening in the proceedings. The hearing is set against the backdrop of a proposed settlement FPL filed on August 20, which aims to adjust rates through 2029.
FPL President and Chief Executive Officer Armando Pimentel served as the opening witness, emphasizing the utility’s reliability in the face of rapid customer growth. Since the last rate settlement in 2021, FPL has added 275,000 new customers and asserts that it has made prudent investments to enhance service quality. Pimentel remarked, “We believe each one of our new customers deserves the same outstanding reliability and low costs that our existing customers have long experienced.”
Contrasting this perspective, Ali Wessling, an attorney with the Florida Office of Public Counsel, which represents consumer interests, challenged FPL’s claims. Wessling argued that many of FPL’s requests could harm customers, leading to “unfair, unjust, unreasonable and thus unaffordable rates.”
The PSC’s scrutiny of FPL’s rate increases commenced with the utility’s initial proposal submitted in February 2023. This proposal sought to raise rates by $1.545 billion in 2026 and $927 million in 2027, in addition to costs associated with solar and battery projects in 2028 and 2029. The Office of Public Counsel estimates that these changes could cumulatively increase customer bills by $9.8 billion over the next four years.
Following the initial proposal, FPL’s settlement negotiations led to a revised plan that would result in smaller increases of $945 million in 2026 and $766 million in 2027. If approved, residential customers using 1,000 kilowatt hours monthly would see their bills rise from the current $134.14 to $137.93 in January 2026, with gradual increases leading to $148.15 by December 2029.
The PSC’s Chairman, Mike La Rosa, acted as a prehearing officer and ultimately rejected a counter proposal filed by the Office of Public Counsel and several consumer advocacy groups, which aimed for smaller rate increases. La Rosa stated that FPL is an “indispensable party to any settlement,” supporting his decision to dismiss the competing plan.
The counter proposal, which suggested rate increases of $867 million in 2026 and $403 million in 2027, could have led to a cumulative increase of $5.241 billion over four years. This plan was supported by various organizations, including Florida Rising and the League of United Latin American Citizens of Florida.
Among the significant issues in the case is FPL’s proposed return on equity, which is set at 10.95% in the current settlement. The previously considered counter proposal suggested a lower target of 10.6%.
As the hearing progresses, both sides will present their arguments, with the outcome poised to have lasting implications for utility customers across Florida. The PSC will continue to evaluate the proposals and their potential financial ramifications in a state where energy costs are a critical concern for many residents.
