Residential power rates would rise around 2.5 percent through 2029 under a new rate plan Florida Power & Light said today that it plans to file.
FPL will seek increases of about $1.55 billion that would take effect in 2026 and $930 million that would take effect in 2027, according to a letter filed with the Florida Public Service Commission.
It also will seek additional money in 2028 and 2029 to pay for solar-energy and battery projects, though the filing did not detail specific amounts.
In the letter, FPL said, for example, that it has “experienced significant growth in our customer base” during the past four years and expects such growth to continue.
“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 by building transmission and distribution infrastructure, including poles, wires, transformers, substations and other components,” the letter, addressed to Public Service Commission Chairman Mike La Rosa, said. “The costs of meeting these obligations have substantially increased due to the impact of inflation.”
Customers will be able to calculate potential adjustments to their bill after FPL files its formal plan.
The utility said that despite the raise, "FPL bills would remain well below the national average and below many other Florida electric utilities." Customers will be able to calculate potential adjustments to their bill after FPL files its formal plan.
The customary process for setting new base rates takes about a year. FPL will submit a detailed four-year rate plan as early as February to the PSC, beginning an extensive public review process that includes numerous opportunities for input from customers prior to a decision by state regulators.
FPL's current four-year rate plan concludes at the end of 2025. It was agreed to by the state's consumer advocate and numerous environmental, business and customer groups and was unanimously approved by the PSC in 2021.
Base rates make up a major part of customers’ monthly bills, and the regulatory commission will consider voluminous amounts of information and hold hearings while considering the FPL proposal. The state Office of Public Counsel, which represents consumers, and groups that represent businesses and consumers also are expected to take part in the case.
The commission on Dec. 19 gave final approval to a plan that will lead to a $184.9 million base-rate increase in 2025 for Tampa Electric Co., followed by increases of $86.6 million in 2026 and $9.1 million in 2027. In August, the commission approved a settlement that will increase Duke Energy Florida’s base rates by $203 million in 2025 and $59 million in 2026.
FPL is by far the largest utility in the state, with Monday’s letter saying it has about 6 million customer accounts. When factoring in other expenses such as power-plant fuel, FPL said the proposal would lead to customer bills increasing at an average annual rate of about 2.5 percent from January 2025 through 2029.
In a prepared statement Monday, FPL President and CEO Armando Pimentel said the utility has a “proven track record of delivering value for our customers.”
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