FPL wins approval for $7 billion rate increase, largest in U.S. history
Islander News
By Hillard Grossman
This article originally appeared in Islander News.
FPL contractors prepare for PTC1 at the Gulfstream Service Center in Hollywood, Fla. on June 2, 2022.
David Adame
Despite all the contentious arguments from advocates against another rate hike, Florida Power & Light customers will be paying more for their electric after the Florida Public Service Commission approved a $7 billion hike, the largest in U.S. history, last week.
The commission determined that average customers will face monthly bill increases of approximately $2.50 next year, with similar increases expected for the rest of the decade. By 2029, bills will have risen by $8 a month.
Critics argue the rate hike will worsen Florida's affordability crisis, noting that homeowners already have seen their bills rise 45% since 2021.
FPL President and CEO Armando Pimentel described the approval as a “win for our customers and a win for the entire state.”
He added that, “Today's vote enables FPL to continue to deliver some of America's most reliable electric service and meet the needs of our fast-growing state — and we project will keep customer bills well below the national average through the end of the decade.”
The rate hike was approved despite sustained public outcry.
Last month, 29 Florida elected officials sent a letter to Governor DeSantis and his Public Service Commission urging them to reject FPL’s rate hike proposal. That echoed pushback from Miami-area advocates and experts along with Congressional Representative Kathy Castor (D-FL); the Manatee County Commission; the City of Pembroke Pines; and the Office of Public Counsel (OPC) opposing the rate hikes.
“Four years ago, FPL was awarded one of the largest rate hikes in U.S. history. Today, they’ve made history again at nearly double that amount," said Food & Water Watch Senior Florida Organizer Brooke Ward, who called it a "shameful" decision.
“People are not asking for diamonds or gold — while greedy utilities keep raking in record profits, regular Floridians want to be able to afford running their air conditioners and heaters. The legislature must pass affordable energy legislation this session to ensure fair electricity prices.”
“FPL is one of the most profitable companies in the state, and yet the PSC chose to give them a handout while Floridians scrape by, juggling the cost of everyday necessities like groceries, medication, and child care,” said Catalyst Miami Climate Justice Program Manager, Maria Claudia Schubert-Fontes.
“Last year alone, FPL disconnected roughly 3 million Floridians across the state for nonpayment. These newly approved rate increases will undoubtedly leave even more of our neighbors in the dark."
According to a news release from Catalyst Miami, founded in 1996 by now Miami-Dade County Mayor Daniella Levine Cava, its analysis shows rates climbing as much as $14 a month, or an additional $175 annually in energy, fuel and taxes starting in January 2026, and by January 2028 those bills would be some $289 more annually.
A Food & Water Watch analysis finds that from December 2020 to January 2026, the average FPL customer using 1000 kWh/month will see bills go up by 45%, or actually $513 more annually.
The fight might not be over.
According to Bradley Marshall, attorney with Earthjustice representing Florida Rising, the League of United Latin American Citizens of Florida, and the Environmental Confederation of Southwest Florida in the rate case, he said: “We look forward to reviewing the written decision and expect that this case will be appealed to the Florida Supreme Court, where we look forward to presenting our case.”
Thursday's settlement is expected to lead to base-rate increases of $945 million in 2026 and $705 million in 2027. FPL also would collect additional amounts in 2028 and 2029 for solar-energy and battery-storage projects.
The OPC also reported that FPL shareholder profits will be the highest in the lower 48 states with a return on equity at 10.95%. To guarantee these shareholder profits, half of every dollar FPL requested will go toward those profits and associated taxes.
In 2025, FPL customers paid an additional $12 more monthly in storm recovery charges from the 2024 storms. The approval for those charges expires in January 2026.
Thursday's approval marked the second base rate hike the PSC has approved this month alone. The PSC approved Tampa Electric’s (TECO) 2026 base rate adjustment on Nov 4, which spiked people’s bills by an additional 6%.
By Hillard Grossman
This article originally appeared in Islander News.
FPL contractors prepare for PTC1 at the Gulfstream Service Center in Hollywood, Fla. on June 2, 2022.
David Adame
Despite all the contentious arguments from advocates against another rate hike, Florida Power & Light customers will be paying more for their electric after the Florida Public Service Commission approved a $7 billion hike, the largest in U.S. history, last week.
The commission determined that average customers will face monthly bill increases of approximately $2.50 next year, with similar increases expected for the rest of the decade. By 2029, bills will have risen by $8 a month.
Critics argue the rate hike will worsen Florida's affordability crisis, noting that homeowners already have seen their bills rise 45% since 2021.
FPL President and CEO Armando Pimentel described the approval as a “win for our customers and a win for the entire state.”
He added that, “Today's vote enables FPL to continue to deliver some of America's most reliable electric service and meet the needs of our fast-growing state — and we project will keep customer bills well below the national average through the end of the decade.”
The rate hike was approved despite sustained public outcry.
Last month, 29 Florida elected officials sent a letter to Governor DeSantis and his Public Service Commission urging them to reject FPL’s rate hike proposal. That echoed pushback from Miami-area advocates and experts along with Congressional Representative Kathy Castor (D-FL); the Manatee County Commission; the City of Pembroke Pines; and the Office of Public Counsel (OPC) opposing the rate hikes.
“Four years ago, FPL was awarded one of the largest rate hikes in U.S. history. Today, they’ve made history again at nearly double that amount," said Food & Water Watch Senior Florida Organizer Brooke Ward, who called it a "shameful" decision.
“People are not asking for diamonds or gold — while greedy utilities keep raking in record profits, regular Floridians want to be able to afford running their air conditioners and heaters. The legislature must pass affordable energy legislation this session to ensure fair electricity prices.”
“FPL is one of the most profitable companies in the state, and yet the PSC chose to give them a handout while Floridians scrape by, juggling the cost of everyday necessities like groceries, medication, and child care,” said Catalyst Miami Climate Justice Program Manager, Maria Claudia Schubert-Fontes.
“Last year alone, FPL disconnected roughly 3 million Floridians across the state for nonpayment. These newly approved rate increases will undoubtedly leave even more of our neighbors in the dark."
According to a news release from Catalyst Miami, founded in 1996 by now Miami-Dade County Mayor Daniella Levine Cava, its analysis shows rates climbing as much as $14 a month, or an additional $175 annually in energy, fuel and taxes starting in January 2026, and by January 2028 those bills would be some $289 more annually.
A Food & Water Watch analysis finds that from December 2020 to January 2026, the average FPL customer using 1000 kWh/month will see bills go up by 45%, or actually $513 more annually.
The fight might not be over.
According to Bradley Marshall, attorney with Earthjustice representing Florida Rising, the League of United Latin American Citizens of Florida, and the Environmental Confederation of Southwest Florida in the rate case, he said: “We look forward to reviewing the written decision and expect that this case will be appealed to the Florida Supreme Court, where we look forward to presenting our case.”
Thursday's settlement is expected to lead to base-rate increases of $945 million in 2026 and $705 million in 2027. FPL also would collect additional amounts in 2028 and 2029 for solar-energy and battery-storage projects.
The OPC also reported that FPL shareholder profits will be the highest in the lower 48 states with a return on equity at 10.95%. To guarantee these shareholder profits, half of every dollar FPL requested will go toward those profits and associated taxes.
In 2025, FPL customers paid an additional $12 more monthly in storm recovery charges from the 2024 storms. The approval for those charges expires in January 2026.
Thursday's approval marked the second base rate hike the PSC has approved this month alone. The PSC approved Tampa Electric’s (TECO) 2026 base rate adjustment on Nov 4, which spiked people’s bills by an additional 6%.
