Could FPL’s $9B rate hike deepen FL energy affordability crisis?
Public News Service
By Trimmel Gomes
This article originally appeared on PublicNewsService.org.
Consumer advocates warned Florida Power & Light's proposed rate increase would mean its customers would be locked into supporting natural gas over cleaner, price-stable alternatives, like solar energy.
(Silberfuchs/Pixabay)
Florida Power & Light's request for a nearly $9 billion rate hike, possibly the largest in state history, has sparked concern about the potential burden on people already struggling with high energy costs.
The Florida Public Service Commission is reviewing the proposal, which the utility said is needed for grid resilience, population growth and storm recovery. If approved, the hike would raise the average residential bill by at least $200 a year by 2027, in addition to a $150 "storm recovery fee" already on bills this year.
Maria Claudia Schubert-Fontes, climate justice program manager for the advocacy group Catalyst Miami, warned the effects on low-income households could be devastating.
"Energy burden is the percentage of income that's spent on home energy bills and also is considered 'energy burdened' if it's at 6%," Schubert-Fontes explained. "So, 12% is way above that threshold and folks are spending a large portion of their income just to keep the lights on every month."
Florida Power & Light, which serves about 12 million people, has said the increase is necessary to continue providing reliable service as Florida grows. In 2024, it reported more than $4.5 billion in earnings, while its parent company NextEra Energy posted nearly $7 billion in profit.
Schubert-Fontes argued customers are already being squeezed and pointed out the proposal includes a return on equity far exceeding industry norms.
"Part of FPL's proposal is that there's an 11.9% return on equity, which is far higher than the industry standard, which sits around, like, 9%," Schubert-Fontes noted. "This is money that goes directly into the pockets of shareholders."
The Public Service Commission has completed a series of in-person hearings. Local groups urged regulators to prioritize consumers, particularly vulnerable households and fixed-income seniors. A final decision is expected later this year.
By Trimmel Gomes
This article originally appeared on PublicNewsService.org.
Consumer advocates warned Florida Power & Light's proposed rate increase would mean its customers would be locked into supporting natural gas over cleaner, price-stable alternatives, like solar energy.
(Silberfuchs/Pixabay)
Florida Power & Light's request for a nearly $9 billion rate hike, possibly the largest in state history, has sparked concern about the potential burden on people already struggling with high energy costs.
The Florida Public Service Commission is reviewing the proposal, which the utility said is needed for grid resilience, population growth and storm recovery. If approved, the hike would raise the average residential bill by at least $200 a year by 2027, in addition to a $150 "storm recovery fee" already on bills this year.
Maria Claudia Schubert-Fontes, climate justice program manager for the advocacy group Catalyst Miami, warned the effects on low-income households could be devastating.
"Energy burden is the percentage of income that's spent on home energy bills and also is considered 'energy burdened' if it's at 6%," Schubert-Fontes explained. "So, 12% is way above that threshold and folks are spending a large portion of their income just to keep the lights on every month."
Florida Power & Light, which serves about 12 million people, has said the increase is necessary to continue providing reliable service as Florida grows. In 2024, it reported more than $4.5 billion in earnings, while its parent company NextEra Energy posted nearly $7 billion in profit.
Schubert-Fontes argued customers are already being squeezed and pointed out the proposal includes a return on equity far exceeding industry norms.
"Part of FPL's proposal is that there's an 11.9% return on equity, which is far higher than the industry standard, which sits around, like, 9%," Schubert-Fontes noted. "This is money that goes directly into the pockets of shareholders."
The Public Service Commission has completed a series of in-person hearings. Local groups urged regulators to prioritize consumers, particularly vulnerable households and fixed-income seniors. A final decision is expected later this year.
