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FLORIDA - Florida Power & Light (FPL) has submitted a proposal to the Florida Public Service Commission (PSC) seeking approval for rate hikes over the next four years to accommodate customer growth and bolster renewable energy projects.
The utility's plan outlines base-rate increases of $1.545 billion in 2026 and $927 million in 2027.
Additionally, FPL intends to pass along costs to customers in 2028 and 2029 to fund solar-energy and battery-storage projects.
The proposal aims to support the anticipated addition of approximately 335,000 new customers by the end of 2029, necessitating investments in generation, transmission, and distribution infrastructure to maintain operational reliability.
FPL's current four-year rate plan is set to expire at the end of 2025.
The newly filed proposal initiates a comprehensive review process by the PSC, which will include hearings and input from various stakeholders, such as the state Office of Public Counsel, consumer groups, and business organizations.
For residential customers consuming 1,000 kilowatt-hours (kWh) per month, the proposed rate adjustments are as follows:
- Traditional Service Area Customers:
- Current bill: $134.14
- 2026: $142.37
- 2027: $148.29
- 2028: $149.93
- 2029: $151.99
- Northwest Florida Customers (formerly Gulf Power Co.):
- Current bill: $143.60
- 2026: $147.10
- 2027: $148.29
- 2028: $149.93
- 2029: $151.99
These figures indicate an average annual increase of approximately 2.5% for residential customers from January 2025 through 2029.
FPL's proposal includes plans to upgrade power plants and expand renewable energy initiatives.
Specifically, the utility aims to construct 1,490 megawatts (MW) of solar projects in 2028 and 1,788 MW in 2029, complemented by battery-storage facilities.
These efforts are designed to diversify FPL's energy portfolio, reduce fuel costs, and enhance service reliability.
Return on Equity and Stakeholder Concerns
A notable aspect of the proposal is FPL's request for a return on equity (ROE) midpoint of 11.9%, which exceeds the 10.5% midpoint approved for Tampa Electric Co. in December.
FPL argues that this higher ROE is necessary to attract investor capital for ongoing and future infrastructure projects.
The PSC will conduct a thorough evaluation of FPL's rate increase proposal, considering input from all stakeholders.
The decision-making process will involve detailed analyses and public hearings to ensure that any approved rate adjustments are justified and in the best interest of Florida's consumers.
FPL maintains that, even with the proposed increases, its residential customer bills will remain below the national average and lower than those of many other Florida utilities.
The utility emphasizes its commitment to delivering reliable service while investing in sustainable energy solutions to meet the growing demands of its customer base.