The Florida Public Service Commission (PSC) approved a four-year, roughly $6.9 billion settlement with Florida Power & Light (FPL) on Thursday, a move opponents say amounts to the largest rate hike in U.S. history.
FPL, the state’s largest investor-owned utility with about six million accounts serving roughly 12 million customers, said in a press release that the settlement will allow the company to continue making “smart, necessary investments in the grid to power Florida’s growth — while keeping customer bills well below the national average.”
The plan drew strong pushback. More than two dozen local and state elected officials sent a letter last month to Gov. Ron DeSantis and the PSC urging them to reject the proposal.
The rate hike also became an issue in the attorney general race. Former Democratic state Sen. José Javier Rodriguez, who is running for attorney general next year, called on Florida Attorney General James Uthmeier to intervene. Attorneys general in states such as Michigan, Connecticut, and Arizona have challenged proposed utility rate hikes this year, and former Florida attorneys general Bill McCollum and Charlie Crist have previously intervened in similar cases. Uthmeier declined to get involved.
Shameful decision
Bradley Marshall, who represented several groups opposed to the rate hike, said the fight is not over.
“We look forward to reviewing the written decision and expect this case will be appealed to the Florida Supreme Court, where we look forward to presenting our case,” he told the Phoenix. “This decision hurts the people who are already struggling with higher power bills.”
Other critics rebuked the PSC.
“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. This shameful decision illustrates why our state energy regulators cannot be trusted to ensure that families have reliable, affordable energy,” said Food & Water Watch Senior Florida organizer Brooke Ward in a written statement.
“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.”
“By approving this rate hike, the PSC has handed FPL another blank check while Floridians struggle to keep the lights on,” said Alyssa White, climate justice organizer for Florida Student Power. “This is a slap in the face to every family, student, and small business already drowning in high bills. Our communities deserve an energy system that puts people over profit, and we will continue to build the power to make that happen!”
FPL initially wanted bigger rate hike
FPL originally sought a four-year, $9.8 billion rate hike. Shortly before the PSC was set to hold hearings in August, the utility announced an eleventh-hour “agreement in principle” with a group of organizations including Walmart, RaceTrac, Wawa, and the Florida Retail Federation. That agreement lowered the increase to about $6.9 billion while keeping a return on equity of 10.95%, a key measure of financial performance.
The revised proposal drew objections from the Office of Public Counsel (OPC), which represents Florida consumers. Working with groups such as Florida Rising and the League of United Latin American Citizens of Florida (LULAC), the OPC developed its own counterproposal without FPL’s involvement.
Their plan would reduce the average residential customer’s base bill by nearly half compared to FPL’s original request, lowering the increase to $5.2 billion with a proposed return on equity of 10.6%.
PSC Chairman Mike La Rosa rejected the OPC proposal on Sept. 12, saying FPL was “an indispensable party to any settlement.” He said that although their plan could not be submitted as a settlement, it could be included as testimony opposing FPL’s agreement filed in late August.
FPL says that in 2026, a typical 1,000-kWh bill for most residential customers will rise by $2.50 a month, or about 2%, increasing from $134.14 to $136.64. In Northwest Florida, the typical residential bill will stay relatively flat, dropping slightly from $143.60 to $141.36 in 2026.
“We appreciate the Florida Public Service Commission’s thorough review of our rate plan,” FPL president and CEO Armando Pimentel said in a statement.
“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. As we begin our second century of serving Florida, approval of this plan is a win for our customers and a win for the entire state.”
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