The Florida Public Service Commission (FPSC) has approved a settlement agreement with Florida Power & Light Company (FPL) and participating intervenors that sets new electricity rates for the next four years, beginning January 1, 2026.
Under the agreement, FPL will raise rates to generate $945 million in additional annual revenue starting in 2026. This figure is about 39% less than what FPL initially requested. A further increase of $705 million will be implemented in 2027, which is also lower than the original proposal by approximately 24%. The settlement includes provisions for expanded customer protections, enhanced financial assistance programs, and continued investments in grid reliability.
Extensive public input was gathered during the review process. The Commission held ten customer service hearings throughout FPL’s service area where more than 400 people spoke. Over 43,000 written comments were submitted, and more than 1,146 official filings were made on the docket. The review also included testimony from over 50 witnesses and more than 70 hours of evidentiary hearings.
All intervening parties’ testimonies were considered by Commissioners. These parties included consumer advocates, environmental groups, large industrial users, retail businesses, electric vehicle charging providers, and federal agencies such as the Office of Public Counsel, Florida Rising, and the Florida Industrial Power Users Group.
Key components of the settlement include:
– Significant reductions to FPL’s initial revenue requests: a reduction of about $600 million for 2026 and $222 million for 2027.
– Expansion of customer protections and assistance programs: $15 million allocated for payment assistance to eligible customers.
– Introduction of new disconnection safeguards that prevent shutoffs due to nonpayment during periods of extreme heat or cold.
– Enhancement of storm reserves aimed at shielding customers from potential rate increases after severe weather events.
– Addition of new solar and battery generation projects between 2027 and 2029; these will be subject to cost-effectiveness reviews before base rate adjustments are made.
– Creation of a new large-load tariff designed to support energy needs arising from emerging technologies while safeguarding current customers from extra costs.
– Launching a pilot program for long-duration battery storage technologies beyond lithium-ion batteries.
– Return on equity set at 10.95%, down from an originally requested 11.9%. According to estimates provided by FPSC, this adjustment results in an estimated $1.95 billion reduction over four years.
For typical residential customers using 1,000 kWh per month starting January 2026:
– In Peninsular Florida: bills will rise by $2.50 to reach $136.64
– In Northwest Florida: bills will decrease by $2.24 to reach $141.36
These amounts account for all elements including fuel charges and taxes.
FPL currently supplies electricity to about six million accounts across forty-three counties in Florida.
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