Florida Power & Light rate schedule increase approved after lengthy battle

Florida Power & Light rate schedule increase approved after lengthy battle

Tom McLaughlin

Pensacola News Journal

Nov. 20, 2025Updated Nov. 23, 2025, 6:50 a.m. CT

The Florida Public Service Commission voted Nov. 20 to approve a Florida Power and Light four-year rate schedule reached in August negotiations between the utility and 10 key stakeholders.

After months of public debate with stakeholders, opponents and FPL, commissioners discussed pros and cons of the agreement for about an hour before voting to approve it at a Special Agenda meeting.

Under the new rate schedule, Northwest Florida consumers will see their monthly rates drop by about $2 in 2026, from an estimated average of $143.60 for 1,000 kilowatt hours to $141.36. For customers on the Florida Peninsula, who presently pay less than those in the Panhandle, rates will climb next year by $2.50 to $136.64.

Rates in both parts of Florida would see increases each year following 2026, culminating at the same $148.15 monthly rate in 2029. At the end of the four-year term Panhandle customers will have seen an overall monthly increase of $6.79 while costs for the rest of the state will have risen by $14.01 per month.

"This settlement agreement represents a balanced resolution for all parties, not just the utilities," PSC board member Gary Clark said before the vote was taken.

Clark said the agreement provides customer protections, allows for continued utility investments and "results in rates that fall into the realm of reasonableness."

"This is definitely in the public interest," he said.

The settlement agreement shaved about $2.9 billion in total company revenues from FPL's initial four-year rate, which had been introduced in February and met with public outcry.

FPL President and CEO Armando Pimentel expressed satisfaction with the negotiated settlement.

"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," he said in a statement. "Approval of this plan is a win for our customers and a win for the entire state."

Opposition to FPL settlement

The settlement agreement was opposed throughout the negotiation process by the Office of Public Counsel, which represents FPL's 6 million customers, and a handful of other groups, including Florida Rising and Floridians Against Unfair Rates, which was founded to fight the rate hikes.

Their reaction to the approved settlement was swift.

"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. "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."

OPC representatives had argued at an October hearing that the FPL rate hike put utility stock holders ahead of customers.

Under the approved settlement, FPL will see its revenues climb through the imposition of rate hikes by $945 million in 2026 and $766 million in 2027, the utility said.

FPL will also collect additional amounts in 2028 and 2029 for solar-energy and battery-storage projects, it said.

FPL's February rate plan sought rate hikes that would have produced revenues of $1.545 billion in 2026 and $927 million every year thereafter through 2029. A total revenue estimate over the four-year course of the plan, figuring in proposed increases for solar and battery projects, stood at $10 billion.

The settlement agreement establishes large load tariffs that will compel heavy electricity using businesses such as data centers to enter a 20-year minimum term contract with penalties for early contract exit. FPL contends the tariff's will prevent ratepayers from footing the bill for supplying power to data centers as they arrive in Florida.

The approved settlement agreement was reached through negotiations between FPL and groups that included the Florida Industrial Power Users Group, Florida Retail Federation, Florida Energy for Innovation Association, Walmart Inc., EVgo Services, Americans for Affordable Clean Energy, Circle K, RaceTrac, Wawa, Electrify America, Federal Executive Agencies, Armstrong World Industries, and the Southern Alliance for Clean Energy.