Hearings wrap up in FPL rate hike case, PSC to consider testimony at a Nov. 20 meeting

PENSACOLA

Hearings wrap up in FPL rate hike case, PSC to consider testimony at a Nov. 20 meeting

Tom McLaughlin

Pensacola News Journal

Updated Oct. 17, 2025, 4:05 p.m. CT

• the Florida Public Service Commission has concluded its review of Florida Power and Light rate request and a proposed settlement agreement.
• If the settlement agreement is reached, Northwest Florida consumers would actually see their monthly rates drop by about a dollar in 2026, from an estimated $143.60 to $142.66.
• Rates would increase incrementally from 2026 levels each year over the course of the four year contract to eventually reach an estimated $148.15 per month in 2029.

This story was updated because an earlier version contained an inaccuracy.

Following a nine-day hearing at which the merits and flaws of a rate hike proposed by Florida Power and Light were debated, the Florida Public Service Commission has concluded its review of the rate request and a proposed settlement agreement.

The parties on either side of the issue now have the opportunity to submit post-hearing briefs that will serve as final arguments in the case, and a Special Commission Conference will be convened Nov. 20 to consider the settlement agreement, an FPL news release said.

The proposed settlement agreement, reached between the utility and 10 key stakeholders, was announced Aug. 20. It shaved about $2.9 billion in total company revenues from FPL's initial four-year rate, which had been introduced in February.

If the settlement agreement is reached, Northwest Florida consumers would actually see their monthly rates drop by about two dollars in 2026, from an estimated average of $143.60 for 1,000 kilowatt hours to $141.36.

Rates would increase incrementally from that level for each year over the course of the four year contract to eventually reach an estimated $148.15 per month in 2029.

Initial estimates in February had monthly rates rising to $151.99 by 2029. The new rate schedule has the rates increasing by a total of $4.55 at the end of four years rather than $8.39.

On the Florida Peninsula, rates will climb next year by $2.50 to $136.64. Those rates would see increases each year culminating with the same $148.15 monthly rate in 2029 to bring the rest of the state in line with what Northwest Florida customers are paying. That's an increase of $14.01 monthly at the end of four years rather than the original request of $17.99.

The settlement agreement is opposed 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.

OPC representatives attending the recently concluded hearings, which got underway Oct. 6, argued that the FPL rate hike put utility stock holders ahead of customers.

"FPL would have you believe that protecting its interests is your duty," Ali Wessling, an attorney for OPC told the PSC board.

Wessling claimed the settlement agreement negotiated between FPL and large business organization "would cause harm to the welfare of FPL's customers and result in unfair, unjust, unreasonable and unaffordable rates."

If the proposed settlement agreement is accepted as laid out, FPL would see its revenues climb through the imposition of rate hikes by $945 million in 2026 and $766 million in 2027, the utility said.

FPL would 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 proposed settlement agreement was reached 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.