Florida Power & Light on Friday that would lead to higher electric bills for customers over the next four years, with the utility pointing to issues such as growth and a need to build more solar-energy facilities.
The base-rate proposal, filed at the Florida Public Service Commission, would lead to increases of $1.545 billion in 2026 and $927 million in 2027. Also, FPL would pass along costs to customers in 2028 and 2029 for solar-energy and battery-storage projects.
鈥淐ontinued growth and the need for additional generation are among the principal drivers of FPL鈥檚 increased revenue requirements,鈥� . 鈥淔PL projects to add 335,000 more customers through the end of 2029. To meet this new growth and maintain operational reliability, FPL must invest in generation, transmission, and distribution. Each of FPL鈥檚 new customers deserves the same outstanding reliability and low bills that existing customers have long experienced.鈥�
FPL in December submitted a letter to the Public Service Commission that outlined its plans to seek base-rate increases. But the proposal filed Friday was more detailed and will launch a months-long rate case that will end with a decision by the regulatory commission. FPL is operating under a four-year rate plan that will expire at the end of 2025.
Base rates make up a major part of customers鈥� monthly bills, along with costs such as power-plant fuel, and the commission will consider voluminous amounts of information and hold hearings in the coming months.
Consumer groups to fight higher rate request
The state Office of Public Counsel, which represents consumers, and business and consumer groups have already given notice that they will intervene in the FPL case.
In a petition to intervene filed Tuesday, for example, the Southern Alliance for Clean Energy said costs 鈥渨ill be borne by FPL customers through their power bills, including FPL customers that are SACE (Southern Alliance for Clean Energy) members.鈥�
鈥淭his proceeding will provide SACE and other parties, and the commission, the opportunity to test the prudency of investments made by FPL, and expenses, prior to costs being passed on to FPL customers, including FPL customers who are also SACE members,鈥� the petition said.
鈥淭his would be the largest rate increase in United States history, and that鈥檚 why we鈥檙e fighting it,鈥� said , a senior attorney with Earthjustice, in a statement. His organization is representing Florida Rising, League of United Latin American Citizens, and the .
In addressing monthly bills, utilities typically cite a benchmark of residential customers who use 1,000 kilowatt hours of electricity a month. FPL in recent years also has had different bill amounts for customers in its traditional service area and Northwest Florida customers who were previously served by Gulf Power Co.
FPL customers in the traditional service area, including South Florida, who use 1,000 kilowatt hours a month currently pay $134.14. Under the proposal, that is estimated to go to $142.37 in 2026; $148.29 in 2027; $149.93 in 2028; and $151.99 in 2029, according to the utility.
The proposal includes projects to upgrade power plants and to add numerous solar-energy facilities. For instance, the utility could build 1,490 megawatts of solar projects in 2028 and 1,788 megawatts of solar projects in 2029, along with battery-storage facilities, according to the proposal.
An issue that will likely draw heavy attention during the case will be FPL鈥檚 requested return on equity 鈥� a key measure of profitability. The commission typically approves a range of allowable return on equity and a 鈥渕idpoint鈥� in the range.
FPL proposed a midpoint of 11.9 percent, in part citing a need to attract investor money. As a comparison, the commission in December approved a 10.5 percent midpoint in a Tampa Electric Co. rate case.
鈥淢aintaining a strong financial position under all market conditions, good and bad, is critical for an essential service provider with an obligation to serve,鈥� the FPL proposal said. 鈥淔PL鈥檚 liquidity and appropriate capital structure has supported FPL鈥檚 ability to keep the lights on and access capital under terms that benefit customers. The success is attributable, in part, to keeping borrowing costs relatively low and providing competitive returns that encourage investors to continue to provide the capital needed to maintain and enhance FPL鈥檚 level of service.鈥�
But a collection of groups quickly issued a news release Friday criticizing FPL鈥檚 proposed return on equity and the broader rate request.
鈥淢onopoly utilities should not be making excessive profits at the expense of families and businesses struggling to make ends meet,鈥� said Yoca Arditi-Rocha, executive director of The CLEO Institute, a non-profit group that works on climate issues.
