The Florida Public Service Commission (FPSC) has approved a settlement agreement with Florida Power & Light Company (FPL) and participating intervenors that sets a new four-year rate plan. The plan will be in effect from January 1, 2026, through December 31, 2029.
The agreement allows FPL to raise rates and charges to generate $945 million in additional annual revenues starting January 1, 2026. This is about 39% less than the company’s original request. Another increase of $705 million annually will begin on January 1, 2027, which is a reduction of approximately 24% from the initial filing.
The settlement includes expanded financial assistance programs for customers, new safeguards against disconnection during extreme weather conditions, and continued investment in grid reliability and resilience. According to the FPSC, “The approved settlement includes robust customer protections, expanded financial assistance programs, and continued investment in the reliability and resilience of Florida’s electric grid.”
In its review process following FPL’s initial rate request in February, the Commission held ten customer service hearings across FPL’s territory. More than 400 speakers gave comments at these hearings. Additionally, over 43,000 written comments were submitted by customers. The docket saw more than 1,146 official filings and included testimony from more than 50 witnesses as well as over 30 depositions. There were also more than 70 hours of evidentiary hearing testimony and cross-examination, with over 600 exhibits entered into the record.
Commissioners reviewed input from various groups including consumer advocates, environmental organizations, 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 elements of the settlement include:
– A reduction in FPL’s revenue requests: about $600 million less for 2026 (a cut of approximately 39%) and about $222 million less for 2027 (a cut of around 24%).
– An allocation of $15 million for payment assistance aimed at eligible customers.
– New rules prohibiting service disconnections due to nonpayment during periods when temperatures reach above 95°F or fall below 32°F.
– Enhanced storm reserves designed to help protect customers from future rate increases after severe weather events.
– Plans for new solar and battery generation projects between 2027 and 2029; these will be subject to cost-effectiveness criteria before any base rate adjustments are considered.
– Introduction of a large-load tariff—the first in Florida—to meet energy needs from emerging technologies while protecting existing customers from extra costs.
– Launching a Long-Duration Battery Storage Pilot to study advanced energy storage beyond lithium-ion technology.
– Setting Return on Equity at 10.95%, down from an originally requested level of 11.9%. This change is expected to result in an estimated $1.95 billion reduction over four years.
Regarding bill impacts for residential customers starting January 2026:
– In Peninsular Florida: typical bills for using 1,000 kWh per month will be $136.64—a $2.50 increase compared to current levels.
– In Northwest Florida: typical bills for using the same amount will be $141.36—a decrease of $2.24 compared to current levels.
These estimates include all parts of electric service costs such as fuel charges and taxes.
FPL currently serves about six million customer accounts across forty-three counties in Florida.
