The Florida Public Service Commission (FPSC) has approved a settlement agreement with Florida Power & Light Company (FPL) and participating intervenors, setting new electric rates for the period from January 1, 2026, through December 31, 2029.
Under the terms of the settlement, FPL will increase its rates to generate $945 million in additional annual revenue starting January 1, 2026. This figure is about 39% lower than the company’s original request. Another rate increase will take effect on January 1, 2027, raising an additional $705 million annually—24% less than initially proposed.
The agreement includes several measures aimed at protecting customers and enhancing grid reliability. It expands financial assistance programs and introduces safeguards against disconnections during periods of extreme heat or cold. The settlement also provides for increased storm reserves to help avoid sudden rate hikes after severe weather events.
FPL’s initial rate request was filed in February. The FPSC’s review process included ten customer service hearings across FPL’s service area, where more than 400 speakers gave comments. Over 43,000 written comments were submitted by customers. The case involved more than 1,146 official filings, testimony from over 50 witnesses, and more than 70 hours of evidentiary hearings.
The commission considered input from various parties such as consumer advocates, environmental groups, large industrial users, retail businesses, electric vehicle charging providers, and federal agencies including the Office of Public Counsel and Florida Rising.
Key elements of the four-year plan include reductions to FPL’s original revenue requests—approximately $600 million less for 2026 and $222 million less for 2027. There is also a provision for $15 million in payment assistance for eligible customers. New rules prohibit disconnections for nonpayment when temperatures reach above 95°F or below 32°F.
The plan calls for new solar and battery generation projects in the years ahead if they meet cost-effectiveness criteria that will be reviewed by the commission before any base rate adjustments are made. A new large-load tariff will be introduced to address growing energy needs from emerging technologies while shielding existing customers from extra costs. Additionally, a pilot program will study long-duration battery storage beyond current lithium-ion technology.
Return on equity has been set at 10.95%, down from FPL’s requested 11.9%. This reduction is expected to save approximately $1.95 billion over four years.
For residential customers using 1,000 kilowatt-hours per month starting in January 2026:
– In Peninsular Florida: bills will rise by $2.50 to $136.64.
– In Northwest Florida: bills will decrease by $2.24 to $141.36.
These figures account for all aspects of electric service charges.
FPL serves around six million customer accounts across forty-three counties in Florida.
