TALLAHASSEE, Fla. — Florida Power & Light customers will see their electric bills increase starting in January after the state's Public Service Commission (PSC) on Thursday approved a $7 billion rate hike. This is the utility's biggest rate hike in its history.
FPL initially requested a nearly $10 billion rate increase over four years, but after significant public outcry, the utility reached a settlement that reduced the request by almost 40%.
WATCH BELOW: Regulators green-light FPL's largest rate hike in utility's history
The commission determined that average customers will face monthly bill increases of approximately $2.50 next year, with similar increases expected for the rest of the decade.
WPTV has followed the back and forth for months. Initially, FPL wanted to raise monthly bills by $17, but then worked out a new settlement.
Critics argue the rate hike will worsen Florida's affordability crisis, noting that homeowners have already seen their bills rise 45% since 2021. The deal also drew criticism for cutting electric rates for large commercial users while residential customers face increases.
"I like a lot of the provisions in the settlement, and there are some that give me heartburn," PSC Commissioner Andrew Giles Fay said.
WATCH BELOW: FPL customers sound off ahead of rate hike approval
FPL defended the rate increases as necessary to accommodate Florida's population growth and replace aging infrastructure in a state vulnerable to severe weather events.
Commission members ultimately sided with FPL, calling the settlement fair despite reservations.
"I think the settlement is the best thing for the rate payers and the utility," PSC Commissioner Art Graham said. "It is not a dream settlement, but it is the one before us, and I think it does the job it's supposed to do."
FPL's president praised the commission's vote and projected that ratepayer bills will remain well below the national average for the rest of the decade.
"Under the settlement, FPL will implement an increase in rates and charges designed to generate $945 million in additional annual revenues beginning January 1, 2026, a reduction of approximately 39% from its original request. An additional increase to generate $705 million annually will take effect January 1, 2027, representing a 24% reduction from the as-filed case," the state's PSC said in a statement.
FPL provides electric service to about 6 million customer accounts, representing about 12 million Florida residents across 43 counties.
The new rates go into effect Jan. 1, 2026.
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