Florida Power & Light reaches agreement with stakeholders to keep customer bills below national average.

Florida Power & Light Company (FPL) has reached an agreement in principle with key stakeholders to keep customer bills well below the national average through 2029. The agreement is supported by various groups, including the Florida Retail Federation and Walmart. The settlement would enable FPL to make smart investments while keeping customer bills low. FPL plans to finalize and file the agreement with the Florida Public Service Commission by August 20.

Florida Power & Light Company (FPL) has reached an agreement in principle with key stakeholders to keep customer bills well below the national average through 2029. This agreement, supported by various groups including the Florida Retail Federation and Walmart, aims to balance affordable rates with necessary infrastructure investment. The settlement would enable FPL to make smart investments while keeping customer bills low.

The agreement, which follows FPL's February 28 petition for new rates for 2026-2029, has been well-received by multiple organizations. It is supported by the Florida Retail Federation, the Florida Industrial Power Users Group, and clean energy advocates. The agreement seeks to suspend technical hearings on the original rates petition and finalize the settlement by August 20, 2025. If approved, the new rates would become effective January 1, 2026.

This regulatory milestone significantly reduces uncertainty about FPL's revenue framework for the next four years. The settlement bypasses contentious technical hearings, reflecting a broad stakeholder buy-in. FPL has responded to over 3,000 interrogatories from 13 intervening parties, indicating a thorough and inclusive process.

From an operational standpoint, the agreement would enable FPL to continue capital deployment in Florida's growing market while maintaining bills well below the national average. This pricing advantage is crucial in a high-growth state where population expansion drives electricity demand but requires continuous infrastructure investment to maintain reliability.

While specific financial terms have not been disclosed yet, the constructive regulatory outcome likely provides FPL with the predictable revenue stream necessary to fund its capital program without excessive rate shock to customers. The scheduled January 1, 2026 implementation aligns with the expiration of the current rate agreement, providing seamless regulatory continuity that investors typically value in regulated utilities.

This agreement marks a significant step forward in ensuring FPL's financial stability and its ability to invest in Florida's energy infrastructure. The regulatory process has been extensive, reflecting FPL's commitment to transparency and stakeholder engagement.

References:
[1] https://www.stocktitan.net/news/NEE/fpl-reaches-agreement-in-principle-with-key-stakeholders-that-would-0bhxly7e2lfp.html
[2] https://www.cbsnews.com/miami/news/florida-utilities-largest-electric-bill-rate-hike/