Florida Power & Light Seeks Record $10 Billion Rate Hike for Electricity Over Four Years.

Florida Power & Light Company (FPL) proposes a nearly $10 billion rate hike for electricity over the next four years, which would be the largest utility hike in US history. The increase would cover the installation of solar generation and battery storage facilities. Environmental advocates argue that the hike would cause financial strain for Floridians and funnel more money than necessary to FPL stakeholders. The proposal is set to be defended at a two-week hearing before the Florida Public Service Commission.

Florida Power & Light Company (FPL) has submitted a proposal to the Florida Public Service Commission for a nearly $10 billion rate hike over the next four years, which would be the largest utility rate increase in U.S. history. The proposed increase, outlined in a petition filed in February, aims to cover the installation of solar generation and battery storage facilities. Environmental advocates argue that the hike would impose significant financial strain on Floridians and potentially benefit FPL stakeholders more than necessary.

The rate hike, if approved, would include two base rate increases in 2026 and 2027, and additional hikes in 2028 and 2029. FPL contends that the increases are essential to ensure grid reliability, diversify energy sources, and reduce fuel costs. However, critics contend that the primary beneficiaries would be FPL stockholders, with the company seeking an investor return on equity of 11.9%, well above the national average of 9.6% [1].

The proposal has sparked opposition from various groups, including Floridians Against Increased Rates, which has determined that the rate hike would add $1.545 billion in 2026 and $927 million annually thereafter through 2029, totaling approximately $8.9 billion. This figure could rise further if FPL secures authority to increase customer costs for new solar and battery projects in 2028-29, potentially bringing the total rate increase to about $10 billion [1].

The Office of Public Counsel, an agency created to represent consumers in utility-related matters, has requested that the commission decrease customer rates by $620.5 million in 2026 and limit FPL's allowable increase to $35.196 million in 2027. The Office also recommends denying authorization for proposed 2028 and 2029 solar base rate adjustments and a cumulative base rate increase of no more than $105.5 million for the period of 2026-29 [1].

The Public Service Commission will consider the rate hike in a two-week hearing beginning on August 11. The hearing will feature testimony from around 60 witnesses, including attorneys representing entities like the United States Air Force and Walmart. The Office of Public Counsel will lead the opposition to the rate hike [1].

FPL's history of success in rate cases before the commission has raised concerns about the agency's independence. Since 2010, FPL has typically secured most, if not all, of its rate hike requests. Critics argue that the commission is too influenced by the utility industry, and some have called for greater transparency and accountability in its actions [1].

The hearing will provide an opportunity for stakeholders to voice their concerns and for the commission to make an informed decision. The outcome of the hearing will have significant implications for FPL customers and the broader Florida economy.

References:
[1] https://www.pnj.com/story/news/local/2025/08/05/florida-power-and-light-pushes-largest-rate-hike-in-u-s-history/85508181007/
[2] https://www.cbsnews.com/news/florida-utilities-largest-electric-bill-rate-hike/