FPL's New Rate Plan: Balancing Reliability, Resiliency, and Affordability

In the ever-evolving energy landscape, Florida Power & Light (FPL) has filed details of a new rate plan designed to power the growing state with an unmatched combination of high reliability and low bills. As one of the largest electric utilities in the U.S., FPL is committed to delivering clean, affordable, and reliable electricity to its customers while investing in the future of energy.

FPL's proposed rate plan for 2026-2029 aims to balance the need for infrastructure investment with maintaining affordable bills for customers. The plan focuses on several key priorities to achieve this balance:

1. Delivering reliable service: FPL's plan supports continued investments in critical infrastructure and technologies that have made its distribution service reliability 59% better than the national average. These investments help speed restoration and avoid outages, benefiting customers. For instance, in 2024, smart-grid devices helped avoid 2.7 million customer outages, including over 800,000 outages during hurricanes Debby, Helene, and Milton.
2. Diversifying electricity generation: To meet customer growth and increasing demand, FPL will invest in low-cost solar and battery storage technology to complement its existing power plant fleet. This diversification helps protect customers from fuel price volatility. For example, FPL has saved customers more than $16 billion in fuel costs over the last nearly 25 years by modernizing its power plant fleet and investing in low-cost solar energy centers. In 2024 alone, the company saved customers $867 million in fuel costs through its fuel-saving technologies.
3. Keeping bills as low as possible: FPL continuously leverages technology and drives down costs to improve efficiency. Modernizing its power plant fleet has saved customers billions of dollars in fuel costs, and investing in solar has saved customers more than $890 million in fuel costs. FPL's non-fuel operations and maintenance costs per customer are nearly 26% lower than they were a decade ago, saving customers about $2.9 billion per year compared to an average-performing utility.
4. New infrastructure for growth: FPL has added about 275,000 customer accounts since 2021 and expects to add about 335,000 more through the end of 2029. This growth requires significant new generating capacity and distribution infrastructure to meet demand in one of America's fastest-growing states.

FPL estimates that its proposal, along with projections for fuel and other costs, would increase a typical residential customer bill by an average annual rate of approximately 2.5% from January 2025 through 2029. Even with the proposed rate adjustment, FPL bills would remain well below the national average and below many other Florida electric utilities.

FPL's plan to diversify its generation mix, including investments in solar and battery storage, has a significant impact on long-term fuel costs and bill stability for customers. By reducing its reliance on traditional fossil fuels, FPL can protect customers from fuel price volatility and keep bills as low as possible. This approach helps FPL maintain its position as one of the most reliable and cost-effective electric utilities in the United States.

In conclusion, FPL's new rate plan is designed to balance the need for infrastructure investment with maintaining affordable bills for customers. By focusing on reliability, resiliency, and low bills, FPL aims to provide the best combination of electricity services to its customers while investing in the future of energy. As the company continues to diversify its generation mix and modernize its power plant fleet, customers can expect reliable, clean, and affordable electricity for years to come.