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.
According to the FPSC, 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 of $705 million annually will take effect on January 1, 2027, which is also reduced by approximately 24% from what was initially proposed.
The settlement includes several measures aimed at customer protection and system reliability. It provides $15 million in payment assistance for eligible customers and introduces safeguards against disconnections during periods of extreme heat or cold. The agreement also enhances storm reserves to help protect customers from sudden rate increases after severe weather events.
New infrastructure investments are part of the plan as well. Solar and battery generation projects are scheduled for development in 2027, 2028, and 2029 but must meet cost-effectiveness criteria before base rate adjustments are considered by the Commission. A new large-load tariff has been created to address energy demands from emerging technologies while shielding existing customers from extra costs. Additionally, a pilot program will study long-duration battery storage beyond lithium-ion technology.
The return on equity for FPL is set at 10.95%, down from the originally requested 11.9%. This adjustment is expected to save approximately $1.95 billion over four years.
Typical residential bills in Peninsular Florida are projected to be $136.64 per month for usage of 1,000 kWh starting in January 2026—an increase of $2.50 compared to current levels. In Northwest Florida, typical bills will decrease by $2.24 to reach $141.36 per month for the same usage level.
The decision follows extensive public engagement: more than ten customer service hearings were held across FPL’s service area with over four hundred speakers; more than forty-three thousand written comments were submitted; and over seventy hours of testimony took place during evidentiary hearings.
“These proceedings included input from consumer advocates, environmental groups, large industrial users, retail businesses, electric vehicle charging providers, and federal agencies,” according to the Commission statement.
FPL serves about six million customer accounts across forty-three counties in Florida.
