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Floridians are bracing for their electric bills to go up starting in 2026 after state regulators have approved a controversial rate hike proposed by Florida Power & Light (FPL). Customers of FPL, the largest utility in the state, will see their bills increase by an initial 2% or $2.50 a month per household. WSVN reported that these hikes will incrementally rise, hitting nearly an $8 monthly increase by 2029.
The hikes are part of a settlement that aims to fund infrastructure improvements throughout FPL's grid, with the utility asserting that this is necessary to strengthen the state’s power grid and meet the needs of its fast-growing population. However, despite approvals from the Public Service Commission which has called the agreement a "balanced resolution," and with Commissioner Gary Clark saying that "The bill impacts are very reasonable for all customer classes (different types of customers)." There's considerable opposition, some of whom intend to challenge the hikes in court claiming this is the most substantial rate hike in U.S. history, according to CBS News Miami.
Under the settlement detailed by CBS News Miami, base-rate increases are projected to be $945 million in 2026 followed by $705 million in 2027. Additional collections in 2028 and 2029 are allocated for solar-energy and battery-storage projects. In terms of monthly billing, residential customers consuming 1,000 kilowatt hours a month in the traditional FPL territory will experience a rise from the current $134.14 to $136.64 in 2026, while Northwest Florida customers will initially see a decrease before subsequent increases.
Opposing entities like the state Office of Public Counsel and multiple consumer groups argue that FPL's settlement could catapult customer bills by about $6.9 billion over four years, and a point of significant contention is FPL's sought-after "return on equity," set at 10.95% in the settlement. Commissioner Gabriela Passidomo Smith admitted to not being enthused over this figure but conceded, saying "In and of itself, I don't love this ROE," yet she stood "comfortable" justifying that it meets legal standards, amidst these concerns, it is expected that attorneys representing consumer groups will be taking up the fight to the Florida Supreme Court with Bradley Marshall representing Florida Rising, the League of United Latin American Citizens of Florida, and the Environmental Confederation of Southwest Florida expressing a certainty that "I certainly think that this case will wind up in front of the Florida Supreme Court," as reported by CBS News Miami.
