The Florida Public Service Commission (FPSC) has approved a settlement agreement with Florida Power & Light Company (FPL) and participating intervenors that will set new electric rates for FPL customers from January 1, 2026, through December 31, 2029.
The agreement allows FPL to increase its annual revenues by $945 million starting in January 2026. This figure is about 39% less than the company’s original request. An additional increase of $705 million per year will begin in January 2027, which is a reduction of about 24% compared to what was initially proposed.
The settlement includes several provisions aimed at customer protection and continued investment in the state’s power grid. These include expanded financial assistance programs, new disconnection safeguards that prohibit shutoffs during extreme heat or cold, enhanced storm reserves to prevent rate spikes after severe weather events, and plans for new solar and battery generation projects subject to cost-effectiveness review. The deal also establishes a large-load tariff designed to address the needs of emerging technologies without increasing costs for existing customers. A pilot program for long-duration battery storage will be launched as well.
Return on equity has been set at 10.95%, down from the requested 11.9%. According to the FPSC, this reduction translates into an estimated $1.95 billion savings over four years.
To reach this decision, the commission reviewed extensive public input: “10 customer service hearings across FPL’s service territory, with more than 400 speakers providing comments,” as stated in the release. It also noted: “More than 43,000 written customer comments submitted.” In addition, there were over a thousand official filings and more than seventy hours of evidentiary hearing testimony.
The FPSC considered feedback from consumer advocates, environmental groups, industrial users, retail businesses, electric vehicle charging providers, federal agencies such as the Office of Public Counsel and Florida Rising.
For residential customers using 1,000 kWh per month starting in January 2026:
– Peninsular Florida residents can expect bills of $136.64—a $2.50 increase.
– Northwest Florida residents will see bills of $141.36—a decrease of $2.24.
These estimates include all components of electric service charges.
FPL currently serves around six million customer accounts across forty-three counties in Florida.
