The Florida Public Service Commission (FPSC) has approved a settlement agreement with Florida Power & Light Company (FPL) and participating intervenors, establishing a four-year rate plan from January 1, 2026, through December 31, 2029.
The settlement allows FPL to raise rates and charges to generate $945 million in additional annual revenues starting January 1, 2026. This amount is about 39% less than the company’s original request. A further increase will take effect on January 1, 2027, generating $705 million annually—a reduction of about 24% from the initial proposal.
According to the FPSC, “The approved settlement includes robust customer protections, expanded financial assistance programs, and continued investment in the reliability and resilience of Florida’s electric grid.”
The review process included ten customer service hearings across FPL’s service area with more than 400 speakers offering comments. Over 43,000 written customer comments were submitted. The docket saw more than 1,146 official filings. More than 50 witnesses gave testimony and over 30 depositions were taken. The commission also conducted over 70 hours of evidentiary hearing testimony and cross-examination and entered more than 600 exhibits into the record.
Commissioners considered input from various groups such as consumer advocates, environmental organizations, large industrial users, retail businesses, electric vehicle charging providers, and federal agencies including the Office of Public Counsel, Florida Rising, and the Florida Industrial Power Users Group.
Key elements of the settlement include significant reductions to FPL’s original revenue requests—about $600 million less for 2026 and $222 million less for 2027. There are also expanded customer protections such as $15 million in payment assistance for eligible customers and new rules that prohibit disconnections for nonpayment during extreme temperatures (above 95°F or below 32°F).
Additional measures include enhanced storm reserves to protect customers from future rate spikes after severe weather events; new solar and battery generation projects in upcoming years subject to cost-effectiveness criteria; creation of a new large-load tariff aimed at supporting growing energy needs while shielding existing customers from added costs; and a pilot program for long-duration battery storage technologies beyond lithium-ion batteries.
The return on equity was set at 10.95%, down from the originally requested 11.9%. This reduction is expected to result in an estimated $1.95 billion savings over four years.
With these changes and the expiration of a storm recovery surcharge, typical residential bills starting January 2026 are projected as follows: In Peninsular Florida, a bill for using 1,000 kWh will be $136.64—a $2.50 increase from current levels; in Northwest Florida it will be $141.36—a decrease of $2.24 from current levels. These estimates account for all components of electric service including fuel costs and taxes.
FPL currently serves around six million customer accounts across forty-three counties in Florida.
