FPL’s new rate settlement, worth approximately $6.9 billion, will affect residential customers across Florida, leading to an increase in monthly bills starting in 2026. While the utility company argues that the hike is essential for infrastructure improvements, opponents see it as a detrimental move for the state’s most vulnerable populations. The legal battle is just beginning, with many consumer groups pledging to take the fight to the Florida Supreme Court.
The Rate Increase: What’s At Stake for Consumers
According to a report by CBS News, the PSC has approved a four-year settlement plan that will see Florida Power & Light increase its base rates by $945 million in 2026 and $705 million in 2027. Additionally, the utility company plans to collect additional funds in 2028 and 2029 to finance solar-energy and battery-storage projects. For the average residential customer using 1,000 kilowatt-hours per month, this translates to a $2.50 increase in monthly bills, a rise of about 2%.
While the increases may seem modest in isolation, critics argue that the cumulative impact of the rate hike, combined with the ongoing economic strain from inflation, will be devastating for many Floridians. The increase will add billions to customer bills over the next several years, contributing to what some describe as the “largest rate hike in U.S. history.” Consumer groups, including the Office of Public Counsel, have vehemently opposed the increase, arguing that it disproportionately impacts households already grappling with high utility costs.
FPL maintains that the rate hike is necessary to sustain Florida’s growing energy needs, especially in light of population increases and the need for modern infrastructure. In a statement, FPL President and CEO Armando Pimentel explained that the settlement would allow the utility to continue delivering reliable service and ensure affordable electricity for the future. However, with the state’s rapid population growth and rising living costs, many residents fear that these hikes could further strain their budgets.
The Political and Legal Repercussions of the Settlement
The rate hike decision has not only sparked consumer outrage but also attracted political attention. Several local and state officials, including Florida’s former state senator José Javier Rodriguez, have criticized the decision, calling on the state’s Attorney General to intervene. While the Attorney General’s office has declined to get involved, many expect the case to be appealed to the Florida Supreme Court.
In Florida Phoenix, attorney Bradley Marshall, who represents several opposition groups, stated that this case is likely to be contested all the way to the state’s highest court. Marshall argued that the rate increase harms the most vulnerable Floridians and places an unfair financial burden on families already struggling with high energy costs. The legal battle is expected to focus on the fairness of the proposed rate increase, with opponents questioning whether FPL’s return-on-equity target of 10.95% is too high for a utility that already boasts substantial profits.
As the legal challenges loom, Floridians and policymakers alike will be closely watching the unfolding debate over the future of utility rate hikes in the state. With rising costs of living already affecting many households, the outcome of this dispute will likely have lasting implications for the affordability of electricity in Florida.
