Pointing to issues such as growth and a need to continue expanding its system, Florida Power & Light on Monday said it will propose a four-year plan to raise base electric rates.
FPL will seek increases of about $1.55 billion that would take effect in 2026 and $930 million that would take effect in 2027, according to a letter filed with the Florida Public Service Commission. It also will seek additional money in 2028 and 2029 to pay for solar-energy and battery projects, though the filing did not detail specific amounts.
In the letter, FPL said, for example, that it has “experienced significant growth in our customer base” during the past four years and expects such growth to continue.
“While this growth will ultimately have a positive impact by spreading existing fixed costs over a larger customer base, it also means that FPL must invest significant capital to meet the needs of these additional customers by building transmission and distribution infrastructure, including poles, wires, transformers, substations and other components,” the letter, addressed to Public Service Commission Chairman Mike La Rosa, said. “The costs of meeting these obligations have substantially increased due to the impact of inflation.”
The letter is the first formal step in a months-long process at the Public Service Commission. FPL said it will file a detailed proposal on Feb. 28; its current base-rate plan, which took effect in 2022, will expire at the end of 2025.
Base rates make up a major part of customers’ monthly bills, and the regulatory commission will consider voluminous amounts of information and hold hearings while considering the FPL proposal. The state Office of Public Counsel, which represents consumers, and groups that represent businesses and consumers also are expected to take part in the case.
The commission on Dec. 19 gave final approval to a plan that will lead to a $184.9 million base-rate increase in 2025 for Tampa Electric Co., followed by increases of $86.6 million in 2026 and $9.1 million in 2027. In August, the commission approved a settlement that will increase Duke Energy Florida’s base rates by $203 million in 2025 and $59 million in 2026.
FPL is by far the largest utility in the state, with Monday’s letter saying it has about 6 million customer accounts. When factoring in other expenses such as power-plant fuel, FPL said the proposal would lead to customer bills increasing at an average annual rate of about 2.5 percent from January 2025 through 2029.
In a prepared statement Monday, FPL President and CEO Armando Pimentel said the utility has a “proven track record of delivering value for our customers.”
“While we know there is never a good time to request a rate increase, we need to continue to make smart investments in the grid and in new generation resources so we can continue to deliver reliable electricity, enhance resiliency and diversify our generation mix to power our fast-growing state,” Pimentel said. “That is our never-ending commitment to our customers and that’s what this balanced plan does.”
The rate case will include myriad issues, but one of the most closely watched will be FPL’s requested return on equity — a key measure of profitability. The commission typically approves a range of allowable return on equity and a “midpoint” in the range.
FPL said in the letter it will seek a midpoint of 11.9 percent. As a comparison, the commission this month approved a 10.5 percent midpoint for Tampa Electric.
FPL also made clear in the letter that it wants to continue expanding the use of solar energy. Florida utilities have increasingly turned to solar in recent years.
“Utility-scale solar and battery projects are currently the lowest-cost form of new power generation, providing not only clean and reliable energy to customers, but also mitigation of fuel price volatility and savings in the form of reduced fuel costs,” the letter said. “Deploying solar projects with cost-effective battery storage provides additional customer benefits by extending the hours when FPL can deliver low-cost energy to customers, even when the sun is not shining.”
Ed Danko, former Vice-Mayor PC says
Get ready Palm Coast, make no mistake, because your city council, under the leadership of tax & spend Theresa Pontieri, will once again try to stick you with a FPL Franchise Fee/Tax. Despite the fact that this has failed three times in the past, I have no doubt that she will try to push this through again, and she will try to revoke that legally this now needs to go on a ballot if it’s ever attempted again. I will be speaking out and standing between your money and her when this happens, but I will need your help to stop her again. They don’t call her “Tax & Spend Theresa” for nothing!
Jim says
Other than you and your little minions, who calls Theresa Pontieri “Tax & Spend Theresa”?
And, just so you understand how things work, you’re just another citizen of Palm Coast who has little to no influence on much of anything and, particularly, the City Council. Frankly, if you’d just stay out of the discussion, it’s most likely that there will be no attempt at a franchise fee. Unfortunately, if the word gets out that you’re against it, a lot of people might just be for it because they have such little trust in anything you say or do. It’s great that you are no longer an “elected official” but I have to say reading your sad little comments is just boring. Don’t you and your little group understand that Palm Coast is done with you?
FlaglerLive says
Based on the record, it is grossly inaccurate to call Pontieri “tax and spend.” Please don’t make wild and unsupported claims to invent an ideological narrative. Previous titles are no license to misinform.
Ed Danko, form Vice-Mayor, PC says
I disagree with you my friend, after all she did vigorously support the FPL Franchise Fee, until she was boxed in by the large public outcry, and quite frankly out maneuvered by me. Let’s not forget that she supported the failed attempt by the county commissioners, not once, but twice, 2 years in a row, to impose a half percent sales tax increase on consumers. She floated a “special assessment fee” on canal residence for dredging, but fortunately that boat sank rather quickly. And, despite the economic misery felt by many of our residence, especially seniors, because of failed Bidenomics, she still voted in 2024 for a tax increase instead of the full rollback that I supported.
Jim says
Eddie, in supporting the “full rollback” you supported, never once during that time did you ever offer up a single item in the budget or staff that could be cut out to support that “full rollback”. You were just trying to play it both ways. Running around claiming to support tax cuts yet not willing or able to state a single item you’d recommend cutting to reduce costs in line with the reduced funding a rollback entails. That’s because “leaders” like you don’t have a clue about what leadership is or how to lead. I’ve been a manager all my life and one thing I’ve got plenty of experience in is finding places to cut costs when there is no money available. It’s not fun and certainly not easy but it’s a requirement for those who actually are in charge.
You can run around acting like you’re a “cut taxes guy” all you want but anyone with an ounce of sense and experience with actual management knows you just run your mouth. And the reason you do it is so that, if or when someone else cuts a service or personnel or other budget item and then there is an outcry from the public over the issue, you can weasel out by claiming YOU didn’t make the cut – THEY did. So run your mouth. You can’t walk the walk!!!
And I don’t think you realize yet that this city and county is done with you. Please move back to Georgia or wherever you came from – if they’ll take you.
Denali says
So tell us Eddy, how does a residence feel economic misery?
Bidenomics did not fail, look at the economy today compared to where it was after Trump. He left the country in shambles; both economically and morally. Your Orange Jesus was responsible for the terrible inflation we went through. Biden’s policies pulled us through that mess and led to the US building the strongest economy in the world.
As for your tax ‘roll-back’, what a joke. All that you and your ilk were trying to do was kick the can down the road so you would look good today. You never had a plan to solve the problem. Palm Coast taxes and fees are not currently funded properly to provide the services and facilities that the majority of residents demand. They do need to be evaluated and most likely raised. (Please note that there is a difference between a resident and a residence; one is assessed a property tax while the other pays the property tax.)
And please, drop the “Form Vice-Mayor” tag line. Not only is it written incorrectly, it reminds too many of us how we were hoodwinked by you. Additionally it means nothing more than saying that you are a former second grader. Everyone here knows you for what you really are.
Oh, before I forget, please learn how to use punctuation. It can be your friend. Mono-sentences with ten commas are so 13th century.
jim says
This can’t be right. Donald J. Trump has promised to cut our energy costs by 50% in the next year! How can that happen if FPL is going to be raising our rates? Somehow, I think somebody somewhere is lying to us about our future energy costs are going to be better!!! I’m just devastated that an elected official would lie just to get elected… Wait a minute, I just slapped myself back into reality. This is just another day in the NEW AMERICA!!!!
Dennis C Rathsam says
1st our taxes went up, then the city screwed us on the garbage contract, now FPL wants to take another bite out of our ass…. If this keeps up there will be no ass left!
Jim says
Relax, Dennis, you’ll still be here…..
Steve says
Nothing will go down Mr. Rathsman. Prices will rise for the remainder of your life. I wish too but to no avail IMO
Atwp says
More requests for rate increases. Is this greed or a needed rate increase? I’m pretty sure some of it is greed. Life in the Republican State of Florida. Less service higher bills. Am pretty sure some other utility companies will ask for permission to increase rates.
Double taxed says
We need to bring in another electric company. With no competition they can do what they want. It’s a legal monopoly. People need to quit whining and start fighting back. We also need to do away with property taxes. The impact fees of all the new homes and businesses will cover a lot of it.
Denali says
So how would a competing electric utility work? Two sets of everything including poles and cabling down every street? Two power generating stations? Just imagine the hundreds of billions of dollars to build and maintain a totally new electrical power grid. No, there is a reason utilities are allowed to be monopolistic. It is to the benefit of the community to have just one power company. And no, they cannot do whatever they want, they have to get approvals through the state utility regulatory body.
Property taxes and impact fees are not related in the least. Impact fees cover the expenses for things like increasing municipal fire, police, water, sewer, school services in a specific newly developed area. Property taxes are for maintaining the infrastructure once built; city services, police, fire, roadway and whatnot for the common good of the community.
TR says
LOL give me a break. You think that if we had a Democratic State of Florida, rates for services wouldn’t go up? We had a Democratic administration the last 4 years in this country and look at the rates of everything that went up. Take a look at California as a Democratic state and tell me they are better off then we are in Florida? I have an idea, you could always pack and move to California and have your Democratic state. You can live with the a lot of the Democrats with the same attitude.
oldtimer says
will this increase guarantee that my lights will stop flickering every time the wind gusts over 30mph?
DaleL says
According to the story: “When factoring in other expenses such as power-plant fuel, FPL said the proposal would lead to customer bills increasing at an average annual rate of about 2.5 percent from January 2025 through 2029.”
Inflation was 4.1 percent in 2023 and about 3 percent in 2024. A 2.5 percent rate increase per year, which is less than the recent inflation rate, seems quite reasonable.
Crystal Lang says
I want to believe the old saying that WHAT GOES UP MUST COME DOWN. Absolutely NO increase is quite reasonable.