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.
Ed Danko, former Vice-Mayor, PC says
Hard to take anything you say seriously when you refuse to use your full name. Stop hiding and stand up and identify yourself before running your mouth and attacking people. In other words, be a man.
DaleL says
The “name” associated with a comment on a FlaglerLive story is actually a “handle” created by the commentator. As entertaining as “Ed Danko…..” and “Jim” (‘s) comments are, the story in this case concerns FPL’s proposed future rate increase. I find both amusing and telling the comment: “, be a man.”
Instead, let us (males) strive to be gentlemen. Chest pounding, insults and false bravado settle nothing.
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.
Ed P says
Seventeen (17) states plus DC have adopted electric retail choice programs buying electricity from competitors. They do save consumers money.
The transmission and distribution rates are the home company rates but actual electricity rates are from their competitors. Electricity is a commodity.
In the small state of Connecticut (3.5 million people) $23.706,000 dollars were saved in 2023 by not choosing their default electric company. Connecticut Light and Power always has the option of matching the electricity rates of their competitors. It makes it a bit more transparent. So the cost of lines/ generation is the lions share of cost but savings on rates is possible.
Denali says
Yep, just went to the Connecticut Public Utilities Regulatory Authority and learned that I might save between $1.00 and $5.00 on my monthly service charge. Might, I say because any savings vary greatly depending on what territory you are in. The savings I quote are the best offered in the state.
The biggest problem I see here is that you have now introduced a third player into the mix; an electricity supplier who is nothing more than a broker. He has no generating capacity and buys up ‘excess’ power from the grid and sells it to the consumer. He has no skin in the game. Eversource still has the distribution system for which you must pay to enhance and maintain. From what I read it has been a royal headache for thousands of consumers to deal with these brokers, not to mention the slower repair service from Eversource if you are not a service customer. All that to possibly save $60 a year? Nah.
Ed P says
Denali,
Palm Coasters were ready to cry over garbage collection fees going up a few pennies per week.
Your math does not include commercial businesses that save much more than consumers.
Your estimates are low because the savings are based on kilowatt usage. Large users save more.
So if you could get 12 months electricity for 11 month’s cost, you would say naw? Smart.
Ed P says
Ps. That pesky 3rd party you referenced is call competition.
Denali says
Neither the state website nor the sites of the several brokers mentioned any discounts for large volume users so I must assume there are none. In that case the savings percentage remains the same. (I do not believe this to be true but lacking any documentation must make the assumption.)
A typical consumer using 1,000 kW per month would pay $110 per month just for their service. If they deferred all of their $5 per month savings until the 12th month they would still have a $5o bill. No free 12th month.
And let us not forget that there is still a charge from Eversource for the privilege of using their lines, equipment and manpower to get that electricity to your home.
In reviewing several of the electric service brokers they appear to be very much akin to the phone, cable and streaming service providers. Only these folks have all sorts of conditions with penalties for early termination. Provide a low introductory rate for some period of time and then raise rates. Granted this is all perfectly legal but it is morally corrupt. There does not appear to be any way to play the system ala Sirius XM.
As has been said in countless situations; “The juice is not worth the squeeze”.
Regardless, this discussion is moot as FPL, Duke and whoever else are so intertwined with the legislature in Florida that a system like this would never be approved.
Ed P says
Denali,
I spent 35 years living and running multiple businesses in Connecticut.
I assure you savings are greater than you estimate. And, all users can participate. Even commercial customers who already were afforded lower discounted rates due to high volume….minuscule discount.
During some , 6 month to 1 year contract periods I was able to save at times as much as 1 penny per kilowatt, approximately 10% by “working” the system and paying attention to rates that adjusted seasonally.
I am a bit surprised that you poo poo a $23 million dollar savings for users.
Ps you also over looked that consumers could choose “green” energy choices and actually pay a bit more to save the environment. They could put their money where their mouths are.
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.
Tony Mack says
From the Institute on Tax Policy and Economic Policy:
Key Findings
For families of modest means, California is not a high-tax state. California taxes are close to the national average for families in the bottom 80 percent of the income scale. For the bottom 40 percent of families, California taxes are lower than states like Florida and Texas.
The highest earners usually pay higher taxes in California than elsewhere. But rich Californians’ tax rates are not much different from the tax rates that low-income families in many states have long been accustomed to paying. Sixteen states tax their poorest residents at rates higher than what California applies to its richest. Florida, Tennessee, and Texas are among those 16 states.
California’s tax system is relatively flat overall, whereas most states have highly regressive taxes that ask less of the rich than of anyone else. California’s choice to have a less regressive system largely explains why California collects more tax revenue per capita than other states without especially high tax rates for low- and middle-income families.
oldtimer says
will this increase guarantee that my lights will stop flickering every time the wind gusts over 30mph?
Denali says
I am sure you have called FPL’s customer assistance folks to investigate the problem. I am equally sure that you are aware that flickering lights should not be ignored. The most common causes are loose connections or open neutrals; grounding conductors, not grounded conductors. Both of which are know to be fire hazards.
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.
Endless dark money says
Haha got conned again by the republiCONs. MAGA doesn’t understand economics that’s woke let’s start a trade war!! Enjoy trumpflation caused by some of worlds richest people. Ahhh greed. The only thing merica is number 1 in. Greed. usa is a dumpster fire. Hopefully England or China will take the global lead from here cause our convict leader is an embarrassment to humans and only garbage and hate comes out of that orange mouth. But people collectively voted to tear this thing down and destroy it from the inside. Let’s watch it burn!!
Stop The Insanity says
Someone has to pay for those data centers that will be popping up all over.
Pogo says
@FWIW
As stated
https://www.google.com/search?q=fpl+private+club+tallahassee
Back to the future
https://www.google.com/search?q=enron
“When I was younger, I could remember anything, whether it had happened or not; but my faculties are decaying now and soon I shall be so I cannot remember any but the things that never happened. It is sad to go to pieces like this but we all have to do it.”
― Mark Twain