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 effective from January 1, 2026, through December 31, 2029.
Under the terms of the settlement, FPL will implement an increase in 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. Another increase set for January 1, 2027, will generate $705 million annually, which is a reduction of approximately 24% from what was initially proposed.
The settlement includes expanded customer protections and financial assistance programs as well as continued investment in strengthening Florida’s electric grid. According to the FPSC release: “The approved settlement includes robust customer protections, expanded financial assistance programs, and continued investment in the reliability and resilience of Florida’s electric grid.”
FPL first filed its rate request in February. The commission conducted a thorough review process that included ten customer service hearings across FPL’s service area with over 400 speakers providing comments. More than 43,000 written comments were submitted by customers. The docket saw over 1,146 official filings; more than fifty witnesses gave testimony along with over thirty depositions; evidentiary hearings lasted more than seventy hours; and over six hundred exhibits were entered into the record.
Commissioners considered input from all intervening parties such as consumer advocates, environmental groups, large industrial users, retail businesses, electric vehicle charging providers and federal agencies including the Office of Public Counsel, Florida Rising and Florida Industrial Power Users Group.
Key elements of the four-year plan include significant reductions to FPL’s initial requests—approximately $600 million less for the revenue requested in 2026 (a reduction of about 39%) and about $222 million less for that requested in 2027 (about a 24% reduction). The plan also provides $15 million in payment assistance for eligible customers. It introduces new disconnection safeguards prohibiting shutoffs for nonpayment during periods of extreme heat or cold—specifically when temperatures reach above 95°F or below 32°F.
Storm reserves have been enhanced to help protect customers from future rate spikes after severe weather events. The agreement also outlines new solar and battery generation additions planned for years between 2027-2029 subject to cost-effectiveness criteria that will be reviewed by the commission before any base rate adjustments are made.
A new large-load tariff—the first such measure in Florida—will address growing energy needs due to emerging technologies while aiming to shield existing customers from added costs. Additionally, there will be a Long-Duration Battery Storage Pilot launched to study next-generation storage technologies beyond lithium-ion batteries.
Return on Equity has been set at 10.95%, down from FPL’s original request of 11.9%. This adjustment is expected to result in an estimated $1.95 billion reduction over four years.
For residential customers beginning January 2026—with reduced revenue requirements and expiration of storm recovery surcharges—a typical bill using one thousand kilowatt-hours per month will be $136.64 in Peninsular Florida (an increase of $2.50), while Northwest Florida residents will see bills at $141.36 (a decrease of $2.24).
These estimates include all aspects of electric service such as fuel costs and taxes.
FPL serves around six million customer accounts across forty-three counties in Florida—representing roughly twelve million people.
