Tallahassee, FL — Florida’s largest electric utility is facing widespread criticism over a proposed $10 billion rate hike that would unfold over four years, in what experts say could become the largest utility rate increase in U.S. history.
FPL’s Four-Year Rate Plan Under Scrutiny
Florida Power & Light (FPL), a subsidiary of NextEra Energy, filed a petition with the Florida Public Service Commission in February proposing rate increases beginning in 2026. The plan includes additional hikes in 2027, 2028, and 2029 to fund new solar and battery storage facilities.
“Our four-year rate proposal would enable FPL to continue to deliver some of America’s most reliable electricity while keeping customer bills well below the national average,” an FPL spokesperson told CBS News.
The Florida Public Service Commission has already held multiple in-person and virtual hearings to collect feedback from ratepayers. A formal two-week hearing is scheduled to begin on August 11, where FPL will present its case.
Previous Hikes and Rising Customer Burdens
The proposal follows a $1.2 billion rate hike approved in 2023 for storm restoration costs, which environmental advocates say already increased monthly bills for thousands of Floridians. The last base rate hike was approved in 2021, totaling nearly $5 billion for the 2022–2025 period.
According to FPL, the proposed rate adjustment would:
- Increase the average customer bill by 2.5% annually
- Still remain 25% below the projected national average
- Add approximately $10–$20 per month to bills by 2029
However, critics argue those projections are misleading and downplay the true financial impact.
Environmental and Consumer Advocates Push Back
At a virtual press event, Brooke Ward, senior organizer for Food & Water Watch, called the proposal profit-driven, not infrastructure-related.
“This isn’t about reliability or infrastructure,” said Ward. “It’s about boosting profits.”
The organization estimates that if passed, the plan would cost residential customers over $360 more by the end of 2027.
“These rate increases fall heaviest on the region’s most vulnerable households, especially the elderly and disabled,” said Mark Wolfe, Executive Director of the National Energy Assistance Directors Association, in an email to CBS MoneyWatch.
Economist Daniel Lawton, testifying on behalf of the Florida Office of Public Counsel, said the proposal is “a substantial overreach,” claiming:
“For every dollar paid by consumers in base rates, about 50 cents would go to shareholders and related federal income taxes.”
He warned the structure would result in “excessive rates and harm all Florida customers.”
FPL Pushes Back on Criticism
In rebuttal testimony, Ina Laney, FPL’s Senior Director of Financial Forecasting, rejected Lawton’s findings as “fundamentally flawed and misleading.”
“FPL consistently achieves industry-leading performance in service reliability and cost management,” she said, defending the utility’s strategy.
A Broader Climate of Energy Concerns
The rate hike debate arrives amid increasing scrutiny of energy policy and utility practices in Florida. Just last week, energy security concerns were raised during a separate incident involving an active shooter at a military base, as reported by CBS News, underscoring tensions over infrastructure and public safety.
As utility bills rise and environmental issues mount, more Floridians are paying attention to how energy companies, regulators, and advocacy groups shape the future of the state’s electric grid.
What do you think about FPL’s proposed rate hike? Should it be approved? Share your opinion in the comments.
