FPL rate settlement reduces request by nearly a third, limits average annual bill increases to 2%, maintains consumer protections

Core Viewpoint - Florida Power & Light Company (FPL) has filed a four-year rate settlement agreement that significantly reduces its original revenue request while ensuring residential customer bills remain below the projected national average through the end of the decade [1][2]. Revenue Request Reduction - The settlement agreement cuts FPL's four-year revenue request by approximately 30%, reducing hundreds of millions of dollars from its initial proposal [2][3]. - Base rate revenue requests are reduced by 39% for 2026 (from $1.545 billion to $945 million) and by 17% for 2027 (from $927 million to $766 million), totaling about $2.9 billion less than originally requested over the four-year period [8]. Consumer Impact - The typical 1,000-kWh residential customer bill is expected to increase by about $3.79 a month next year, which is significantly lower than FPL's original proposal [3][4]. - Even with this increase, FPL projects that its bills will remain about 20% lower than they were 20 years ago when adjusted for inflation [3]. Estimated Bills - Estimated bills for a 1,000-kWh residential customer in Peninsular Florida will be $137.93 in January 2026, $143.05 in January 2027, $146.24 in January 2028, and $148.15 by December 2029 [4]. Consumer Protections - The settlement maintains essential regulatory oversight, ensuring that all fuel and variable costs are subject to annual review by the Florida Public Service Commission (PSC) [5]. - FPL commits to not disconnect customers for nonpayment during extreme weather conditions [5]. Growth and Investment - FPL anticipates adding about 335,000 new customers by the end of the decade, which necessitates investments in solar energy, battery storage, and smart-grid technologies [6]. - Existing solar investments have already saved customers more than $1 billion in avoided fuel costs [6]. Affordability Context - The proposal results in an average annual residential bill increase of approximately 2% from 2025 through the end of the decade [7]. - FPL's typical residential customer bills are $24 lower than those of an average utility due to the company's low operating and maintenance costs [7]. Settlement Participants - The agreement includes participation from various stakeholders, such as the Florida Retail Federation, Walmart, and the Southern Alliance for Clean Energy [9]. Next Steps - The PSC will review the settlement agreement and set a schedule for voting on new rates, which, if approved, would take effect on January 1, 2026 [10].