Florida Approves Electric Bill Rate Hike: What We Know

By Robert Birsel

Reporter

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Florida Power & Light (FPL), the largest electric utility in the United States, said it has approval from the regulator to increase customers' base rates over the next four years, which critics say could cost consumers billions of dollars amid the country's affordability crisis.

Why It Matters

FPL serves about 12 million people, making it an influential force in the industry and potentially setting a precedent for other companies.

The increase comes after several years of high inflation, with the cost of living, notably groceries, remaining high for Americans and becoming a lightning rod for the administration of President Donald Trump, who campaigned last year on decreasing prices.

The average cost of electricity per kilowatt-hour in the U.S. rose to 18.8 cents in September, compared with 17.8 cents in September 2024 and 13.7 cents in September 2020, according to data from the Federal Reserve Bank of St. Louis.

What To Know

The settlement is expected to lead to base-rate increases of $945 million in 2026 and $705 million in 2027. FPL also would collect additional amounts in 2028 and 2029 for solar-energy and battery-storage projects, CBS reported.

According to FPL, starting January 1, 2026, the average residential electric bill for a customer using 1,000 kilowatt-hours will increase by $2.50 per month, a rise of about 2 percent, increasing bills from $134.14 to $136.64 in most areas of Florida.

The agreement, developed in collaboration with a broad coalition of customer groups, sets rates for 2026 through 2029, the utility said.

FPL President and Chief Executive Armando Pimentel said the approval from the state Public Service Commission “is a win for our customers and a win for the entire state."

In seeking the increase, the utility had argued that higher rates were necessary to invest in "electric service infrastructure," citing “far higher” than expected costs of components and labor.

FPL said the typical 1,000-kWh residential customer bill in 2026 will be about 20 percent lower than it was 20 years earlier when adjusted for inflation and its bills have been well below the national average for more than a decade, adding they are projected to remain so through 2029.

It also said that, with 335,000 new customers expected, the agreement would enable it to build the new power generation and battery storage required to ensure reliable, low-cost power. The deal would also improve service with “smart grid technology” and other measures to help automatically restore and prevent outages, the utility said.

But the settlement drew opposition from several consumer and environmental groups. Earth Action, Inc., said on Facebook that the price increase will mark “the largest rate hike in U.S. history.”

“While greedy utilities keep raking in record profits, regular Floridians want to be able to afford running their air conditioners and heaters,” Brooke Ward, senior Florida organizer at Food & Water Watch, said in a post.

Yoca Arditi-Rocha, chief executive of The CLEO Institute nonprofit, said: “Rate hikes like this deepen the affordability crisis facing Florida families.”

Attorney Bradley Marshall, who represents consumer groups Florida Rising, the League of United Latin American Citizens of Florida and the Environmental Confederation of Southwest Florida, said he expected a legal challenge to the increase.

"I certainly think that this case will wind up in front of the Florida Supreme Court," CBS reported.

What People Are Saying

Pimental, in a statement: “Today's vote enables FPL to continue to deliver some of America's most reliable electric service and meet the needs of our fast-growing state—and we project will keep customer bills well below the national average through the end of the decade.”

Mary Gutierrez, scientist and director for Earth Ethics, in a statement: “Approving yet another rate hike for Florida Power & Light places an unacceptable burden on families already struggling with high utility bills. Floridians deserve protection—not rubber-stamped increases that put corporate profits ahead of people.”