Proposed Rate Increase by Florida Power & Light Company Could Impact Customers Starting 2025

Proposed Rate Increase by Florida Power & Light Company

FLORIDA — The Florida Power & Light Company (FPL) has announced a plan to seek new rates from the Florida Public Service Commission (PSC) that will take effect from 2026 through 2029. This notification was made on Monday, December 30. Under the proposed plan, customers could face an average annual rate increase of 2.5% starting in January 2025 until 2029.

Who is involved?

The primary parties involved are the Florida Power & Light Company and the Florida Public Service Commission. FPL is the utility provider serving millions of customers across Florida, while the PSC regulates the rates and services of utility companies in the state.

What are the proposals?

FPL’s proposal includes a new four-year rate structure which will become effective once the current base rate agreement ends in December 2025. This rate adjustment allows FPL to enhance its services and infrastructure to meet growing demands, as they anticipate an increase of 330,000 customers by 2029.

Where will the changes impact?

The changes will impact customers in Florida. FPL has stated that the new rates are necessary to maintain and improve generation capacity and distribution infrastructure. This is essential as the company anticipates a significant rise in demand for electricity in the coming years.

When will the proposal be submitted?

The formal proposal for the new rates is expected to be filed with the PSC as early as February 2024. The process for setting new base rates generally takes about a year, meaning customers can expect to see the potential impacts of these adjustments well ahead of the proposed implementation date.

Why is this happening?

The need for an increase arises mainly due to operational costs associated with expanding their services to accommodate a growing customer base. FPL indicated that without these adjustments, they may struggle to meet the additional electricity demands of the new customers. The company emphasized that this move is meant to ensure reliability and efficiency in electricity delivery.

Customer Implications

FPL has assured customers that they can calculate how the proposed rate increases may affect their monthly bills once the formal plan is officially filed. Customers currently on the FPL network should prepare for adjustments in their bills stemming from the new pricing structure if the PSC grants approval.

Conclusion

As FPL prepares for its future, the planned rate increases reflect the utility’s commitment to address the rising demand for electricity while ensuring that customers remain connected and supported. While specifics on the exact timing and scope of the impacts will rely upon PSC’s review and approval, FPL continues to stress the importance of these changes for a prosperous energy future in Florida.