Florida PSC approves new rate plan for Florida Power & Light
Florida Power & Light Company (FPL) received approval Tuesday from the Florida Public Service Commission (PSC) for its four-year rate settlement.
Under the new rate plan, the standard 1,000-kWh typical monthly residential bill benchmark would be $101.70 in 2021, $113.85 in 2022, $115.52 in 2023, $116.05 in 2024, and $117.02 in 2025. This represents annual growth of about 2.8 percent, but the rates will remain below the national average through the end of 2025. Typical FPL business customer bills are also expected to grow between 1.6 percent and 3.4 percent over this same period, but the rates will remain below the national average through 2025. The new rates will be phased in starting in 2022.
Further, the new structure will unify the rates and tariffs of FPL and Gulf Power, which FPL’s parent company, NextEra Energy, acquired in 2019. The rates in Northwest Florida, where Gulf Power serves, will be slightly higher in recognition of the initial difference in the costs of serving the existing FPL and Gulf Power customers. The settlement will implement a transition rider/credit mechanism to address those differences, but the rates will be fully aligned by Jan. 1, 2027.
“Backed by multiple consumer and environmental groups, this comprehensive agreement benefits all 5.6 million FPL customers and our state by keeping bills low and accelerating investments in clean energy,” FPL President and CEO Eric Silagy said. “Florida is a rapidly growing state on the front lines of climate change, and our customers deserve bold, decisive, long-term actions as we continue building a more resilient and sustainable energy future all of us can depend on, including future generations. This agreement paves the way for FPL to continue delivering America’s best energy value – electricity that’s not just clean and reliable, but also affordable.”
The rate plan also supports long-term investments in infrastructure, clean energy, and innovative technology – including the largest solar buildout in the United States. Specifically, it supports the continuation of the “30-by-30” plan to install 30 million solar panels in Florida by 2030 and expands the company’s popular SolarTogether program. The plan is to more than double the size of what’s already the largest community solar program in the country. Overall, the settlement supports the development of 16 million solar panels and 3,576 MW of solar by 2025.
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“We found the settlement to be in the public interest because it keeps FPL customer rates stabilized and continues its investments in infrastructure for safe and reliable services and in clean energy to support fuel diversity,” PSC Chairman Gary Clark said. “Our decision today also unifies the rates of FPL and Gulf Power Company, which merged in January of this year.”
In addition, the agreement backs FPL’s green hydrogen pilot project in Okeechobee County and the FPL Manatee Energy Storage Center, the world’s largest integrated solar-powered battery system. Further, it supports investments in resilient infrastructure projects for a stronger and smarter energy grid., as well as the expansion of electric vehicle infrastructure throughout FPL’s territory.
The settlement was developed jointly with the state’s Office of Public Counsel, the Florida Retail Federation, the Florida Industrial Power Users Group, and the Southern Alliance for Clean Energy. It is also supported by Vote Solar, The CLEO Institute, and Federal Executive Agencies.
