Florida Power & Light to file request for new base rates

Florida Power & Light Company (FPL) will file a request in the coming months with the Florida Public Service Commission (PSC) for new base rates.

FPL intends to propose a four-year rate plan that would begin in January 2022. FPL has not requested a general rate increase since 2016. The new four-year plan calls for an adjustment to base annual revenue requirements of approximately $1.1 billion in 2022 and an adjustment to base annual revenue requirements of approximately $615 million in 2023.

Further, in 2024 and 2025, the company will make a request for a Solar Base Rate Adjustment (SoBRA) mechanism to recover up to 900 megawatts (MW) of cost-effective solar projects each year. FPL’s preliminary estimate is that it would result in general base rate adjustments of approximately $140 million in 2024 and $140 million in 2025, which would be partially offset by reducing fuel costs on the clause portion of customer bills.

The total of these rate increase requests over the four-year period would result in an estimated average increase in total revenue of less than 3.7 percent per year.

FPL says that typical customer bills will remain well below the national average even with the proposed increase.

The phased-in rate adjustments are required to help pay for the more than $29 billion FPL is investing during the four-year period from 2019 through 2022 to improve electric service reliability, reduce emissions, improve generation fuel efficiency, and make the electric system more resilient in severe weather. FPL will also continue to make significant investments throughout the base rate proposal timeframe to improve its customers’ service.

“Delivering clean, reliable, and affordable energy to customers is a duty each of us at FPL takes extremely seriously, particularly during these difficult and challenging times,” FPL President and CEO Eric Silagy said. “Providing an essential service to today’s customers comes with the fundamental responsibility to constantly look over the horizon to ensure we’re ready to serve them tomorrow as well. Of course, we’re mindful there’s never a good time to request a rate increase, but we remain steadfastly committed to providing customers unparalleled value for their money while building an energy future they can depend on. To do that, we’re asking for regulatory approval to continue our disciplined, long-term investment strategy in infrastructure, clean energy, and other innovative technology that are the foundation of our communities.”

FPL serves 5.6 million customers from Miami to Pensacola.

“Even as the price of many goods and services increases year after year – often with little to no warning – the price of electricity from FPL has come down over the last 15 years while service has become significantly cleaner and more reliable. This does not and cannot happen by accident. Instead, it’s the direct result of smart, long-term investments that reduce costs and improve efficiencies,” Silagy said.