Florida Power & Light files to phase in base rate hike beginning in 2022
In an effort to deal with the effects of climate change, update resilience and guarantee sustainable energy, Florida Power & Light Company (FPL) filed a four-year request with the Florida Public Service Commission (FPSC) this week to begin phasing in higher base rates.
The upcharge would affect the utility’s approximately 5.6 million customers beginning in 2022. Even with the increased base rates, FPL intends to keep typical customer bills below the national average through at least 2025. Intended investments in infrastructure, technology, and clean energy specifically have pressed the need to increase rates.
“We recognize there is never a good time to request a rate increase, and we remain steadfastly committed to providing customers unparalleled value while building an energy future they can depend on,” FPL President and CEO Eric Silagy said. “Due to our consistent and disciplined, long-term investments, we’re able to provide service that is cleaner and more reliable than ever before while our residential, commercial, and industrial bills have remained among the lowest bills in the state and the nation for over a decade. Our proposed four-year rate plan beginning in 2022 will help us continue delivering unmatched value to customers by ushering in Florida’s energy future and keeping bills among the lowest in America.”
A rundown of that plan includes four major adjustments to base revenue requirements to be phased in gradually. In 2022, base annual revenue requirements will be adjusted by approximately $1.1 billion, followed by a $607 million adjustment in 2023. Both 2024 and 2025 could see the introduction of a Solar Base Rate Adjustment mechanism to recover up to 894 MW of solar projects each year, though a predicted reduction in fuel costs would somewhat offset this.
The results of FPL’s efforts so far can be seen in its most recent annual reliability report, which declared 2020 the company’s best overall service reliability year on record. Further, it has improved reliability by nearly 40 percent since 2006. It has consistently kept operating and maintenance costs low, which has helped save customers around $24/month. The recent merger of FPL and Gulf Power is expected to further reduce annual expenses and push forward on long-term combined system upgrades resulting in an approximately $1.53 billion benefit.
