Florida Power & Light Requests Largest Rate Increase In U.S. History
Food & Water Watch
Press Contact: Grace DeLallo [email protected]
This article originally appeared on FoodAndWaterWatch.org.
Today, Florida Power & Light (FPL) filed a Petition for Rate Increase across their 43 county service area to increase rates by $8.961 billion over the next four years in base rates, indicating future increases in 2028 and 2029 due to solar adjustments. FPL customers are already paying over $400 more annually than they were 5 years ago. The proposed rate increase would potentially add an additional $11.52 per month increase in base rates to the 1000kWh residential customer in 2026, increasing to $18.57 more per month in 2027, a 22% increase — or $360 more — over the next two years. Additional rate hikes are expected in 2028 and 2029.
In 2021, FPL was awarded the largest utility increase in Florida history at $5 billion. The rate hike filed today is nearly double that amount.
This is the largest rate hike request in United States history, impacting nearly 12 million people. The historic move from one of America’s biggest power utility operators is the latest in a string of unpopular corporate utility rate cases in Florida, hotly contested by residents demanding a transition off volatile, costly fossil fuels. Florida utilities today are reliant on fossil fuels, whose costs are volatile and rely on expensive infrastructure. Fracked gas is used to produce 73% of FPL’s energy.
FPL is also requesting a return on equity of 11.9% — well over the national industry average of 9.6%. A “return on equity” (ROE) refers to the percentage of profit a utility company generates relative to the amount of money invested by shareholders, essentially representing the return investors receive on their equity stake. Last year, Duke and Tampa Electric were awarded ROEs well below that threshold.
Brooke Ward, Senior Florida Organizer with Food & Water Watch said:
“Floridians across the state want affordable, clean energy and deserve leadership that will prioritize that. Instead, Gov. DeSantis and greedy utilities expect Floridians to bankroll an unsustainable fossil fuel reliance and pad corporate profits. We need to see leadership that advocates for an affordable future because if FPL’s ask is approved, it’s going to wreak havoc on millions of families struggling to survive. Families shouldn’t have to decide between turning on the A/C and affording their groceries for the month. Governor DeSantis’ Public Service Commission must oppose this egregious ask.”
“This would be the largest rate increase in United States history, and that’s why we’re fighting it,” said Bradley Marshall, Senior Attorney with Earthjustice, representing Florida Rising, LULAC, and ECOSWF.
Chelsea Rivera, Policy Organizer at Central Florida Jobs with Justice stated, “Floridians work hard to keep their families healthy and safe, but the rising prices of property insurance, utility bills, and overall cost of living means many of us are struggling to put food on the table and keep our lights on. Increasing utility rates will increase the financial burden on our already-struggling communities. We demand that the PSC and policymakers intervene on behalf of hardworking families across the state and deny FPL’s greed-motivated rate hike request.”
“Florida Power & Light (FPL) has proposed yet another rate increase, a move that will place additional financial burdens on consumers and communities across the state. At a time when many families are already struggling with the rising cost of living, higher utility bills will only add to their economic hardships, forcing difficult choices between essential expenses like food, healthcare, and housing,” said Mary Gutierrez, Scientist and Director for Earth Ethics, Inc. “This reason, among others, is why FPL’s request for a rate increase must be thoroughly scrutinized to ensure that it serves the public good rather than corporate profits. We urge regulators and policymakers to prioritize the well-being of Florida residents and explore alternative solutions that promote affordable, sustainable, and equitable energy policies.”
“Florida Power & Light’s rate hike will impact low-income households and struggling small businesses the hardest. For more than a decade, hardworking Floridians have not seen changes in their wages, yet the cost of living has steadily increased. While our communities struggle to make ends meet on the same income, they also face more frequent heat waves and cold fronts, leading to skyrocketing electric utility bills,” said Maria Claudia Schubert Fontes, Climate Justice Manager for Catalyst Miami. “This rate case further burdens Florida households as they will be forced to pay well over their fair share to subsidize the rates paid by commercial and industrial customers. We are calling on the Governor and PSC to ensure they listen to the needs of residential utility customers.”
“FL Power and Light is once again asking for an outrageous rate of profit in their requested rate increase,” said Christian Wagley, Coastal Organizer for Healthy Gulf in Pensacola, FL. “Residents of NW Florida are already suffering under FPL’s rates that have remained among the very highest in the state for the past three years, even after the utility promised us that our bills would go down when they took over Gulf Power Co. in 2022.”
Yoca Arditi-Rocha, Executive Director of The CLEO Institute added, “Monopoly utilities should not be making excessive profits at the expense of families and businesses struggling to make ends meet. For FPL’s Panhandle customers, this historic rate hike request is on top of a 64% increase from 2020-2023 which occurred after FPL bought Gulf Power. We need our leaders to stand up for people suffering in this affordability crisis. Keeping the lights on is a necessity not a luxury.”
“FPL’s proposed rate increase is a clear attempt to prioritize corporate profits over the well-being of Florida’s residents. At a time when students are already burdened with rising tuition costs and families are struggling to make ends meet, this hike will only push essential needs out of reach for those who need them most,” said Alyssa White, Climate Justice Organizer with Florida Student Power Network “With record profits already in hand, FPL’s focus remains on enriching shareholders rather than serving the people. We cannot allow corporate greed to dictate the future of our communities. It’s time to put people first and reject this unjust rate increase.”
Press Contact: Grace DeLallo [email protected]
This article originally appeared on FoodAndWaterWatch.org.
Today, Florida Power & Light (FPL) filed a Petition for Rate Increase across their 43 county service area to increase rates by $8.961 billion over the next four years in base rates, indicating future increases in 2028 and 2029 due to solar adjustments. FPL customers are already paying over $400 more annually than they were 5 years ago. The proposed rate increase would potentially add an additional $11.52 per month increase in base rates to the 1000kWh residential customer in 2026, increasing to $18.57 more per month in 2027, a 22% increase — or $360 more — over the next two years. Additional rate hikes are expected in 2028 and 2029.
In 2021, FPL was awarded the largest utility increase in Florida history at $5 billion. The rate hike filed today is nearly double that amount.
This is the largest rate hike request in United States history, impacting nearly 12 million people. The historic move from one of America’s biggest power utility operators is the latest in a string of unpopular corporate utility rate cases in Florida, hotly contested by residents demanding a transition off volatile, costly fossil fuels. Florida utilities today are reliant on fossil fuels, whose costs are volatile and rely on expensive infrastructure. Fracked gas is used to produce 73% of FPL’s energy.
FPL is also requesting a return on equity of 11.9% — well over the national industry average of 9.6%. A “return on equity” (ROE) refers to the percentage of profit a utility company generates relative to the amount of money invested by shareholders, essentially representing the return investors receive on their equity stake. Last year, Duke and Tampa Electric were awarded ROEs well below that threshold.
Brooke Ward, Senior Florida Organizer with Food & Water Watch said:
“Floridians across the state want affordable, clean energy and deserve leadership that will prioritize that. Instead, Gov. DeSantis and greedy utilities expect Floridians to bankroll an unsustainable fossil fuel reliance and pad corporate profits. We need to see leadership that advocates for an affordable future because if FPL’s ask is approved, it’s going to wreak havoc on millions of families struggling to survive. Families shouldn’t have to decide between turning on the A/C and affording their groceries for the month. Governor DeSantis’ Public Service Commission must oppose this egregious ask.”
“This would be the largest rate increase in United States history, and that’s why we’re fighting it,” said Bradley Marshall, Senior Attorney with Earthjustice, representing Florida Rising, LULAC, and ECOSWF.
Chelsea Rivera, Policy Organizer at Central Florida Jobs with Justice stated, “Floridians work hard to keep their families healthy and safe, but the rising prices of property insurance, utility bills, and overall cost of living means many of us are struggling to put food on the table and keep our lights on. Increasing utility rates will increase the financial burden on our already-struggling communities. We demand that the PSC and policymakers intervene on behalf of hardworking families across the state and deny FPL’s greed-motivated rate hike request.”
“Florida Power & Light (FPL) has proposed yet another rate increase, a move that will place additional financial burdens on consumers and communities across the state. At a time when many families are already struggling with the rising cost of living, higher utility bills will only add to their economic hardships, forcing difficult choices between essential expenses like food, healthcare, and housing,” said Mary Gutierrez, Scientist and Director for Earth Ethics, Inc. “This reason, among others, is why FPL’s request for a rate increase must be thoroughly scrutinized to ensure that it serves the public good rather than corporate profits. We urge regulators and policymakers to prioritize the well-being of Florida residents and explore alternative solutions that promote affordable, sustainable, and equitable energy policies.”
“Florida Power & Light’s rate hike will impact low-income households and struggling small businesses the hardest. For more than a decade, hardworking Floridians have not seen changes in their wages, yet the cost of living has steadily increased. While our communities struggle to make ends meet on the same income, they also face more frequent heat waves and cold fronts, leading to skyrocketing electric utility bills,” said Maria Claudia Schubert Fontes, Climate Justice Manager for Catalyst Miami. “This rate case further burdens Florida households as they will be forced to pay well over their fair share to subsidize the rates paid by commercial and industrial customers. We are calling on the Governor and PSC to ensure they listen to the needs of residential utility customers.”
“FL Power and Light is once again asking for an outrageous rate of profit in their requested rate increase,” said Christian Wagley, Coastal Organizer for Healthy Gulf in Pensacola, FL. “Residents of NW Florida are already suffering under FPL’s rates that have remained among the very highest in the state for the past three years, even after the utility promised us that our bills would go down when they took over Gulf Power Co. in 2022.”
Yoca Arditi-Rocha, Executive Director of The CLEO Institute added, “Monopoly utilities should not be making excessive profits at the expense of families and businesses struggling to make ends meet. For FPL’s Panhandle customers, this historic rate hike request is on top of a 64% increase from 2020-2023 which occurred after FPL bought Gulf Power. We need our leaders to stand up for people suffering in this affordability crisis. Keeping the lights on is a necessity not a luxury.”
“FPL’s proposed rate increase is a clear attempt to prioritize corporate profits over the well-being of Florida’s residents. At a time when students are already burdened with rising tuition costs and families are struggling to make ends meet, this hike will only push essential needs out of reach for those who need them most,” said Alyssa White, Climate Justice Organizer with Florida Student Power Network “With record profits already in hand, FPL’s focus remains on enriching shareholders rather than serving the people. We cannot allow corporate greed to dictate the future of our communities. It’s time to put people first and reject this unjust rate increase.”
