Florida PSC Approves Four-Year FPL Rate Plan; Panhandle Sees Small Drop in 2026

The Florida Public Service Commission voted Nov. 20 to approve a four-year rate settlement for Florida Power & Light that was negotiated in August between the utility and a group of stakeholders.

The decision follows months of public debate and about an hour of discussion at a Special Agenda meeting before commissioners took the vote.

What customers in Northwest Florida will see

• For a household using 1,000 kilowatt-hours, the average monthly bill in Northwest Florida (the Panhandle) is expected to drop about $2 next year — from an estimated $143.60 to $141.36 in 2026.

• After 2026, rates in both regions will rise each year, converging at the same average monthly bill of $148.15 in 2029.

• Over the full four-year term, Panhandle customers will experience a net monthly increase of $6.79.

What customers on the peninsula will see

• Peninsula customers will see their average monthly bill rise by about $2.50 in 2026, to roughly $136.64.

• By 2029, residential customers across the state will be paying about $148.15 per month on average — an overall increase of about $14.01 per month for the rest of Florida over the four years.

Revenue and bill impacts

The settlement trims roughly $2.9 billion from FPL’s original four-year revenue request filed in February. Under the approved plan, FPL will collect about $945 million in additional revenue in 2026 and $766 million in 2027. The company will also collect additional amounts in 2028 and 2029 tied to solar and battery projects.

FPL’s February filing had sought much larger increases — including roughly $1.545 billion in 2026 and $927 million each year thereafter — and projected about $10 billion in total revenue over the four-year period once solar and storage charges were included.

Protections, tariffs and controversy

Commissioner Gary Clark described the settlement as “a balanced resolution for all parties” that includes customer protections and allows continued investment. “This is definitely in the public interest,” he said before the vote.

The agreement also creates large-load tariffs aimed at keeping heavy electricity users — such as data centers — on long-term contracts, with penalties for early exit. FPL says those tariffs will prevent ratepayers from shouldering costs tied to attracting large new customers.

FPL President and CEO Armando Pimentel said the approved plan will help the company continue to provide reliable service while keeping bills below the national average.

But the settlement drew sharp criticism from consumer advocates. The Office of Public Counsel, which represents FPL’s six million customers, opposed the deal, as did groups including Florida Rising and Floridians Against Unfair Rates. Brooke Ward of Food & Water Watch called the vote “shameful,” saying regulators cannot be trusted to protect families from unaffordable energy and urging the Legislature to act.

Who negotiated the deal

The settlement was reached after negotiations between FPL and a coalition that included the Florida Industrial Power Users Group, Florida Retail Federation, Florida Energy for Innovation Association, Walmart, EVgo Services, Americans for Affordable Clean Energy, Circle K, RaceTrac, Wawa, Electrify America, Federal Executive Agencies, Armstrong World Industries and the Southern Alliance for Clean Energy.

What’s next

Opponents have signaled continued pushback, and some advocate groups are exploring appeals. The PSC says the settlement provides a path for continued utility investment while aiming to balance costs for customers across Florida.