FORT MYERS, Fla. — On Monday, Florida Power & Light Company (FPL) announced plans to request a formal rate increase from the Florida Public Service Commission (PSC) once its current agreement expires at the end of 2025.
FORT MYERS COMMUNITY CORRESPONDENT ANVAR RUZIEV SPEAKS WITH FPL AND AFFECTED CUSTOMERS ABOUT THE INCREASE:
The proposed adjustments, averaging 2.5% annually, aim to support the utility's ongoing commitment to reliability and energy diversification from January 2025 through 2029.
FPL estimates that despite the proposed increase, customer bills will remain significantly below the national average as well as those of many other electric utilities in Florida.
Following the formal submission of FPL’s plan, customers will have access to tools to calculate their individual rate adjustments.
The customary process for determining new base rates typically lasts about a year.
FPL plans to submit a detailed four-year rate proposal to the PSC as early as February, launching a thorough public review process during which customers will have numerous opportunities to voice their opinions before state regulators make a final decision.
FPL's current rate plan, which is set to conclude at the end of 2025, was unanimously approved by the PSC in 2021, following collaborative discussions with the state’s consumer advocate and various environmental and business groups.
The proposed increase has drawn mixed reactions from customers. Some are concerned about the long-term cost.
"Once you get an increase, the increase stays forever, but they're going to raise that 10 percent and that 10 percent will never go away," said one customer when asked about their thoughts on the proposal.
FPL spokesperson Bryan Garner highlighted the importance of these investments in supporting Florida’s rapid growth.
“We need to build additional power generation, power plants, additional poles and wires, and also technology to make sure that is running efficiently. It’s all to ensure you have reliable service and a resilient grid for years to come,” he said.
FPL points out that funds from the rate increase will support storm-hardening measures, such as underground power lines and implementing smart grid technology to restore power faster during outages.
Garner noted that programs, like the Storm Secure underground powerlines initiative, have already helped make the grid more resilient.
Public hearings on the proposal will begin in the spring, offering customers an opportunity to share their feedback directly with state regulators.
In a statement, FPL President and CEO Armando Pimentel expressed the company's commitment to providing value amid the necessary adjustments.
"While we know there is never a good time to request a rate increase, we must continue making smart investments in our grid and new generation resources to ensure reliable electricity,” Pimentel explained.
Key features of FPL's proposed rate plan include:
- 2.5% Rate Increase: The average adjustment of 2.5% is intended to enhance infrastructure reliability and support investments in energy diversification.
- Reliable Service: Investments in critical infrastructure are foundational to FPL's distribution service, which boasts a reliability rating 59% above the national average.
- Diverse Energy Generation: The proposal will foster continued investment in low-cost solar and battery storage technologies, complementing FPL’s existing natural gas and nuclear power generation.
- Cost Efficiency: FPL's relentless focus on minimizing operational costs has already saved customers billions, ensuring that rates remain competitive.
For more details on how to participate, visit fpl.com/answers.
Since 2021, FPL has seen an increase of roughly 275,000 customer accounts and expects to add around 330,000 more by the end of 2029, necessitating expanding generation capacity and distribution infrastructure to meet rising demands.
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FPL acknowledges that inflation affects operational costs, with labor and materials seeing significant price increases since the last rate filing in 2021.
As America’s largest electric utility, Florida Power & Light serves over 12 million residents while consistently striving to deliver reliable and affordable electricity.
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