FPL Rate Settlement Reduces Request, Limits Average Annual Bill Increases

An FPL rate settlement reduces request by nearly a third, limits average annual bill increases to 2%, and maintains consumer protections, according to the energy company.

Florida Power & Light Company and 10 key stakeholder groups filed a comprehensive four-year rate settlement agreement with state regulators that significantly reduces FPL’s original revenue request while keeping residential customer bills well below the projected national average through the end of the decade.




The agreement, which is subject to Florida Public Service Commission (PSC) approval, cuts FPL’s four-year revenue request by approximately 30% – shaving hundreds of millions of dollars from its initial proposal while still supporting continued investments in grid infrastructure and new generation to reliably serve Florida’s growth.

“This settlement agreement is a win for all FPL customers and a win for Florida,” FPL President and CEO Armando Pimentel said. “It supports our ongoing commitment to meet the resiliency and reliability needs of our fast-growing state, while keeping customer bills well below the national average. We expect the typical 1,000-kWh residential customer bill will increase next year by about $3.79 a month. Even with the proposed increase, FPL’s bill would be about 20% lower than it was 20 years prior when adjusted for inflation.”

Substantial reductions from original request: The settlement significantly scales back FPL’s initial rate request:

• 2026: Base rate revenue request reduced by 39%, from $1.545 billion to $945 million
• 2027: Base rate revenue request reduced by 17%, from $927 million to $766 million
• Total savings: Base rate revenues about $2.9 billion less than originally requested over the four-year period

Under the settlement, the typical 1,000-kWh residential customer bill would increase by about $3.79 a month next year – far below FPL’s original proposal. Even with this increase, FPL projects its bills will remain well below the national average through 2029. Residential customers would receive the lowest increase of all types of customers.

The settlement maintains essential regulatory oversight: all fuel and other variable costs recovered through bill clauses will be subject to annual PSC review and approval; infrastructure investments – including new solar and battery projects – remain under PSC oversight; performance standards and reliability metrics remain in place; and rate adjustments remain predictable and reasonable. FPL commits to not disconnect customers for nonpayment during heat advisories and extremely hot or cold temperatures (95 degrees or above or 32 degrees or below).




With FPL expecting to add about 335,000 new customers by the end of the decade, the agreement enables necessary investments in solar energy, battery storage and smart-grid technologies, while protecting customers from fuel price volatility. FPL’s existing solar investments have already saved customers more than $1 billion in avoided fuel costs.

The proposal amounts to an approximately 2% average annual residential bill increase from 2025 through the end of the decade. FPL’s typical residential customer bills are $24 lower than those of an average utility because the company has – by far – the lowest operating and maintenance costs in the industry. The settlement recognizes the financial pressures facing Florida families by keeping increases modest and predictable. The agreement also provides additional funding for eligible customers who may be struggling and need assistance paying their bills.

Parties to the agreement include the Florida Retail Federation, Florida Industrial Power Users Group, Florida Energy for Innovation Association, Walmart, Southern Alliance for Clean Energy, EVgo Services, Fuel Retailers, Electrify America, Federal Executive Agencies and Armstrong World Industries.

The PSC will set a schedule to thoroughly review the settlement agreement and full proposal, along with other information pending before the PSC, before voting on new rates. If approved, new rates would take effect January 1, 2026.