Florida Power & Light (FPL), the largest electric utility in the United States, has filed to the state’s regulatory agency to increase customers’ base rates over the next four years, a move that could cost customers billions and is being called the largest rate hike request in history by critics.
Newsweek has reached out to FPL’s press team for comment via email on Saturday.
Why It Matters
FPL serves approximately 12 million people as the largest electric utility in the nation, making it an influential force in the industry and potentially setting a precedent for other companies.
The move comes after several years of high inflation, with the cost-of-living, notably groceries, remaining high for Americans. The average price of electricity per kilowatt-hour (kWh) in the U.S. rose to 17.9 cents in January 2025, up from 13.6 cents in January 2021, according to the Federal Reserve Bank of St. Louis data.
What To Know
On February 28, FPL filed a four-year request with the Florida Public Service Commission (FPSC) to set new rates for 2026, once the current base rate agreement concludes at the end of the year. The base rates are a major portion of customer’s bills, and the new rates are expected to impact businesses and residential users.
The utility company argues that the hike is necessary to invest in “electric service infrastructure” noting “the cost of components and labor necessary to install the infrastructure was also far higher than FPL expected both at the time it projected revenue requirement needs in its 2021 rate case and when it entered the 2021 Rate Settlement.”
FPL notes a base rate increase of $1.545 billion in 2026, and an additional rate increase of $927 million in 2027. For the following two years, 2028 and 2029, it seeks additional adjustments under the “Solar and Battery Base Rate Adjustment (“SoBRA”) mechanism” which allows FPL to “recover costs” related to solar generation and battery storage.
Critics have called out the increase as adding financial burden on customers, some citing that it is potentially the largest hike in U.S. history. The Tampa Bay Times reported the new rates could amount to a “$9 billion hike to customers’ base rates over four years.”
Commercial customers appear to face the largest increases, with the base rate for 50kWh demand increasing by $182, almost 13 percent. For large businesses using 2,000 kWh, the total increase is higher, with a difference of more than $9,000 with the new rate, nearly 15 percent.
The filings did not include sample monthly estimates for 2028 and 2029.
What People Are Saying
Zayne Smith, senior director of advocacy at AARP Florida, told Tampa Bay Times: “Rather than finding a fair balance between the needs of customers and their own operations, FPL has chosen to prioritize profit margins. This decision threatens to place undue financial strain on households already grappling with rising living costs.”
FPL President and CEO Armando Pimentel said in a February 28 press release: “At FPL, we’re focused on our customers every single day. The balanced plan we submitted to the PSC would enable FPL to continue to make smart investments in the grid and in new generation resources to benefit our customers and to power our fast-growing state. No other utility in the U.S. provides a better combination of reliability, resiliency and low bills than FPL.
Bradley Marshall, senior attorney with Earthjustice, said in a Friday statement: “This would be the largest rate increase in United States history, and that’s why we’re fighting it.”
Mary Gutierrez, scientist and director for Earth Ethics, Inc said in a statement: “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.”
What Happens Next?
The FPSC will review the request and then vote on the matter. It may approve the full request, a modification, or deny it. If approved, it would take effect in 2026.
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