Florida Power & Light (FPL) has filed details of a four-year settlement agreement that would scale back what critics had called the largest utility rate hike in US history. The deal, submitted Thursday to the Florida Public Service Commission (PSC), reduces the company’s original request— which would have generated about $10 billion for the company by about 30% while still allowing billions in new investment for Florida’s power grid.
The settlement would cap the typical residential bill increase to 13 cents a day — or $3.79 a month — starting in 2026. Under the plan, a 1,000-kWh bill in peninsular Florida would rise from $134.14 today to $137.93 in January 2026, eventually reaching about $148 by the end of 2029. Northwest Florida customers would begin paying the same rates in 2027.
FPL spokesman Andrew Sutton said the compromise was designed to balance growth, affordability, and reliability.
“This was developed jointly with a broad coalition of customer groups who all agree that this would be a win for the state of Florida and a win for all FPL customers,” Sutton said Thursday morning. “It’s going to enable FPL to continue to make the critical investments we need to make for reliable service in a growing state, while keeping bills well below the national average through the end of the decade.”
Sutton emphasized that the deal amounts to a 2% average annual increase through 2029 — “far below the rate of inflation,” he said. “You can’t say that about the price of gas. You can’t say that about the price of eggs. You certainly can’t say that about the price of housing.”
He added that growth is a key driver, with FPL adding 275,000 customers since its last rate adjustment in 2021 and projecting another 335,000 by decade’s end.
Still, the settlement has drawn sharp criticism. AARP Florida blasted the agreement as a “closed-door deal” that leaves residential customers — especially seniors on fixed incomes — with little voice.
“This proposed settlement doesn’t change the fact that residential customers — especially older adults on fixed incomes — continue to be left out of the process” said Zayne Smith, Senior Director of Advocacy for AARP Florida. "Deals cut behind closed doors with big business and utility interests show exactly why we need reforms ... to restore transparency and accountability to Florida’s utility regulation.”
Other advocacy groups went further, accusing FPL of giving away concessions to corporations at the expense of households and small businesses. In a filing Wednesday, environmental lawyer Bradley Marshall argued the proposal “grants unjustified concessions to its largest customers, like Walmart, in the form of gratuitous bill credits and unjustified cost shifting, paid for by the residential and small business customers of the State of Florida.” He added: “In a settlement, there is normally ‘give and take.’ In this case, there is no give — just take.”
Sutton pushed back, stressing that while the company compromised on the scale of its revenue request, it did not compromise on ensuring reliability or keeping bills comparatively low. “At the end of the day, this is a compromise, and there’s always give and take,” he said. “But we did not compromise on our ability to continue to invest for reliable service in a growing state, and we did not compromise on our commitment to keeping bills as low as possible.”
The PSC will now review the proposed agreement and decide whether to approve the new rates. If accepted, they would take effect Jan. 1, 2026.
“You know, it might just be time we take a look if HOAs are really even necessary.
Maybe we should just do away with homeowner associations as a whole.”
South Florida lawmaker Rep. Juan Carlos Porras (R-Miami) says it may be time to do away with homeowners associations altogether, as more Floridians speak out about rising fees, costly lawsuits, and even arrests tied to HOA disputes. He said this week that he is considering filing legislation in the next session that would abolish HOAs statewide.
