Full Breakdown
Florida Public Service Commission Approves Historic Rate Hike for Florida Power & Light
11/21/2025, 10:36:40 PM
Overview of the Rate Hike Decision
On November 20, 2025, the Florida Public Service Commission (PSC), appointed by Governor Ron DeSantis, approved a controversial $7 billion rate hike for Florida Power & Light (FPL) customers, marking the largest rate increase in U.S. history. This decision will result in residential customers paying an additional $175 annually starting in 2026, with projections indicating a total increase of $289 by January 2028. Over the period from December 2020 to January 2026, average bills for FPL customers using 1,000 kilowatt hours per month are expected to rise by 45%, equating to an additional $513 annually.
Justification for the Rate Increase
FPL has justified the rate hike as necessary for expanding infrastructure to accommodate an anticipated growth of over 330,000 new customers by the end of the decade. The company claims that these investments will enhance reliability and keep customer bills below the national average. FPL spokesperson Andrew Sutton stated, “This means FPL can invest in new power plants and technology for reliable service while keeping bills well below the national average through the end of the decade.”
Opposition and Criticism
The PSC's decision has faced significant backlash from various stakeholders, including 29 Florida elected officials, advocacy groups, and consumer representatives. Critics argue that the PSC is prioritizing corporate profits over consumer welfare. Brooke Ward, Senior Florida Organizer for Food & Water Watch, described the decision as a “slap in the face” to families already struggling with high costs. Sarah Brummet from the Party for Socialism and Liberation criticized the PSC as a “captured regulatory body” that fails to defend public interests.
Katina Rentas Negrón, Climate Justice Campaigner for Florida Rising, highlighted the disproportionate impact on low-income and minority communities, stating, “Our communities deserve commissioners that will look out for them.” The Office of Public Counsel, which represents utility customers, has indicated plans to appeal the decision to the Florida Supreme Court.
Financial Implications and Future Outlook
The approved settlement includes a target return on equity of 10.95%, which has been criticized as excessive by some PSC members and consumer advocates. The PSC's decision is expected to lead to cumulative increases of approximately $6.9 billion over four years, with additional hikes planned for solar and battery projects in subsequent years.
FPL's President and CEO Armando Pimentel characterized the approval as a “win for our customers and a win for the entire state,” asserting that it enables the company to continue delivering reliable electric service. However, the approval of this rate hike follows another recent increase for Tampa Electric, which raised rates by 6% earlier in November.
Verbatim Quotes
- “This shameful decision illustrates why our state energy regulators cannot be trusted to ensure that families have reliable, affordable energy,” said Food & Water Watch Senior Florida Organizer Brooke Ward.” — Brooke Ward, Senior Florida Organizer, Food & Water Watch
- “It is an outrage that the Florida Public Service Commission approved yet another rate increase for Florida Power and Light.” — Sarah Brummet, Party for Socialism and Liberation
- “The fight is not over. We will continue to fight for affordable, reliable, and clean energy for every Florida resident.” — Jyoti Parmar, Clean Energy Organizer, Sierra Club of Florida
Conflicting Reports & Gaps
While FPL claims the rate hikes are necessary for infrastructure improvements, critics argue that the PSC's approval reflects a failure to protect consumer interests. The Office of Public Counsel and various advocacy groups are preparing for legal challenges, indicating a potential conflict over the legitimacy and necessity of the rate increases.
The situation remains dynamic, with further developments expected as stakeholders mobilize against the PSC's decision.
