• Developed jointly with the state’s Office of Public Counsel, the Florida Retail Federation, the Florida Industrial Power Users Group and the Southern Alliance for Clean Energy, the agreement would support FPL’s continued long-term investments in infrastructure, clean energy and innovative technology
  • Would directly support the largest solar buildout in the United States, including 16 million solar panels across more than 50 new sites
  • Typical FPL residential customer bills are expected to remain well below the national average through 2025
  • Would unify the rates and tariffs of FPL and Gulf Power Company, which legally merged with FPL on Jan. 1, 2021
  • Typical 1,000-kWh residential customer bill in Northwest Florida is projected to decrease by the end of the proposed four-year rate plan

JUNO BEACH, Fla. – Florida Power & Light Company today announced a comprehensive, four-year rate settlement agreement developed jointly with the Florida Office of Public Counsel – the state’s consumer advocate – as well as the Florida Retail Federation, the Florida Industrial Power Users Group and the Southern Alliance for Clean Energy, that would phase in new rates starting in 2022. The agreement would support continued long-term investments in infrastructure, clean energy and innovative technology – including the largest solar buildout in the United States – while keeping FPL’s typical residential customer bills well below the national average through the end of 2025.

“This agreement is a big win for all 5.6 million FPL customers and our state, and it demonstrates what can be achieved through a collaborative process,” said FPL President and CEO Eric Silagy. “In a rapidly growing state on the front lines of climate change, our customers deserve bold and decisive, long-term actions as we build a more resilient and sustainable energy future all of us can depend on, including future generations. This agreement paves the way for FPL to continue delivering America’s best energy value – electricity that’s not just clean and reliable, but also affordable.”

The agreement would resolve FPL’s current base rate proceeding and directly support FPL’s groundbreaking “30-by-30” plan to install 30 million solar panels in Florida by 2030, which remains ahead of schedule and under budget. In doing so, the agreement would also unlock a second phase of the company’s highly popular and sold-out SolarTogether program – more than doubling what’s already the largest community solar program in the country across FPL’s service area that now spans from Miami to Pensacola(1). In all, the settlement agreement would support the development of 16 million solar panels across more than 50 new sites – enough to power approximately 1 million homes with clean, emissions-free energy from the sun.

In addition to solar energy, the settlement agreement would support FPL’s green hydrogen pilot project in Okeechobee County, an innovative technology that could one day unlock 100% carbon-free electricity that’s available 24 hours a day, as well as the FPL Manatee Energy Storage Center, the world’s largest integrated solar-powered battery system that’s projected to begin serving customers later this year. The agreement would also enable FPL to continue building a stronger, smarter and more storm-resilient energy grid in the face of Florida’s frequently severe weather.

The proposed agreement reflects a nearly 40% reduction in FPL’s proposed January 2022 base rate revenue increase, from $1.1 billion to $692 million, driven partly by a reduction in the company’s originally proposed return on equity midpoint from 11.5% to 10.6%. Likewise, FPL’s 2023 requested revenue increase would be reduced by nearly 10%, from $605 million to $560 million.

Other components of the proposed settlement agreement include:

  • Promote and support expansion of electric vehicle infrastructure throughout FPL’s service area.
  • Support the closing of a coal unit located in Georgia, in which FPL has a partial interest.
  • Support FPL’s ongoing efforts to develop and deploy cutting-edge smart grid technology.
  • Continue to support FPL’s ability to respond to hurricanes, tropical storms and other natural disasters.

Information for residential customers

FPL’s typical residential customer bill is lower today than it was 15 years ago and well below the national average. The proposed settlement agreement would keep typical residential bills well below the national average and among the lowest in Florida through 2025. In fact, residential bills are projected to grow modestly from 2021-2025 at an average annual rate of 2.5%, which is less than half the rate of inflation over the last 12 months and well below recent price increases in gasoline, housing, used cars and airfare.

Combined with current projections for fuel and other costs over the full four years of the rate plan, the proposed settlement agreement would phase in increases on the typical 1,000-kWh residential customer bill as follows:

  • In 2022, a base rate adjustment, along with projections for fuel and other costs, would add about $6.08 a month or about 20 cents a day on a typical bill.
  • In 2023, a subsequent-year base rate adjustment, along with projections for fuel and other costs, would add about $3.85 a month or about 13 cents a day on a typical bill.
  • In 2024, a solar base rate adjustment, along with projections for fuel and other costs, would add about $2.21 a month or about 7 cents a day on a typical bill.
  • In 2025, a solar base rate adjustment, along with projections for fuel and other costs, would add about $1.50 a month or about 5 cents a day on a typical bill.

Based on the settlement agreement, FPL’s standard 1,000-kWh typical monthly residential bill benchmark would be:

FPL Bills – 2006, 2021 & 2022-2025
2006
$108.61
2021
$101.70
2022
$107.78
2023
$111.63
2024
$113.84
2025
$115.34
“2006” reflects FPL’s average bill during the year 2006. “2021” reflects FPL’s average bill during the year 2021. “2022-2025” reflects the current projection for FPL’s typical 1,000-kWh customer bill from 2022-2025, which includes projected base rate adjustments, as well as current projections for fuel and other clauses. All bill totals include the state’s standard gross receipts tax, but do not include any local taxes or fees that vary by community. FPL bills do not include the company’s Northwest Florida region. All rates are subject to change.

Most FPL customers power their homes for just a few dollars a day. The majority of FPL customer households consume less than the standard 1,000-kWh typical bill benchmark. In fact, more than 1 million FPL customers pay $50 or less per month for electricity.

Consistent with the four-year rate plan filed in March, the proposed settlement agreement would unify the rates and tariffs of FPL and Gulf Power. In recognition of the initial difference in the costs of serving the existing FPL and Gulf Power customers, the settlement agreement would implement a transition rider/credit mechanism to address those differences in a reasonable manner for all customers. The transition rider/credit would decline to zero over a five-year period, at which point rates would be fully aligned by Jan. 1, 2027. Under the proposed settlement agreement, a typical 1,000-kWh residential customer bill in Northwest Florida is projected to be lower at the end of 2025 than it is today.

FPL Northwest Florida Bills – 2006, 2019, 2021 & 2022-2025
2006
$92.34
2019
$128.86
2021
$129.24
2022
$131.43
2023
$130.55
2024
$128.03
2025
$124.80
“2006” reflects Gulf Power’s average bill during the year 2006. “2019” reflects Gulf Power’s average bill during the year 2019, which is when FPL’s parent company, NextEra Energy, purchased Gulf Power. “2021” reflects Gulf Power’s average bill during the year 2021. “2022-2025” reflects the current projection for the typical 1,000-kWh customer bill in Northwest Florida from 2022-2025, which includes projected base rate adjustments as well as current projections for fuel and other clauses. All bill totals include the state’s standard gross receipts tax but do not include any local taxes or fees that vary by community. Bills also do not include surcharges for hurricanes. All rates are subject to change.

Information for business customers

FPL business customers’ typical bills are lower today than they were 15 years ago and are well below the national average. As part of the proposed settlement agreement, base rate adjustments would vary widely depending on rate class and customer usage. Typical business customer bills are projected to grow at an average annual rate of about 1% to 3% from 2021-2025, depending on rate class. Even with the proposed increase, typical business customer bills will remain below the national average through 2025.

The estimates above are based on the company’s proposed settlement agreement and subject to approval by the Florida Public Service Commission.