Florida regulators approve FPL rate agreement that keeps customer bills low, meets needs of growing state

Rhea-AI Summary

Florida Power & Light (NYSE: NEE) announced the Florida Public Service Commission approved a four-year rate agreement covering 2026–2029, with new rates effective Jan. 1, 2026. The plan raises the typical 1,000‑kWh residential bill in most of Florida by $2.50/month (≈2%) to $136.64 in 2026 while Northwest Florida sees a modest decline to $141.36. The settlement aims to keep bills well below the national average through 2029, enable construction of new generation and battery storage to serve an expected 335,000 new customers by decade end, and fund continued smart‑grid investments to support FPL’s reliability (noted as 59% better than the national average).

Positive

• Rate period set for 2026–2029 with Jan. 1, 2026 effective date
• Typical residential bill remains well below national average through 2029
• Plan enables buildout to serve 335,000 new customers by decade end
• Reliability measured as 59% better than national average

Negative

• Typical 1,000‑kWh residential bill in most of Florida increases by $2.50/month (≈2%) in 2026

Insights

Utility regulation analyst

PSC approval secures four-year rates that allow investment while keeping customer bills mostly flat; effective Jan. 1, 2026.

Approval by the Florida Public Service Commission implements a four-year rate plan for Florida Power & Light Company (FPL) covering 2026–2029. The settlement raises the typical 1,000‑kWh residential bill to $136.64 in 2026 (about 2%, or $2.50 monthly) while keeping Northwest Florida bills roughly flat at $141.36. The agreement explicitly funds new generation and battery storage capacity to serve an expected 335,000 new customers by the end of the decade.

Key dependencies and risks rest on execution and regulatory commitments. The plan assumes continued capital deployment for grid upgrades and storage while maintaining bills below the national average; actual outcomes will depend on project schedules, cost control, and any future regulatory adjustments. The approval followed an 11‑month review with extensive filings and public hearings, reducing near‑term regulatory uncertainty but not eliminating execution or construction risks.

Watchables in the near term include the rate effective date of Jan. 1, 2026, pacing of announced generation and battery procurements, and reported reliability metrics versus the claimed 59% better performance versus national averages. Over the next 12–36 months, monitor capital expenditure filings and construction milestones to confirm the plan translates into the intended reliability and low‑bill outcomes.

JUNO BEACH, Fla., Nov. 20, 2025 /PRNewswire/ -- The Florida Public Service Commission (PSC) today approved a four-year rate agreement that enables Florida Power & Light Company to continue to make the smart, necessary investments in the grid to power Florida's growth—while keeping customer bills well below the national average.

The agreement, developed in collaboration with a broad coalition of customer groups, sets rates for 2026 through 2029.

For 2026, FPL's typical 1,000-kWh residential customer bill in most of Florida will increase by $2.50 a month, or about 2%, from the current $134.14 to $136.64. In Northwest Florida, the typical residential customer bill will remain relatively flat, going from the current $143.60 to $141.36 in 2026.

A word from FPL President and CEO Armando Pimentel: "We appreciate the Florida Public Service Commission's thorough review of our rate plan. Today's vote enables FPL to continue to deliver some of America's most reliable electric service and meet the needs of our fast-growing state—and we project will keep customer bills well below the national average through the end of the decade. As we begin our second century of serving Florida, approval of this plan is a win for our customers and a win for the entire state."

Highlights of the approved settlement:

• Keeping bills low: The typical 1,000-kWh residential customer bill in 2026 will be about 20% lower than it was 20 years earlier when adjusted for inflation. FPL bills have been well below the national average for more than a decade and are projected to remain so through 2029.
• Serving a growing state: With FPL expecting to add 335,000 new customers by the end of the decade, the approved agreement enables FPL to build the new power generation and battery storage needed to continue providing reliable, low-cost electricity.
• Delivering reliable service: FPL's reliability is already 59% better than the national average, but reliability requires consistent investment. The agreement enables continued investments in smart grid technology and other measures to help automatically restore and prevent customer outages.

How we got here: With FPL's current four-year rate agreement set to conclude at the end of this year, FPL on Feb. 28 submitted a petition to the PSC to set new rates for 2026 through 2029. In August, FPL reached a four-year agreement with a broad coalition of customer groups on a revised rate plan and presented it to the PSC.

Thorough review: The rate-setting process took about 11 months. FPL submitted more than 70,000 pages of testimony, exhibits and discovery materials and answered more than 2,000 inquiries from PSC staff and intervening parties. FPL took part in 10 public hearings around the state in May and June, with more than 400 customers weighing in. FPL witnesses participated in 37 depositions and nine days of technical hearings in October.

What's next: New rates take effect Jan. 1.

About Florida Power & Light Company
Florida Power & Light Company is America's largest electric utility, delivering reliable power to more than 6 million customer accounts — serving approximately 12 million people across Florida. By leveraging a diverse energy mix, including nuclear, natural gas, solar and battery storage, FPL operates one of the most fuel- and cost-efficient power generation fleets in the U.S. and has earned the ReliabilityOne^® National Reliability Award for seven of the last ten years. FPL is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE), which is one of the largest electric power and energy infrastructure companies in North America and is a leading provider of electricity to American homes and businesses. NextEra Energy is also the parent company of NextEra Energy Resources, LLC, which, together with its affiliated entities, is advancing America's energy future with one of the largest and most diverse portfolios of power generation and infrastructure solutions. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.

Cautionary Statements and Risk Factors That May Affect Future Results
This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra Energy, Inc. (NextEra Energy) and Florida Power & Light Company (FPL) regarding future operating results and other future events, many of which, by their nature, are inherently uncertain and outside of NextEra Energy's and FPL's control. Forward-looking statements in this news release include, among others, statements concerning effects of the 2025 rate agreement. In some cases, you can identify the forward-looking statements by words or phrases such as "will," "may result," "expect," "anticipate," "believe," "intend," "plan," "seek," "potential," "projection," "forecast," "predict," "goals," "target," "outlook," "should," "would" or similar words or expressions. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance. The future results of NextEra Energy and FPL and their business and financial condition are subject to risks and uncertainties that could cause their actual results to differ materially from those expressed or implied in the forward-looking statements, or may require them to limit or eliminate certain operations. These risks and uncertainties include, but are not limited to, those discussed in this news release and the following: effects of extensive regulation of NextEra Energy's and FPL's business operations; inability of NextEra Energy and FPL to recover in a timely manner any significant amount of costs, a return on certain assets or a reasonable return on invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise; impact of political, regulatory, operational and economic factors on regulatory decisions important to NextEra Energy and FPL; effect of any reductions or modifications to, or elimination of, governmental incentives or policies that support clean energy projects of NextEra Energy and FPL and its affiliated entities or the imposition of additional tax laws, tariffs, duties, policies or other costs or assessments on clean energy or equipment necessary to generate, store or deliver it; impact of new or revised laws, regulations, executive orders, interpretations or constitutional ballot and regulatory initiatives on NextEra Energy and FPL; capital expenditures, increased operating costs and various liabilities attributable to environmental laws, regulations and other standards applicable to NextEra Energy and FPL; effects on NextEra Energy and FPL of federal or state laws or regulations mandating new or additional limits on the production of greenhouse gas emissions; exposure of NextEra Energy and FPL to significant and increasing compliance costs and substantial monetary penalties and other sanctions as a result of extensive federal, state and local government regulation of their operations and businesses; effect on NextEra Energy and FPL of changes in tax laws, guidance or policies as well as in judgments and estimates used to determine tax-related asset and liability amounts; impact on NextEra Energy and FPL of adverse results of litigation; impacts on NextEra Energy or FPL of allegations of violations of law; effect on NextEra Energy and FPL of failure to proceed with projects under development or inability to complete the construction of (or capital improvements to) electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities or other facilities on schedule or within budget; impact on development and operating activities of NextEra Energy and FPL resulting from risks related to project siting, planning, financing, construction, permitting, governmental approvals and the negotiation of project development agreements, as well as supply chain disruptions; risks involved in the operation and maintenance of electric generation, storage, transmission and distribution facilities, natural gas and oil production and transportation facilities, and other facilities; effect on NextEra Energy and FPL of a lack of growth, slower growth or a decline in the number of customers or in customer usage; impact on NextEra Energy and FPL of severe weather and other weather conditions; threats of geopolitical factors, terrorism and catastrophic events that could result from terrorism, cyberattacks or other attempts to disrupt NextEra Energy's and FPL's business or the businesses of third parties; inability to obtain adequate insurance coverage for protection of NextEra Energy and FPL against significant losses and risk that insurance coverage does not provide protection against all significant losses; a prolonged period of low natural gas and oil prices, disrupted production or unsuccessful drilling efforts could impact NextEra Energy Resources, LLC's (NextEra Energy Resources) natural gas and oil production operations and cause NextEra Energy Resources to delay or cancel certain natural gas and oil production projects and could result in certain assets becoming impaired; risk to NextEra Energy Resources of increased operating costs resulting from unfavorable supply costs necessary to provide NextEra Energy Resources' full energy and capacity requirements services; inability or failure to manage properly or hedge effectively the commodity risk within its portfolio; effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's and FPL's risk management tools associated with their hedging and trading procedures to protect against significant losses, including the effect of unforeseen price variances from historical behavior; impact of unavailability or disruption of power transmission or commodity transportation operations on sale and delivery of power or natural gas by NextEra Energy, including FPL; exposure of NextEra Energy and FPL to credit and performance risk from customers, hedging counterparties and vendors; failure of NextEra Energy or FPL counterparties to perform under derivative contracts or of requirement for NextEra Energy or FPL to post margin cash collateral under derivative contracts; failure or breach of NextEra Energy's or FPL's information technology systems; risks to NextEra Energy and FPL's retail businesses from compromise of sensitive customer data; losses from volatility in the market values of derivative instruments and limited liquidity in over-the-counter markets; impact of negative publicity; inability of FPL to maintain, negotiate or renegotiate acceptable franchise agreements with municipalities and counties in Florida; occurrence of work strikes or stoppages and increasing personnel costs; NextEra Energy's ability to successfully identify, complete and integrate acquisitions, including the effect of increased competition for acquisitions; environmental, health and financial risks associated with NextEra Energy Resources' and FPL's ownership and operation of nuclear generation facilities; liability of NextEra Energy and FPL for significant retrospective assessments and/or retrospective insurance premiums in the event of an incident at certain nuclear generation facilities; increased operating and capital expenditures and/or reduced revenues at nuclear generation facilities of NextEra Energy or FPL resulting from orders or new regulations of the Nuclear Regulatory Commission; inability to operate any of NextEra Energy Resources' or FPL's owned nuclear generation units through the end of their respective operating licenses or planned license extensions; effect of disruptions, uncertainty or volatility in the credit and capital markets or actions by third parties in connection with project-specific or other financing arrangements on NextEra Energy's and FPL's ability to fund their liquidity and capital needs and meet their growth objectives; defaults or noncompliance related to project-specific, limited-recourse financing agreements; inability of NextEra Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain their current credit ratings; impairment of NextEra Energy's and FPL's liquidity from inability of credit providers to fund their credit commitments or to maintain their current credit ratings; poor market performance and other economic factors that could affect NextEra Energy's defined benefit pension plan's funded status; poor market performance and other risks to the asset values of NextEra Energy's and FPL's nuclear decommissioning funds; changes in market value and other risks to certain of NextEra Energy's assets and investments; effect of inability of NextEra Energy subsidiaries to pay upstream dividends or repay funds to NextEra Energy or of NextEra Energy's performance under guarantees of subsidiary obligations on NextEra Energy's ability to meet its financial obligations and to pay dividends on its common stock; the fact that the amount and timing of dividends payable on NextEra Energy's common stock, as well as the dividend policy approved by NextEra Energy's board of directors from time to time, and changes to that policy, are within the sole discretion of NextEra Energy's board of directors and, if declared and paid, dividends may be in amounts that are less than might be expected by shareholders; XPLR Infrastructure, LP's inability to access sources of capital on commercially reasonable terms could have an effect on its ability to consummate future acquisitions and on the value of NextEra Energy's limited partner interest in XPLR Operating Partners, LP; effects of disruptions, uncertainty or volatility in the credit and capital markets on the market price of NextEra Energy's common stock; and the ultimate severity and duration of public health crises, epidemics and pandemics, and its effects on NextEra Energy's or FPL's businesses. NextEra Energy and FPL discuss these and other risks and uncertainties in their annual report on Form 10-K for the year ended December 31, 2024 and other Securities and Exchange Commission (SEC) filings, and this news release should be read in conjunction with such SEC filings. The forward-looking statements made in this news release are made only as of the date of this news release and NextEra Energy and FPL undertake no obligation to update any forward-looking statements.

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SOURCE Florida Power & Light Company

FAQ

What did FPL (NEE) announce about rates for 2026 through 2029?

The PSC approved a four‑year rate agreement for 2026–2029 with new rates effective Jan. 1, 2026.

How much will the typical FPL (NEE) 1,000‑kWh residential bill change in 2026?

In most of Florida the typical 1,000‑kWh bill rises by $2.50/month (≈2%) to $136.64 in 2026; Northwest Florida falls to $141.36.

How does the FPL (NEE) settlement affect reliability and grid investment?

The agreement funds continued smart‑grid investments; FPL states reliability is 59% better than the national average.

Will the FPL (NEE) plan support customer growth in Florida?

Yes; the plan enables building generation and battery storage to serve an expected 335,000 new customers by the end of the decade.

When do the new FPL (NEE) rates take effect?

New rates take effect on Jan. 1, 2026.

How long did the FPL (NEE) rate‑setting review take and what was involved?

The process took about 11 months, including more than 70,000 pages of filings, 10 public hearings, 37 depositions and nine days of technical hearings.