FPL reaches agreement in principle with key stakeholders that would keep customer bills well below national average

Rhea-AI Summary

Florida Power & Light Company (NYSE:NEE) has reached an agreement in principle with key stakeholders on a four-year rate settlement that would maintain customer bills below the national average through 2029. The agreement, supported by multiple organizations including the Florida Retail Federation and Florida Industrial Power Users Group, follows FPL's February 28 petition for new rates for 2026-2029.

The company and stakeholders have filed a joint motion requesting the Florida Public Service Commission (PSC) to suspend technical hearings on the original rates petition. They plan to finalize and submit the settlement agreement by August 20, 2025. If approved, the new rates would become effective January 1, 2026.

Positive

• Agreement would keep customer bills well below national average through 2029
• Broad stakeholder support from multiple major organizations
• Enables continued smart investments while maintaining low customer bills
• Demonstrates successful negotiation with stakeholders avoiding potential regulatory conflicts

Negative

• New rates will take effect January 1, 2026, potentially impacting current rate structures
• Final agreement details and specific rate changes not yet disclosed

Insights

Utility Regulatory Analyst

FPL's pending rate settlement reduces regulatory uncertainty and supports ongoing infrastructure investment while maintaining competitive pricing through 2029.

Florida Power & Light's agreement in principle represents a significant regulatory milestone that substantially reduces uncertainty about the company's revenue framework for the next four years (2026-2029). The settlement, supported by a diverse coalition including industrial users, retailers, clean energy advocates, and federal agencies, bypasses what could have been contentious technical hearings before the Florida Public Service Commission.

The regulatory process has been extensive, with FPL responding to over 3,000 interrogatories from 13 intervening parties. The broad stakeholder buy-in suggests the company has struck an effective balance between maintaining affordable rates and securing sufficient revenue for continued infrastructure investment.

From an operational standpoint, the agreement would enable FPL to continue capital deployment in Florida's growing market while maintaining bills "well below the national average." This pricing advantage is crucial in a high-growth state where population expansion drives electricity demand but requires continuous infrastructure investment to maintain reliability.

While specific financial terms haven't been disclosed yet, the constructive regulatory outcome likely provides FPL with the predictable revenue stream necessary to fund its capital program without excessive rate shock to customers. The scheduled January 1, 2026 implementation aligns with the expiration of the current rate agreement, providing seamless regulatory continuity that investors typically value in regulated utilities.

JUNO BEACH, Fla., Aug. 8, 2025 /PRNewswire/ -- Florida Power & Light Company and key stakeholder groups have reached an agreement in principle on a comprehensive four-year rate settlement that would keep customer bills well below the national average through the end of the decade.

FPL and multiple intervenors filed a joint motion today asking the Florida Public Service Commission (PSC) to suspend technical hearings on FPL's original rates petition so that a settlement agreement can be finalized and filed with the PSC. The parties plan to work to finalize and file the agreement by Aug. 20.

A word from FPL President and CEO Armando Pimentel: "We are pleased to have reached an agreement in principle with key stakeholders. A settlement would provide a win for our customers and the state of Florida. We appreciate the constructive engagement of key intervenors. Any agreement that we reach should enable FPL to continue to make smart investments on behalf of our customers, ensuring that we can continue to provide reliable electricity to power our fast-growing state while keeping customer bills low."

Participants: The agreement in principle is supported by the Florida Retail Federation, Florida Industrial Power Users Group, Florida Energy for Innovation Association, Walmart, the Southern Alliance for Clean Energy, EVgo Services, Fuel Retailers, Electrify America, the Federal Executive Agencies and Armstrong World Industries.

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. That kicked off an extensive public review process in which FPL submitted thousands of pages of witness testimony and documents in support of its proposal. FPL responded to more than 3,000 interrogatories and requests for documents from 13 intervening parties and FPL witnesses participated in more than 30 depositions. The PSC conducted 10 public hearings across the state in May and June in which hundreds of customers weighed in on FPL's proposal.

What's next: FPL and the supporting parties will appear before the PSC Monday to ask commissioners to suspend the technical hearing to allow the parties to finalize the agreement. If the PSC accepts the motion, a new hearing date will be set to review the finalized agreement. Any new PSC-approved rates would take effect Jan. 1, 2026.

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.

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SOURCE Florida Power & Light Company

FAQ

What did Florida Power & Light (NYSE:NEE) announce about its rate settlement?

FPL announced an agreement in principle with key stakeholders for a four-year rate settlement that would keep customer bills below the national average through 2029.

When will FPL's new rates take effect under the proposed settlement?

The new PSC-approved rates would take effect January 1, 2026, following the conclusion of FPL's current four-year rate agreement.

Which organizations support FPL's rate settlement agreement?

The agreement is supported by Florida Retail Federation, Florida Industrial Power Users Group, Florida Energy for Innovation Association, Walmart, Southern Alliance for Clean Energy, EVgo Services, Fuel Retailers, Electrify America, Federal Executive Agencies, and Armstrong World Industries.

What is the timeline for FPL's rate settlement approval process?

FPL plans to finalize and file the agreement by August 20, 2025. The PSC will then review the agreement at a new hearing date to be determined.

How many customer feedback sessions did FPL conduct for this rate proposal?

The PSC conducted 10 public hearings across Florida in May and June 2025, where hundreds of customers provided feedback on FPL's proposal.