Florida Power and Light cuts initial rate hike request by 30% in settlement agreement

PENSACOLA, Fla. — On Wednesday, Florida Power and Light announced a settlement agreement. The company says this is a roughly 30% drop from the its initial rate hike request.

FPL says if this is approved, rates for Northwest Florida customers will be essentially flat for the next two years. The important thing to note is this settlement does not mean an increase won’t happen in the future.

Read FPL’s full press release on the settlement agreement below.

Earlier this year, FPL proposed its largest rate hike ever. The company says it was an effort to meet the growing demand for energy across the state.

That proposal was met with both support and backlash from the community. FPL has spent the last several months holding public hearings on the proposal, including in Pensacola.

FPL says it’s reached a settlement agreement to maintain lower rates for customers over the next four years.

“This is a win-win for all FPL customers,” said Andrew Sutton with FPL. “It means that FPL would continue investing for reliable service in a growing state while the typical Northwest Florida customer bill would stay roughly flat for the next two years.”

FPL estimates that residential customers in Northwest Florida currently pay an average of $144 a month. According to FPL, the new plan would drop rates by $1 dollar starting in January. The company estimates about an extra $5 on your bill by 2029.

“What we’re expecting right now at the end of a settlement agreement is an increase for the typical residential customer bill of a few dollars,” Sarah Gatewood with FPL said. “Again, there are other factors involved, such as fuel filings and other things, but from what we know right now, we expect it to be a very modest increase towards the end of the decade.”

This settlement agreement was filed Wednesday. The Public Service Commission is set to review the proposal later this year. They will vote to either approve or deny the settlement.