If Approved, Florida Power & Light’s Rate Case Settlement Will Lead to Higher Utility Bills
FPL’s Settlement Agreement Proposes Unjustified Increased Profit Margins for the Utility; Florida Families Will Foot the Bill
FOR IMMEDIATE RELEASE
August 21, 2025
Tallahassee, FL — Yesterday afternoon, Florida Power & Light (FPL) filed a settlement agreement related to its historic $9 billion rate hike request. The settlement, opposed by Vote Solar and several official parties to the rate case, including those representing Florida’s residential customers, would guarantee a higher profit for FPL while increasing rates for hard-working Florida families.
FPL’s settlement agreement did reduce FPL’s initial $9 billion rate hike request to nearly $7 billion, but according to expert testimony, this is still too high. The State of Florida’s legislatively-appointed consumer advocate, the Office of Public Counsel, provided an expert analysis finding that FPL should decrease its rates by $620.5 million in 2026 instead of increasing them by $1.545 billion for the same period. If the settlement agreement is approved, the opportunity to advocate for that reduction would be eliminated.
One of the key provisions of FPL’s settlement agreement would set FPL’s return on equity (ROE) at a staggering 10.95%. ROE is a measure of how much profit a utility is allowed to make from its customers. The national average ROE for regulated electric utilities is a much lower 9.60%, which means that Florida families are paying more toward their utility’s profit margin than others.
“Imagine you could put your own money into an account that provided a guaranteed return of nearly 11%—that is essentially what FPL just asked ratepayers to fund for them,” said Allison Kvien, Vote Solar’s Southeast Regulatory Director. “FPL’s rate hike request comes at a time when families across Florida are already burdened with rising energy bills, and this back-room settlement deal, which did not include the Office of Public Counsel, will ultimately push families into further financial stress while guaranteeing FPL’s profits.”
If the Commission approves FPL’s settlement, FPL will have the second-highest ROE in the country. Vote Solar urges the Commission to cap FPL’s ROE at the national average of 9.60% to protect Florida ratepayers.
“Instead of applauding FPL for reducing its historic $9 billion rate hike request by 30%, we should be asking why FPL felt justified in making such an inflated request to begin with, and how many more billions of dollars are left in the settlement agreement beyond what is necessary? How can Floridians trust FPL to not grossly inflate their utility bills in the name of profit after making such an inflated ask?” said Kvien. “FPL’s settlement arrives at an ROE that is dangerously excessive for Florida families, and if approved, this decision will set a troublesome precedent, not just for all of Florida, but for utilities across the country.”
Vote Solar supports the inclusion of the Long Duration Battery Pilot program in the settlement agreement, which aims to optimize battery charging operations to leverage low-cost solar energy during periods of reduced load, among other valuable purposes. Storage, especially when paired with solar, is a proven method to reduce long-term costs for customers. This is particularly important since FPL customers already face unaffordable bills.
About Vote Solar
Vote Solar is a nonprofit advocacy organization working to advance state-level policies that make solar and clean energy solutions accessible to all. Since 2002, Vote Solar has worked to build a just and equitable energy future by leveraging deep policy expertise, strategic partnerships, and public engagement. In the face of powerful opposition, Vote Solar champions bold solutions that expand clean energy access, drive investment in frontline communities, and accelerate the transition to 100% clean energy.