Florida Power & Light Raises Base Rates Again in January 2027 After 2025 PSC Settlement

Florida regulators approve a four-year rate deal for Florida Power & Light: base rates rise again on January 1, 2027, after an increase that already took effect in January 2026.

Florida’s largest electric utility, Florida Power & Light, will raise its base rates again on January 1, 2027, the second step of a four-year increase state regulators approved in November 2025. The company says the deal is still smaller than what it originally asked for.

The Florida Public Service Commission, the state agency that regulates investor-owned electric utilities in Florida, approved the settlement on November 20, 2025. It replaces FPL’s original four-year rate request, filed on August 20, 2025, which unions, businesses and consumer representatives had negotiated down before the commission ever voted.

FPL serves more than 6 million customer accounts, covering an estimated 12 million people across most of peninsular Florida and, since a recent merger, the former Gulf Power territory in the Florida Panhandle. Customers outside FPL’s service area – including those served by Duke Energy Florida, Tampa Electric or municipal utilities – are not affected by this particular case.

The new rates for 2026 and 2027

Under the settlement, FPL’s allowed base rate revenue rises by $945 million in 2026 and by $766 million more in 2027, according to the company’s own newsroom figures. That is far less than the $1.545 billion and $927 million FPL had originally requested for those two years – a roughly 39 percent cut for 2026 and 17 percent for 2027, after the settlement talks.

For a typical residential customer using 1,000 kilowatt-hours a month in FPL’s Peninsular Florida territory, the base bill rises from $134.14 before the settlement to $136.64 in January 2026, and then to $143.05 in January 2027 – an increase of about $6.41 a month, or roughly $77 a year, compared with the pre-settlement bill. FPL describes the combined effect as an average annual bill increase of about 2 percent through the end of the decade. These figures are FPL’s base electric charges; they do not include Florida sales tax, municipal franchise fees or gross receipts taxes, which are billed separately and vary by city and county.

FPL President and CEO Armando Pimentel called the outcome “a win for all FPL customers and a win for Florida,” arguing the settlement balances near-term bill impact against the utility’s investment plans.

Why the Florida PSC approved the increase

FPL had originally asked for roughly $9.8 billion in additional revenue over four years to pay for grid upgrades, new generation capacity and storm-hardening work. The Office of Public Counsel, Florida’s state-appointed consumer advocate, and several large commercial and industrial customer groups negotiated that down in a settlement that still leaves FPL with a cumulative increase of close to $6.9 billion over the same period, according to figures compiled by opponents of the deal.

The settlement also sets FPL’s allowed return on equity at 10.95 percent, a figure that the Office of Public Counsel and other intervenors argued was still too generous given FPL’s low cost of capital compared with other U.S. utilities. The commission approved the negotiated package rather than FPL’s original filing.

What happens in 2028 and 2029

The approved base rates do not stop in 2027. FPL’s own published rate table shows the typical Peninsular Florida bill rising further to $146.24 in January 2028 and $148.15 by December 2029, driven in part by additional revenue FPL is allowed to collect for new solar and battery-storage projects as they come online. FPL’s Northwest Florida territory, the former Gulf Power service area, sees a smaller 2026 adjustment and is expected to see separate changes in later years that FPL has not yet broken out by month.

How Florida’s rate-setting process works

In Florida, investor-owned utilities like FPL cannot raise base rates on their own. They must file a request with the Florida Public Service Commission, a five-member body appointed by the governor and confirmed by the state Senate, which holds evidentiary hearings, allows consumer and business groups to intervene, and ultimately votes on whether to approve, reject or modify the request. This case ran for roughly 15 months from FPL’s original filing to the November 2025 vote and included two weeks of hearings in October 2025 before the final settlement was approved.

Multi-year settlements like this one are common for large Florida utilities because they give both the company and regulators predictability, but they also mean customers are locked into a known path of increases for several years rather than facing a new rate case each year.

Customers who dispute a specific charge can file a complaint with the Florida Public Service Commission directly; the commission’s approval of the settlement does not remove a customer’s right to raise an individual billing dispute.

The jump between 2026 and 2027 is larger than the jump into 2026 itself, because the January 2027 step folds in both the second year of the base rate settlement and the first scheduled solar- and storage-cost recovery adjustments.

Sources and status

• Florida Power & Light / NextEra Energy, newsroom release on the approved settlement and bill tables, November 20, 2025: newsroom.fpl.com.
• NextEra Energy, settlement agreement news release with base rate revenue figures for 2026 and 2027, August 20, 2025: investor.nexteraenergy.com.
• Florida Public Service Commission, docket on FPL’s 2025 rate case (filings and orders): floridapsc.com.

Research and data status: November 9, 2026.

Transparency note: AI-assisted tools were used in researching, structuring and writing this article. The sources used are listed in the article. Publication takes place only after manual editorial approval. Country edition based on an article from Net Trends, researched for the United States.