Florida Power & Light Co. (FPL) has agreed to a four-year rate settlement that would phase in new rates starting in 2022. The agreement was developed jointly with Florida Office of Public Counsel, Florida Retail Federation, Florida Industrial Power Users Group and Southern Alliance for Clean Energy. It will support continued long-term investments in infrastructure, clean energy and technology – including the largest solar buildout in the U.S. – while keeping FPL’s typical residential customer bills below the national average through the end of 2025.
The agreement would resolve FPL’s current base rate proceeding and directly support FPL’s 30-by-30 plan to install 30 million solar panels in Florida by 2030. In doing so, the agreement would also unlock a second phase of the company’s SolarTogether program. In all, the settlement agreement would support the development of 16 million solar panels across more than 50 new sites.
In addition to solar energy, the settlement agreement would support FPL’s green hydrogen pilot project in Okeechobee County as well as the FPL Manatee Energy Storage Center, an integrated solar-powered battery system.
The proposed agreement reflects a nearly 40% reduction in FPL’s proposed January 2022 base rate revenue increase, from $1.1 billion to $692 million, driven partly by a reduction in the company’s originally proposed return on equity midpoint from 11.5% to 10.6%. Likewise, FPL’s 2023 requested revenue increase would be reduced by nearly 10%, from $605 million to $560 million.
Other components of the proposed settlement agreement include promoting and supporting expansion of electric vehicle infrastructure throughout FPL’s service area as well as FPL’s ongoing efforts to develop and deploy cutting-edge smart grid technology.
“This agreement is a big win for all 5.6 million FPL customers and our state, and it demonstrates what can be achieved through a collaborative process,” says Eric Silagy, FPL’s president and CEO. “In a rapidly growing state on the front lines of climate change, our customers deserve bold and decisive, long-term actions as we build a more resilient and sustainable energy future all of us can depend on, including future generations. This agreement paves the way for FPL to continue delivering America’s best energy value – electricity that’s not just clean and reliable, but also affordable.”