Florida Power & Light Company (FPL) notified the Florida Public Service Commission (PSC) on Monday that it expects to file a formal request in the coming months for new base rates.
The company, which now serves over 5 million Floridians from Miami to Pensacola, intends to propose a new four-year rate plan that would begin in January 2022 — once its current base rate settlement agreement concludes at the end of this year — and end in 2025.
Under the new plan, FPL would raise energy prices, resulting in an estimated average increase in total revenue of less than 3.7 percent per year.
The company said the rate adjustment will help it continue to invest in strengthening the grid against storms and hurricanes, provide new sources of clean energy and accommodate customer growth.
“Delivering clean, reliable and affordable energy to customers is a duty each of us at FPL takes extremely seriously, particularly during these difficult and challenging times,” said Eric Silagy, president and CEO of FPL. “Providing an essential service to today’s customers comes with the fundamental responsibility to constantly look over the horizon to ensure we’re ready to serve them tomorrow as well.”
In committing to keep typical residential customer bills “well below the national average through 2025,” Silagy noted that FPL’s current typical residential bill is lower than it was 15 years ago and 30 percent below the national average, largely as a result of investments and efficiency programs the company has implemented.
“Of course, we’re mindful there’s never a good time to request a rate increase, but we remain steadfastly committed to providing customers unparalleled value for their money while building an energy future they can depend on,” Silagy continued. “To do that, we’re asking for regulatory approval to continue our disciplined, long-term investment strategy in infrastructure, clean energy and other innovative technology that are the foundation of our communities. Over the past 15 years, we’ve repeatedly demonstrated that this innovative and long-term approach provides customers with lower bills and higher reliability today, and positions Florida for even greater success tomorrow.”
FPL is still finalizing the plan to cover the next four years (2022-2025), but expects the proposal to include:
- In 2022, an adjustment to base annual revenue requirements of approximately $1.1 billion.
- In 2023, a subsequent year adjustment to base annual revenue requirements of approximately $615 million.
- In 2024 and 2025, a request for a Solar Base Rate Adjustment (SoBRA) mechanism to recover up to 900 megawatts (MW) of cost-effective solar projects in each year. If the full amount of new solar capacity allowed under the SoBRA proposal was constructed, FPL’s preliminary estimate is that it would result in general base rate adjustments of approximately $140 million in 2024 and $140 million in 2025, which would be partially offset by a reduction in fuel costs on the clause portion of customer bills.
FPL says it expects to officially file the request in March of 2021.
For the full press release, click here.