Your monthly FPL bill will be 18% higher by 2025
- Oct 27, 2021 10:42 pm GMT
As approved, the plan will generate an additional
“This is a terrible day for FPL customers,” said
Despite months of settlement negotiations, hearings and opposition from environmental groups, and even a revised plan submitted by FPL in August, bills for residential customers are now projected to increase along lines almost identical to the plan submitted by the utility in March.
Despite agreeing in August to reduce its original four-year rate hike request by a total
For example, the March projections called for the “typical” 1,000 kWh customer’s bill to increase from
The settlement that FPL announced in March with the
In an announcement following Monday’s approval, FPL accounted for the natural gas price hike by revising the projected
What this means for your bill over time
The coming four-year increase won’t be felt all at once. The latest projection calls for that “typical” bill to increase to
Of course, many homes consume much more than 1,000 kWh of electricity, and bills would increase accordingly. The projected increases could become even worse if fuel costs continue to surge. FPL pointed out in a news release that the latest cost hike projections were based on fuel projections that FPL filed with the PSC in September.
“Since the September fuel filing, natural gas prices have continued to increase,” the release said. “FPL is closely monitoring the market and will notify the PSC in November regarding any adjustments to the company’s 2022 fuel projection.”
The utility is required to file for periodic rate changes based on fluctuating cost of natural gas. When prices go up, customers pay more. When they go down, customers pay less. Base rates approved by the PSC on Tuesday reflect fixed costs projected for capital improvements, plant expansions, operational costs and the return on equity promised to investors.
The approved plan reduces revenue originally sought over the four years from a cumulative
Tension over plans
FPL touted its rate plan as supporting long-term investments in infrastructure, “innovative technology” and clean energy, including what it called the largest solar buildout in
It also said “typical” residential bills would remain “well below the national average through 2025.”
“Florida is a rapidly growing state on the front lines of climate change and our customers deserve bold, decisive, long-term actions as we continue building a more resilient and sustainable energy future,” FPL President and CEO
But advocates for consumers and environmental preservation criticized cost hikes in FPL’s plan on Tuesday, saying they favor large commercial and industrial customers over residential customers, allow FPL to build more power generating capacity than needed and give investors a return on equity that exceeds those of other utilities.
He also called the 10.6% return-on-equity midpoint — which is the middle of the 2 percentage point range that investors can earn on their shares — higher than what’s being allowed for most other investor-owned utilities in other states.
FPL had sought 11.55% and later revised it. Since 2016, the midpoint has been 10.55%.
Hightower of Floridians Against Increased Rates said the rate increase is the largest in
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