OKEECHOBEE- Florida Power & Light (FPL) is looking to increase their rates in their upcoming base rate agreement.

The current rate agreement ends in 2025. The new proposed base rate would increase an FPL customer's bill by an average annual rate of 2.5% from January 2025 through 2029.

FPL is seeking approval from the Florida Public Service Commission for increases of $1.545 billion in 2026 and $927 million in 2027.  FPL plans to also pass along costs to customers in 2028 and 2029 for solar-energy and battery-storage projects.

FPL is requesting up to 11.9% allowable profit or Return on Equity (ROE). The national average of ROE is 9.5%. The proposal raises the minimum base bill for residential customers from $25 to $30, forcing them to pay more regardless of their actual energy usage.

The utility company says the rate increase would allow them to continue to diversify their electricity generation mix, protecting customers from fuel price volatility, and continue to deliver reliable electricity to its 6 million customers.

The proposal has received pushback from the Office of Public Counsel, which represents consumers in the state, as well as from the AARP.

“This excessive rate hike unfairly burdens households, especially low-income seniors or those on fixed incomes,” said Jeff Johnson, AARP Florida State Director. “People will pay higher monthly bills for the same amount of power. The Public Service Commission must carefully scrutinize FPL’s proposal and ensure it is justified."

FPL exists as a regulated monopoly, meaning they are guaranteed profits and a customer base but have to request permission to increase the cost of electricity from regulators. The Florida Public Service Commission, which is charged with regulating utilities in the state.

FPL will bring its proposal to the Public Service Commission next month starting on Aug. 11.

FPL customers are already due to see a temporary increase in their bill this year. Recently the Florida Public Service Commission approved FPL’s $1.2 billion interim hurricane recovery plan, which translates to an approximate $12 monthly increase for residential customers that started in January 2025.