FPL proposes rate increases

Florida Power & Light presented on Friday a proposal that would lead to higher electrical bills for customers in the next four years, and the company pointed to problems such as growth and the need to build more solar energy facilities.

The base rate proposal, presented in the Public Service Commission of Florida, would lead to increases of $ 1,545 billion in 2026 and $ 927 million in 2027. In addition, FPL would transmit costs to customers in 2028 and 2029 for solar energy projects and battery storage.

“Continuous growth and the need for additional generation are among the main drivers of the increase in FPL income requirements,” the proposal said. “FPL projects to add 335,000 clients more at the end of 2029. To meet this new growth and maintain operational reliability, FPL must invest in generation, transmission and distribution. Each of the new FPL clients deserves the same outstanding reliability and low bills that existing clients have experienced for a long time. ”

FPL in December presented a letter to the Public Service Commission that described its plans to find base rate increases. But the proposal presented on Friday was more detailed and will launch a case of months that will end with a decision of the regulatory commission. FPL is operating under a four -year rate plan that will expire at the end of 2025.

Base rates constitute an important part of the monthly invoices of customers, together with costs such as the fuel of the energy plant, and the commission will consider bulky amounts of information and audiences in the coming months. The State Public Advisor Office, which represents consumers, and business groups and consumers have already notified that they will intervene in the FPL case.

In a petition to intervene on Tuesday, for example, the Southern Aliance alliance for clean energy said the costs “will be assumed by FPL customers through their energy invoices, including FPL clients that are SACE members (Southern Alliance for Clean Energy).”

“This procedure will provide SACE and other parties, and the commission, the opportunity to prove the prudence of the investments made by FPL, and the expenses, before the costs are transferred to the customers of FPP, including the FPL clients who are also members of SACE,” said the request.

When addressing monthly invoices, public service companies generally cite a reference point for residential customers that use 1,000 kilowatt hours of electricity per month. FPL in recent years has also had different amounts of invoices for customers in its traditional and client area of ​​Northwest of Florida that were previously attended by Gulf Power Co.

FPL customers in the traditional service area that use 1,000 kilowatts per month currently pay $ 134.14. According to the proposal, that is estimated that it will be allocated to $ 142.37 in 2026; $ 148.29 in 2027; $ 149.93 in 2028; and $ 151.99 in 2029, according to utility.

The story continues

FPL customers in northwestern Florida who use 1,000 kilowatts per month currently pay $ 143.60. That would go to $ 147.10 in 2026; $ 148.29 in 2027; $ 149.93 in 2028; and $ 151.99 in 2029.

The proposal includes projects to improve electrical plants and add numerous solar energy facilities. For example, the public services company could build 1,490 megawatts of solar projects in 2028 and 1,788 megawatts of solar projects in 2029, together with battery storage facilities, according to the proposal.

A problem that will probably attract great attention during the case will be the requested capital return of FPL, a key measure of profitability. The commission generally approves a range of return on heritage and a “midpoint” in the range.

FPL proposed an average point of 11.9 percent, partly citing the need to attract money from investors. As a comparison, the Commission in December approved an average point of 10.5 percent in a case of Tampa Electric Co.

“Maintaining a solid financial position in all market conditions, good and bad, is essential for an essential service provider with the obligation to serve,” said the FPL proposal. “The FPL liquidity and the appropriate capital structure have admitted the ability to maintain the lights on and access capital under the terms that benefit customers. The success is attributable, in part, to maintain the costs of relatively low loans and provide competitive yields that encourage investors to continue providing the capital necessary to maintain and improve the FPL service level. “

But a group collection quickly issued a press release on Friday that criticizes the return of the capital proposed by FPL and the entertaining rate request.

“Public monopoly services should not obtain excessive profits at the expense of families and companies that struggle to reach the end of the month,” said Yoca Arditi-Rocha, executive director of the Cleo Institute, a non-profit group that works on climate issues.

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