FPL rate hike on hold as Florida regulators await new settlement agreement

TALLAHASSEE, Fla. — A proposed multi-billion-dollar rate increase from Florida Power & Light (FPL) is now on pause as the Florida Public Service Commission (PSC) holds off on a decision pending the filing of a revised agreement from the utility giant.

What was expected to be a days-long technical hearing on FPL’s original request — which could have led to what’s been called “the largest utility rate hike in U.S. history” — has been suspended, with the PSC waiting to review the full details of a tentative settlement reached between FPL and several key stakeholders.

The delay comes as AARP Florida staff, volunteers, and ratepayers gathered Monday at the PSC’s Tallahassee headquarters to hand-deliver nearly 34,000 petitions urging the commission to reject a proposed increase.

WATCH: FPL rate hike on hold as Florida regulators await new settlement agreement

Zayne Smith, AARP Florida’s Senior Director of Advocacy, said Monday the tentative settlement gave her no hope of relief from the proposed increases.

“No, it actually doesn't give much hope at all,” said Smith. “Because the settlement totally eviscerates any transparency and accountability. Ratepayers like you and me and anyone watching this from their homes have when it comes to decisions that are being made on our behalf.”

FPL’s original proposal included an 11.9% return on equity (ROE) — well above the national average of 9.6% — and would have generated approximately $10 billion in additional revenue between 2026 and 2029. The plan would raise average residential electric bills by an estimated 2.5%.

PSC Awaits August 20 Filing

FPL announced last Friday that it had reached that “agreement in principle” with a broad coalition of intervenors, including the Florida Retail Federation, Walmart, the Southern Alliance for Clean Energy, and the Federal Executive Agencies. The parties jointly requested that the PSC suspend current hearings until a formal settlement is filed, which is expected by August 20.

“We are pleased to have reached an agreement in principle with key stakeholders,” said Armando Pimentel, President and CEO of FPL. “A settlement would provide a win for our customers and the state of Florida... ensuring that we can continue to provide reliable electricity to power our fast-growing state while keeping customer bills low.”

The PSC unanimously agreed to pause proceedings, Monday, with a new hearing timeline to be established once the final agreement is submitted. Any approved rates would take effect January 1, 2026.

Consumer Concerns Persist

Despite the pause in official proceedings, opponents remain wary. AARP Florida argued the revised agreement may still impose unfair burdens on consumers, particularly older adults on fixed incomes and working families already grappling with high housing and insurance costs.

“When you have an unnecessary rate hike, one that could be avoided — that's detrimental,” Smith said. “A $5, $10, $15 increase on your monthly power bill can be the difference between filling a prescription, buying a cart of groceries, or filling your tank with gas.”

FPL maintains that any revised deal will serve the state’s growing population and maintain grid resilience.

“Whatever we file is going to be a good deal for customers,” said FPL spokesman Bryan Garner. “It is going to keep bills low, well below the national average, reliability high, keep our grid resilient in the face of severe weather, and provide for the growth of this state.”

Garner noted that FPL anticipates adding more than 335,000 customers to its service territory by the end of the decade.

What’s Next

While utility-backed stakeholders prepare to finalize the agreement, thousands of Floridians — through AARP and other advocacy groups — are urging the Commission not to lose sight of transparency and affordability.

With the official rate hike proceedings temporarily halted, all eyes are now on the August 20 deadline, when FPL is expected to file the finalized proposal for regulatory review. A PSC settlement hearing would likely come next.