FPL rate settlement cuts original request by 30%, keeps bills below national average

Published 20/08/2025, 21:22
FPL rate settlement cuts original request by 30%, keeps bills below national average

JUNO BEACH, Fla. - Florida Power & Light Company (NYSE:NEE) and ten stakeholder groups filed a four-year rate settlement agreement with state regulators on Wednesday that reduces the utility’s original revenue request by approximately 30% while maintaining residential customer bills below projected national averages.

The agreement, which requires Florida Public Service Commission approval, would increase typical 1,000-kWh residential customer bills by about $3.79 per month starting January 2026, representing an approximately 2% average annual increase through 2029.

The settlement significantly scales back FPL’s initial proposal, reducing the 2026 base rate revenue request by 39% from $1.545 billion to $945 million, and the 2027 request by 17% from $927 million to $766 million. Overall, the agreement represents about $2.9 billion less in base rate revenues than originally requested over the four-year period.

"This settlement agreement is a win for all FPL customers and a win for Florida," said FPL President and CEO Armando Pimentel in the press release statement. The company’s strong financial position is reflected in its impressive dividend track record - InvestingPro data shows NEE has maintained dividend payments for 55 consecutive years, with a current yield of approximately 3%.

The agreement maintains regulatory oversight of fuel costs, infrastructure investments, and performance standards. It also includes provisions to protect customers during extreme weather, prohibiting disconnections during heat advisories or when temperatures exceed 95 degrees or fall below 32 degrees.

FPL cites the need to serve approximately 335,000 new customers expected by the end of the decade as justification for the rate increase, which will fund investments in solar energy, battery storage, and smart-grid technologies.

Parties to the agreement include the Florida Retail Federation, Florida Industrial Power Users Group, Southern Alliance for Clean Energy, and several other organizations. If approved by regulators, the new rates would take effect January 1, 2026.

In other recent news, NextEra Energy reported second-quarter earnings per share of $1.05, surpassing Wall Street’s estimates of $1.01. The company also completed a $2 billion debenture remarketing through its subsidiary, NextEra Energy Capital Holdings, resetting the interest rate to 4.685% per year. Additionally, NextEra Energy declared a quarterly dividend of $0.5665 per share, payable on September 15, 2025, to shareholders of record as of August 28, 2025.

Analyst firms have been active in their evaluations of NextEra Energy. Melius Research initiated coverage with a Buy rating and a price target of $77.00, citing the company’s leadership in renewable energy. UBS reiterated its Buy rating and maintained a price target of $84.00, expressing confidence in NextEra’s long-term earnings growth potential. Meanwhile, Mizuho raised its price target to $74.00 from $69.00 after the earnings beat, while keeping a Neutral rating. These developments highlight the ongoing interest and analysis from investment firms regarding NextEra Energy’s financial performance and prospects.

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