JUNO BEACH -- Florida Power & Light (FPL) says they will request a rate increase once the current base rate agreement ends in 2025, which means customers will see an increase in their monthly power bill.

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. 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. 

"While we know there is never a good time to request a rate increase, we need to continue to make smart investments in the grid and in new generation resources so we can continue to deliver reliable electricity, enhance resiliency and diversify our generation mix to power our fast-growing state,” said FPL president Armando Pimentel. “That is our never-ending commitment to our customers and that's what this balanced plan does." 

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, will receive the details of FPL’s four-year rate plan in February. 

Once the commission receives the request a public review process begins that includes opportunities for input from customers prior to a decision by regulators. New base rate plans typically take about a year before.

Most recently the commission approved FPL’s 2021-2025 rate plan which saw the average FPL customer’s bill grow at an average annual rate of 2.8%. 

FPL customers are already due to see a temporary increase in their bill this year. Last month 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 starting in January 2025.