Florida Power & Light Company (FPL), the state’s largest utility, is in the middle of a complex rate proceeding that will determine electric rates for 2026 through 2029. Unlike most businesses, investor-owned utilities like FPL can’t simply raise prices. They must first justify the change through a year-long regulatory process that includes hearings, data reviews, and customer input.
On August 20, 2025, FPL announced a four-year settlement agreement that, if approved by regulators, would resolve its current rate case. For customers and business owners alike, the stakes are significant: the outcome will shape both household bills and the cost of doing business across Florida through the end of the decade.
SFBW spoke with Armando Pimentel, President and CEO of FPL, about why this agreement matters, what’s in it, and what comes next.
Why does FPL go through this lengthy rate-setting process in the first place?
Pimentel: Unlike other businesses that can adjust prices at will, we must earn approval first. That means providing data, rationale, and opening the process to public review. It’s rigorous by design—and it ensures transparency. Ultimately, we do this to keep delivering the reliable service customers expect. Just like maintaining a home or a car, the grid requires continual investment.
You’ve described the agreement as a win for customers. How so?
Pimentel: The settlement allows us to continue investing in Florida’s fast-growing energy needs while keeping bills among the lowest in the nation. For a typical residential customer, the increase in 2026 would be about $2.50 per month—or less than nine cents a day. When adjusted for inflation, that bill would actually be about 20% lower than it was two decades ago. And between now and 2029, customers will see average annual increases of just 2%, well below the rate of inflation.
Who was at the table in reaching this settlement?
Pimentel: We negotiated the agreement with a diverse group of customer representatives. After listening to customer feedback for months, it became clear this was the best path forward—one that balances affordability with the need to expand and modernize the grid.
What types of investments would this agreement support?
Pimentel: Many of the same smart grid technologies that already make us 59% more reliable than the national average. In fact, last year alone, these upgrades helped us prevent 2.7 million customer outages.
We’re also planning for Florida’s explosive growth. Since 2021, we’ve added 275,000 new customers and expect another 335,000 by 2029. That means new plants, expanded infrastructure, and stronger grid capacity.
These aren’t just expenses—they’re investments that pay off. Since 2001, by modernizing our plants, we’ve saved customers $16 billion in fuel costs. In other words, we’re helping them get more “miles to the gallon” out of their energy.
What’s next for the settlement agreement?
Pimentel: Regulators will hold hearings starting October 6 to review the agreement in detail and determine whether it’s in the public’s best interest. We believe strongly that it is, and we’ll put our best foot forward for our customers during that process.
Bottom Line for Business Leaders
For Florida’s business community, stable and predictable energy costs matter as much as reliability. If approved, FPL’s settlement aims to do both: keep rates low relative to the national average while building the capacity to power the state’s extraordinary growth.
