FPL defends rate increase to strengthen grid as public hearings continue in Tallahassee

PENSACOLA, Fla. — Florida Power and Light says its goal is keeping power bills low while investing in reliability.

But many customers and watchdog groups are fighting the company’s latest request to raise rates. FPL has asked the Public Service Commission to approve a nearly $10 billion rate hike over the next four years.

The company argues the rate increase is needed to keep power reliable and harden the power grid against storms. But critics aren’t so sure.

FPL CEO Armando Pimentel Jr. says a $10 billion rate hike over the next four years is the appropriate investment to keep Floridians’ utilities intact.

“We deliver on this commitment by making sustained disciplined investments that provide value to our customers while keeping our bills and costs low,” said Pimentel.

Right now, a two-week hearing is underway in Tallahassee to consider the increase. The Public Service Commission held ten hearings earlier this year to get feedback from its roughly six million customers.

The company touts its success of keeping rates below the national average. On Wednesday, FPL’s Sarah Gatewood says this proposal would keep that status quo.

WEAR: Do you feel the customers will ultimately be happy with the solution that comes out of this?Gatewood: Our goal is to continue to provide the service and keep bills as low as we can. Under this proposal they’ll be lower over the national average.

While the base rate may stay below the national average under the proposal, the proposed 11.9% return on equity for its shareholders would make it the highest profit rate for any utility in the country.

The company’s facing heavy opposition against the proposal. The Public Counsel Office and groups, like “Florida Rising” and “Floridians Against Unfair Rates” argue customers will be hit the hardest.

In August, the Public Counsel Office said the proposal would increase FPL revenues by more than $6 billion over the next four years, noting a majority of FPL’s customers will see significantly increased bills.

Officials with FPL say they believe the proposal is in the best interest of its customers.

“This will allow us to make more investments in the grid to make it more reliable day to day, to make it more resilient when we have storms, whether it be hurricanes or snow storms like we saw this year,” Gatewood said.

WEAR: How does FPL respond to the opposition, like the Public Counsel Office who says FPL will benefit more than customers?Gatewood: The best thing here is what’s before the PPSC over the next two weeks is a settlement agreement we put together this summer.

The hearings are expected to last for two weeks.

FPL says concerned customers can use their bill calculator online. You can put it in your usage, and see what the cost will be if the settlement agreement is approved.