Proposed Rate Settlement Sparks Debate

Article reposted with permission from The News Service of Florida.

With the Florida Public Service Commission poised to hear arguments next month about a proposal that would increase Florida Power & Light’s base electric rates, attorneys squared off Monday about whether the commission also should consider an alternative proposal filed by the state Office of Public Counsel and some consumer groups. Commission Chairman Mike La Rosa took up the issue and a series of other matters Monday in advance of the October hearing. FPL and numerous businesses and groups filed a proposed settlement Aug. 20 that would lead to base-rate increases of $945 million in 2026 and $766 million in 2027, according to the utility. FPL also would collect additional amounts in 2028 and 2029 for solar-energy and battery-storage projects. But the Office of Public Counsel — which is designated in state law to represent consumers in utility issues — did not agree to the FPL proposal. It and some consumer groups subsequently filed a settlement described as a “counter proposal” that would result in increases of $867 million in 2026 and $403 million in 2027. It also would leave open the possibility of FPL seeking increases of an estimated $195 million in 2028 and $174 million in 2029 for generation-related projects that could include solar and battery projects. But FPL has argued that the Office of Public Counsel proposal should be rejected, at least in part because it did not include the utility. FPL attorney John Burnett on Monday called the Office of Public Counsel proposal a “position paper” and said it “defies the whole regulatory paradigm” to suggest the utility could be left out of a settlement. But Ali Wessling, an attorney for the Office of Public Counsel, said the office is unaware of any legal requirement that a utility sign on to an agreement. Also, she said the Office of Public Counsel represents FPL’s residential customers. The Public Service Commission hearing is scheduled during the weeks of Oct. 6 to Oct. 10 and Oct. 13 to Oct. 17