After almost a year of negotiations, the commission agreed to an increase in the base rate, a decrease in the fuel charge, and other annual rate adjustments. However, the company says new fuel-efficient power plants expected to come online in 2013, 2014, and 2016 will offset base-rate increases. The company says the new power plants are projected to save customers more than $1 billion in fuel and other costs above their cost of construction.
The company was OK'd for a 10.5% return-on-equity midpoint and a January 2013 revenue increase of $350 million. The company had originally proposed a 10.7% ROE midpoint and a $378 million revenue increase.
"By helping us keep bills low and reliability high, this four-year rate agreement is a win for all of our customers now and in the years ahead," said FPL President Eric Silagy. "This is an important step forward for Florida's economy and energy future that wouldn't have happened without the hard work of key customer advocacy groups and, ultimately, the endorsement of regulators."
According to the company's most recent annual report, Florida Power & Light is the state's largest utility and one of the largest utilities in the country, with approximately 24,500 MW of generating capacity and 4.6 million customer accounts; 85% of its power generation comes from natural gas, nuclear, and solar energy sources.