As Hurricane Matthew bore down on South Florida last week, Florida Power & Light’s executives agreed to back off the $1.3 billion rate increase it was seeking for the next four years and instead signed off on a $811 million settlement.
The deal, signed by FPL CEO Eric Silagy and the lawyer who represents the public in rate cases, J.R. Kelly, must be approved by the state’s Public Service Commission. If regulators agree, FPL would start charging customers $400 million in additional base rates beginning in January and at least $411 million in additional rate increases over the remaining three years of the settlement.
After the first year, rates would rise $211 million in 2018, and another $200 million in 2019, when a new power plant in Okeechobee comes on line. The monthly increase at the end of the four years for a customer that uses 1,000 kilowatt hours a month would be would be about $9.48, starting with $5 more next year. It is less than the $13.23 increase the company initially projected.