Summary
NextEra Energy, Inc.'s subsidiary, Florida Power & Light Company (FPL), has announced its intention to initiate a base rate proceeding in March 2021 with the Florida Public Service Commission (FPSC). This proceeding is significant as it will incorporate the merged operations of Gulf Power Company into FPL, which legally consolidated on January 1, 2021. FPL plans to propose a four-year rate plan starting in January 2022. Preliminary estimates suggest a request for a general base annual revenue requirement increase of approximately $1.1 billion effective January 2022, followed by an additional increase of approximately $615 million effective January 2023. The proposal also includes a mechanism to recover costs for new solar projects, potentially adding further revenue requirements in 2024 and 2025, though these are expected to be partially offset by fuel cost reductions.
Key Highlights
- 1FPL to initiate a base rate proceeding in March 2021.
- 2The rate plan will reflect the consolidation of Gulf Power Company into FPL.
- 3Proposed general base annual revenue requirement increase of approximately $1.1 billion effective January 2022.
- 4Further proposed annual increase of approximately $615 million effective January 2023.
- 5Inclusion of a Solar Base Rate Adjustment (SoBRA) mechanism to recover costs for up to 1800 MW of new solar projects in 2024-2025.
- 6Proposed allowed regulatory return on common equity midpoint of 11.50%, including a 50 basis point performance incentive.
- 7No further general base annual revenue requirement adjustments are expected before January 2026.