Utility Profits FPL files largest rate increase ever

If the Capex hit is too high, rate cases can be accelerated to help begin recovering the outlay. Some tariffs also allow for charges similar to fuel surcharges when fuel price goes up or like a condo assessment.

 

This is the largest rate hike request in United States history, impacting nearly 12 million people. The historic move from one of America’s biggest power utility operators is the latest in a string of unpopular corporate utility rate cases in Florida, hotly contested by residents demanding a transition off volatile, costly fossil fuels. Florida utilities today are reliant on fossil fuels, whose costs are volatile and rely on expensive infrastructure. Fracked gas is used to produce 73% of FPL’s energy.

FPL is also requesting a return on equity of 11.9% — well over the national industry average of 9.6%. A “return on equity” (ROE) refers to the percentage of profit a utility company generates relative to the amount of money invested by shareholders, essentially representing the return investors receive on their equity stake. Last year, Duke and Tampa Electric were awarded ROEs well below that threshold.
Florida Power & Light Requests Largest Rate Increase In U.S. History