Florida Power & Light (FPL) is seeking to recoup $1.2 billion in hurricane recovery costs from its customers, spotlighting concerns over Florida’s energy resilience strategy. The new proposal would significantly impact Floridians’ monthly bills, with many questioning whether their rising energy costs reflect a failure of recent grid-hardening policies to deliver the promised improvements.
In 2019, State Representative Randy Fine’s grid-hardening bill was passed with a promise of a more resilient power grid. The bill directly allowed FPL to pass the cost of grid hardening directly to the customers drastically increasing rates, while avoiding the normal process of seeking rate increases. FPL gives thousands of dollars in donations to Fine’s campaigns. Fine also admitted to frequenting FPL’s exclusive unlicensed open-bar in Tallahassee for lobbyists and lawmakers. The legislation was touted as a key step in protecting Florida’s energy infrastructure from storm-induced outages, ensuring quicker restorations, and ultimately saving consumers from spiraling recovery costs. However, despite its passage, the legislation has fallen short of its objectives, leaving nearly 40% of Brevard customers in the dark after Milton which came through as barely a category 1 hurricane. Customers are now, facing the prospect of higher bills to cover recovery expenses.
“Consumers were told they’d see a stronger, more storm-resilient grid with fewer outages,” said a local energy advocate. “Instead, they’re facing extended power cuts and higher bills, effectively paying twice for services they’re not receiving as promised.”
FPL, meanwhile, has continued to post strong profits in the billions. The company’s ratepayers, however, are now being asked to shoulder an even greater financial burden. In recent years, critics argue, FPL’s spending has not adequately prioritized forward-looking infrastructure improvements, leaving customers to cover both storm-related damages and the cost of the utility’s unfulfilled promises of resiliency.
With Fine’s grid-hardening bill under scrutiny, advocates are calling for greater oversight and transparency in how ratepayer funds are spent. The bill’s failure to deliver on its objectives has cast doubt on whether Florida’s energy policy prioritizes sustainable, consumer-focused solutions. As FPL looks to recover costs, Floridians are urging state leaders and utilities alike to uphold their commitments, ensuring that their rising utility bills lead to meaningful improvements in grid resilience.
The impact of Fine’s legislation, coupled with FPL’s latest request, underscores a critical moment in Florida’s approach to energy policy. As consumers face growing costs and inconsistent service, the call for reform and accountability is only likely to grow.
FPL plans to file its petition with the Public Service Commission in the fourth quarter of 2024. The commission historically gives approval for such cost recovery measures.
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