Florida Power and Light lowers proposed rate increase

Florida Power and Light recently made the decision to better its chances of getting a rate increase approved by state regulators by lowering the proposed increase, which is still expected to rile things up between the utility and state officials, the Miami Herald reports.

According to the news source, FPL, the largest utility in Florida, is betting the decision to lower the rate hike to $548 million will improve its chances for gaining approval. The increase was decided upon after the utility consulted with large groups of electricity users, who urged the utility to cut back its initially proposed $690 million rate increase.

FPL vice president Mike Sole said he believes the proposed four-year agreement would increase stability for both ratepayers and customers, which will be tremendously beneficial as the company makes moves to construct three new power plants. If approved, the new rates would be eased in over the course of a year, resulting in an increase of about 1.3 percent for residential customers.

Utilities all over the country are raising electricity rates to fund new projects and to offset higher fuel costs. However, in states with energy deregulation laws, customers have the opportunity to switch energy providers if they find a rate plan that better suits their budget.