A bill directing the Florida Public Service Commission (PSC) to justify rate increases for investor-owned utilities and consider affordability advanced in its first committee stop Tuesday ahead of the 2026 Legislative Session.
The bill (SB 126) was introduced just weeks after the PSC approved a nearly $7 billion rate increase for Florida Power & Light’s (FPL) 12 million customers, the largest rate hike in history.
Sen. Don Gaetz, a Crestview Republican, introduced a “strike-all” amendment Tuesday before the Senate Regulated Industries Committee revising Florida law regarding the PSC, including:
— Expanding the number of PSC Commissioners from five to seven and requiring one Commissioner to be a certified public accountant and another a chartered financial analyst.
— Requiring the PSC, when issuing orders, to provide adequate support for its conclusions.
— Requiring the PSC to provide reasoned explanations when accepting or denying a settlement agreement.
— Requiring the PSC to submit an annual report on public utility rates that includes benchmarking and analysis on economics, costs, return on equity and executive compensation.
One provision that the amendment drops from Gaetz’s original bill would have capped a utility’s return on equity (ROE). That represents the utility’s allowed profit. FPL’s recently approved rate increase includes an ROE of 10.95%.
The removal of that provision upset two members of the public who spoke about the legislation during the hearing.
“The bill as amended has altered a critical tool — a cap that would limit shareholder profits, which is necessary to keep utilities from passing executive costs on to taxpayers,” said Brian Lee of Reclaiming Florida’s Future.
“The strike-all amendment weakens its ability to deliver real relief for Florida families,” added Taylor Brown. “Housing costs, insurance, and utility bills are pushing people to a breaking point.”
Florida law requires the rates of regulated utility companies to be “fair, just and reasonable.”
Gaetz’s bill says that the PSC should consider affordability in any proceeding before the agency that has the potential to affect rates.
“The reason affordability got into this bill is because when the latest case came before the PSC, associated with FPL, Commissioners were asked to consider affordability and they said, ‘We can’t because it wasn’t in the statute.’ We’re going to help them with that, I hope,” he told the committee.
Committee Chair Jennifer Bradley, A Fleming Island Republican, asked Mark Futrell, Deputy Executive Director with the PSC, whether the agency could define affordability.
“I think more certainty, more clarity as far as definitions from the intent of the Legislature is always helpful, but I think that we can work through that,” Futrell said. “Affordability is something that — we get the sentiment of it. I think we understand that part of it.”
Sen. Debbie Mayfield, a Melbourne Republican, said she had a number of concerns about the legislation, including the provisions about adding two new members to the PSC.
“If we have a problem with the PSC board, I don’t think increasing it would solve their problem,” she said. “We are the ones who do confirm them, so if we have a problem with the commission, it’s just as much our fault for confirming people that we don’t think are going to do a good job.”
Sen. Jason Pizzo, a Sunny Isles Beach independent, said he appreciated that Gaetz had removed the provision that would have capped a utility’s ROE.
“I am not for caps,” he said. “I think that’s socialism.”
Gaetz told the committee his intent was “not to tie the hands of the utility companies.”
“The intent of the bill is to direct the Commission to justify their decisions,” he said. “And to explain how they made their decisions and the effect that those decisions have on ratepayers.”
The bill was ultimately unanimously approved by the committee, 9-0, and moves to the Senate Committee on Agriculture, Environment, and General Government.
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Reporting by Mitch Perry. Florida Phoenix is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Florida Phoenix maintains editorial independence. Contact Editor Michael Moline for questions: [email protected].