Don Gaetz files bill to more closely scrutinize utility company profits

A lawmaker has filed a bill that aims to reform the way electricity rates in Florida are set, while also adding consumer protections against excessive utility costs.

Pensacola Republican Sen. Don Gaetz filed the measure (SB 126) to require that utility rates set by the Florida Public Service Commission (PSC) are economically justified, publicly explained and aligned with national standards.

To ensure rate fairness for consumers, the bill would require that the allowed Return on Equity (ROE) for Florida’s public utilities does not exceed the national average for comparable public utilities across the country.

An annual report would also need to be submitted by PSC to the Governor and the Legislature by March 1 of every year. The report would need to include an economic analysis of the rate changes, an assessment of the impact of excess ROE on consumers and comparisons of ROE models used by PSC and other states and federal agencies.

The bill would require the PSC to establish a formal schedule for when utilities can submit rate change requests, thereby adding predictability and structure to the rate review process.

The annual report would also need to detail executive compensation data for utility companies, including salaries, bonuses and stock options. “The summary must include the profits and losses of each entity as reported in its financial statements and highlight any compensation that exceeds the industry average,” the bill adds.

The PSC would be expanded from five to seven members. One member would be required to be a Certified Public Accountant (CPA), while another member would need to be a Chartered Financial Analyst (CFA) to strengthen financial oversight.

Bill language would also mandate that all PSC orders include adequate support and rationale when making conclusions and have all those decisions clearly explained how they are based on public interest.

The PSC would also have to give detailed reasoning when they accept or reject settlement agreements that affect substantial interests.

According to Energysage, Florida residents spend approximately $282 per month on electricity, costing a total of $3,384 per year. This is 16% higher than the national average electric bill of $2,923.  

While Florida on average has a lower average cost of approximately 14-15 cents per kWh compared to the national average of 15.22 cents per kWh, the Sunshine State’s hot, humid climate offsets this and leads to higher bills during warmer months because of increased air conditioning use.

Gaetz filed a similar measure (SB 354) during the 2025 Legislative Session. However, it died in the Agriculture, Environment, and General Government Appropriations Committee.

If passed, the bill would take effect on July 1, 2026.