PSC Approves FPUC Settlement Agreement Reducing Initial Revenue Increase Request

Today, the Florida Public Service Commission (PSC) approved a Settlement Agreement (2025 Settlement) for Florida Public Utilities Company (FPUC) that significantly reduces the requested base rate increase for residential customers-from 44 percent to 26 percent-thereby helping to ease the overall financial impact on customers. The 2025 Settlement was jointly filed by FPUC, the Office of Public Counsel, Jackson County School Board, City of Marianna, and Jackson County.

The 2025 Settlement sets an annual base revenue increase of $8.4 million, implemented in two phases:
• A $7.4 million increase will take effect on July 2, 2025 through March 19, 2026.
• The full $8.4 million increase will be applied each year beginning March 20, 2026 through September 20, 2028.
• One-third of the deferred $1 million from the first year-$333,000-will be added each year from March 20, 2026 through September 20, 2028.

The 2025 Settlement also reduces FPUC's requested return on equity (ROE) from 11.30 percent to 10.20 percent, with a range of 9.20 percent to 11.20 percent. This adjustment decreases base revenues by $848,026.

Increases to certain miscellaneous fees and charges-including disconnect/reconnect fees, collection charges, and temporary service fees-totaling $164,495 in revenue, will go into effect on July 2, 2025, and remain in effect until FPUC's next rate proceeding.

A step increase to allow FPUC to upgrade substation and transmission assets will not exceed $727,778 and will increase reliability for both the Northeast and Northwest regions, while also significantly lowering fuel costs.

Beyond the financial considerations, the 2025 Settlement contains customer service and outreach enhancements, including upgraded bill payment options, dispute resolution improvements, website and social media engagement, town hall meetings, and public surveys. These improvements will help strengthen transparency and communication between FPUC and its customers.

Under the terms of the 2025 Settlement, FPUC cannot request another base rate increase before September 20, 2028, unless earnings fall below 9.20 percent.

FPUC serves approximately 33,100 retail customers in its Northwest and Northeast Divisions.