Florida Bill Could Cap Electric Profits, Lower Bills

Florida families could finally see their electric bills stop climbing under a bold new proposal moving through the state legislature.

State Sen. Carlos Guillermo Smith introduced the Affordable Energy Reform Act, which would fundamentally change how utilities make money in Florida. The bill caps company profits at the national average and requires the Florida Public Service Commission to prevent utilities from passing certain costs onto customers.

The timing matters. Florida Power and Light recently won approval for a $7 billion rate increase spread over four years. According to clean energy advocates, 50 cents of every dollar in that hike went to profit and related taxes, not actual energy costs.

"Floridians are being squeezed by record utility rate hikes while investor-owned utilities post some of the highest profits in the nation," Guillermo Smith said in a statement. He wants the Public Service Commission to finally regulate utilities for the benefit of ratepayers, not shareholders.

The legislation includes a game-changing feature: tying utility profits to efficiency. Companies would earn more money by using less energy to generate electricity, creating a win for both household budgets and the environment.

Brooke Ward, Florida State Director of Food & Water Watch, has advocated for these changes for years. "It's really exciting to see this year that we have truly reformative legislation being introduced that will win real improvements in the lives of Florida families," she said.

The Ripple Effect

The bill would also boost transparency in rate hike decisions, giving Floridians a real voice in how their electricity costs are determined. That accountability could extend beyond one utility or one state.

Tampa Electric customers are already demanding change, with more than 25,000 people signing an online petition to sue the company for alleged price gouging. This past June, Tampa Electric customers paid the highest residential bills in Florida and the second-highest in the country among large utilities.

Sen. Don Gaetz is backing similar reforms with his own bill to limit profits and expand the Public Service Commission to include financial experts. When lawmakers from both parties target the same problem, real change becomes possible.

For Florida families choosing between paying the electric bill and other necessities, this legislation could transform electricity from a luxury back into an affordable basic need.