Florida Bill Could Cap Utility Profits, Lower Electric Bills

Electric bills in Florida could finally stop climbing thanks to bold new legislation that puts families before utility company profits.

State Senator Carlos Guillermo Smith introduced the Affordable Energy Reform Act to overhaul how Florida regulates power companies. The bill would cap the profits utilities can charge customers and require the Florida Public Service Commission to ensure companies don't pass certain costs onto ratepayers.

The timing couldn't be better. Last year, the PSC approved a $7 billion rate increase for Florida Power and Light spread over four years. According to clean energy advocates, 50 cents of every dollar in that increase went straight to company profits and related taxes.

"Fifty cents of every dollar of that rate increase was because of the return on equity. So it was for profit," explained Brooke Ward, Florida State Director of Food & Water Watch. She's been fighting for these changes for years.

Under the new proposal, utility profits would be capped at the national average instead of whatever companies can negotiate. The bill also introduces a game-changing twist: tying profits to efficiency means companies would earn more by using less energy to generate electricity.

That creates a win-win situation. Utilities would have real incentive to cut waste, families would pay lower bills, and Florida would burn fewer climate-warming fossil fuels.

The Ripple Effect

The legislation addresses a growing crisis for Florida families. Tampa Electric customers saw the highest residential bills in Florida last June and the second-highest in the entire country among large utilities. More than 25,000 residents have signed a petition accusing Tampa Electric of price gouging.

The reform would also boost transparency in how rate hikes get approved. Families would gain a stronger voice in decisions that directly impact their budgets. Senator Guillermo Smith put it simply: "Affordable electricity shouldn't be a luxury. It's a basic necessity."

He's not alone in pushing for change. Republican Senator Don Gaetz introduced companion legislation to limit excessive profit returns and expand the PSC to include a certified public accountant and financial analyst. Bipartisan support suggests real momentum for reform.

The changes would fundamentally shift Florida's energy landscape from rewarding utilities for spending more to rewarding them for doing more with less. That could mean cleaner energy, lower bills, and utilities finally working for customers instead of shareholders.

Florida families facing record-high bills now have powerful allies fighting to make electricity affordable again.