Why electric bills rise in Florida (2026): the 4 real causes

Electric bills in Florida rise for four reasons: the rate cases the Public Service Commission (PSC) approves for FPL, Duke and TECO; the fuel clause, which tracks natural gas prices; temporary charges to pay for hurricanes; and rising usage, almost always from air conditioning. The regulator decides the first three. You decide the fourth.

What is a rate case and what does it cost you?

A rate case is the process in which a utility asks the PSC to raise its base rates to fund plants, grid and its return. All three majors just went through one:

Sources: Central Florida Public Media, Duke Energy releases and Tampa Electric’s rates page. These increases are permanent: they do not come off the next year.

Why does fuel rise and fall on its own?

Because the fuel clause is a pass-through: the utility bills what natural gas (and, at Duke, coal) cost it, with no profit, and the PSC adjusts it every year with actual costs from the prior year and projections. On FPL’s September 2026 bill, fuel was $28.93 of a $128.45 total for 1,000 kWh. TECO attributed $1.66 of its January 2026 increase to the fuel adjustment.

This explains something that confuses many people: you can use exactly what you used last year and pay a different amount. Florida’s average residential price was 15.10 ¢/kWh in June 2026 versus 15.35 in June 2025, per EIA, precisely because fuel fell. When it climbs again, your bill climbs with you standing still. Definition at /en/glossary/fuel-charge.

What did the 2024 hurricanes cost?

A lot, billed as temporary charges. The PSC approved FPL $1.2 billion in interim charges for Debby, Helene and Milton: $12.02 a month per 1,000 kWh through all of 2025. Since actual costs came to $1.03 billion, in July 2026 the PSC ordered about $80 million refunded, and the typical September bill dropped to $128.45.

Duke billed about $33 per 1,000 kWh and removed it at the end of February 2026; combined with an $11 seasonal cut in March and a June-to-September true-up for having collected more than it spent, its 1,000-kWh bill landed about $50 (25%) below January’s. TECO billed $19.95 a month for 18 months (March 2025 to August 2026) to recover $464 million.

Separate from that is the Storm Protection Plan, which is permanent: at FPL it is $9.95 a month on the 1,000-kWh bill. That is the investment in hardening the grid so the next hurricane costs less.

Heads up: the 2026 drops are temporary charges coming off, not cheaper energy. Base rates went up and keep going up. If your bill this summer was lower than last summer’s, do not assume the house improved; compare kWh against kWh.

And how much of the increase is your house?

Here is the uncomfortable part. Everything above moves the price by a few dollars or tens of dollars a month. Usage can move it far more. In the United States, air conditioning is about 19% of residential electricity, per EIA; in a Florida home, the University of Florida (IFAS) estimates HVAC can exceed 40% of usage. And every degree below 78 °F on the thermostat costs up to 8% more in cooling.

A 12-year-old air conditioner that lost efficiency, a water heater working overtime, a pool pump running 12 hours a day: that doubles bills without a single rate changing. We break it down at /en/learn/5-things-raising-your-bill, /en/learn/old-ac-and-your-bill and /en/learn/the-3-consumption-pillars.

What do you control and what don’t you?

Solar deserves an honest note: it lowers the kWh you buy and shields you from energy and fuel increases, but not from fixed charges or the minimum (/en/learn/utility-minimum-charge-explained). How much it really saves, with your home’s numbers, at /en/learn/how-much-solar-really-saves.

When NOT to do anything

• If your increase coincides with a temporary charge that already came off (Duke in February, TECO in September), wait two bills before investing.
• If you use under 500 kWh a month, price barely affects you: the fixed charge dominates and no big equipment pays off.
• If you are comparing a 33-day period with a 28-day one, the “increase” may be the calendar.

What to check before deciding

• The kWh for the same month in 2025 and 2026: if they match and the total rose, it is the rate; if they rose, it is your house.
• The fuel line across three consecutive bills: it tells you whether the price is climbing.
• The fixed block (base charge, minimum, taxes): what no measure eliminates.
• Your air conditioner’s age and SEER (/en/learn/what-is-seer).
• Your utility’s current price versus the state average: /en/learn/electricity-cost-florida-2026.