Florida threw out Duke's data center rules. FPL says its own already comply

FPL says it already meets the law Duke did not

On Nov. 3 Florida regulators turned down Duke Energy Florida's data center rates as filed, finding Duke had not shown that each big customer would bear its own full cost of service. The same day they suspended FPL's proposed changes for a staff review. FPL serves about 12 million people in Florida, and a new law says big users like data centers must pay their own full cost of power. FPL has asked regulators to agree, as a matter of law and without a hearing, that its rates already comply.

Why it matters: NextEra expects 8 gigawatts of FPL demand from such customers by 2032, Ketchum said. FPL charges them nearly $12 per kilowatt a month for new generation and binds them for at least 20 years. The law says those costs may not be shifted to other customers.

The story so far: A Florida law in effect since July 1 covers customers drawing 50 megawatts or more. It gave every utility until Oct. 1 to file rates that make those customers bear their full cost.

What FPL asked for

FPL filed its petition on Oct. 1. It asks the Florida Public Service Commission to "find, as a matter of law," that its existing large-load tariffs comply with the new law. FPL says it "is not requesting an evidentiary proceeding" and knows of no disputed fact. It asks the commission to act through proposed agency action, after which any affected person may ask for a hearing.

"Although the Commission approved the LLCS Tariffs before the July 1, 2026 effective date of Section 366.043, the LLCS Tariffs themselves already comply with the requirements of the statute," the petition says. The commission approved those rates in FPL's 2025 rate settlement, its staff says. FPL proposes only two other changes: a definition of a "foreign entity," and a rule barring service to a large customer that would be one.

What FPL's terms say

FPL's first data center rate is open only near three sites: Sunbreak in St. Lucie County, Tesoro in Martin County and Sugar in Palm Beach County. It covers a customer adding 50 megawatts or more at one site whose average draw is at least 85% of its peak, a test called load factor. The class is capped at 3 gigawatts. A second rate covers the rest of FPL's territory, up to the capacity FPL has.

The first rate charges $11.67 per kilowatt of demand a month for new generation, for a term of at least 20 years. A customer that leaves early pays an exit fee equal to the present value of the charges it would have paid for the rest of the term. Customers post security worth five years of those charges, or ten if they miss credit standards.

The law's definition of a large customer has no load-factor test, the statute shows. It lists "minimum load factors" among the tools the commission may approve. FPL's 85% requirement is one such tool, by our reading. The commission's staff has said nothing about it.

Why Duke was turned down

The commission denied Duke Energy Florida's large-load tariff as filed on Nov. 3, with leave to refile. It gave two grounds, its vote sheet shows. The tariff "excludes customers who meet the statutory definition of a large-load customer but do not request firm service." And Duke "has not adequately demonstrated" that its plan "reasonably ensures that each large-load customer bears its own full cost of service."

The vote was 5-0, the Florida Phoenix reported, and RTO Insider called the denial unanimous. Commission chair Gabriella Passidomo Smith said the new law "made it clear that large load customers must bear their own full cost of service," WUSF reported. She said Duke can serve large data centers while still meeting the law.

In October the commission's staff had recommended denying Duke's plan.

What happened to FPL's filing

On Oct. 22 the staff recommended suspending FPL's proposed changes "to allow staff sufficient time to review the petition and gather all pertinent information." The commission approved that on Nov. 3 and kept FPL's case open. The vote sheet gives no vote count. FPL's existing data center rates were not suspended.

The case schedule sets Nov. 23 for the order suspending the changes and Dec. 1 for a new schedule. It lists no date for a decision on FPL's claim. As of Nov. 5, no one had asked to join the case, the docket shows.

What Ketchum and FPL told investors

Ketchum said FPL's tariff provisions "have also been largely codified into Florida law," according to the transcript. "Hyperscalers know exactly how we plan to serve them in Florida," he said. He said NextEra raised its FPL large-load outlook from 6 gigawatts to 8 gigawatts by 2032. "We remain confident in our ability to announce a large load transaction by the end of the year," he said.

Scott Bores, FPL's president and chief executive, said: "We have a large pipeline of over 20 gigawatts of interest." He added: "These are complicated deals, multi-billion dollar deals that take some time."

Who's who

John Ketchum is chairman, president and chief executive of NextEra Energy, which is based in Juno Beach and owns Florida Power & Light. Scott Bores runs FPL. Gabriella Passidomo Smith chairs the five-member Florida Public Service Commission, which sets power rates. Duke Energy Florida is the utility whose plan the commission denied.

Their side

FPL says its exit fee "ensures customers are not left paying for underutilized infrastructure," WUSF reported. "We remain focused on getting this right for Florida by supporting economic growth and new jobs," said Duke spokesperson Ana Gibbs. Brooke Ward, Florida director of the advocacy group Food & Water Watch, called the Duke vote "a victory for affordability" and said: "This is not the end of the story."

What's next

What's next: The order suspending FPL's changes is due Monday, Nov. 23, and a new case schedule Tuesday, Dec. 1. Duke may refile its plan.

Sources we read

Florida Public Service Commission: FPL's petition, Oct. 1, document 07123-2026; the staff recommendation, Oct. 22; the Nov. 3 vote sheets on FPL and on Duke; the FPL case schedule and filings list, read Nov. 5. Florida Statutes, section 366.043. WUSF, Oct. 4 and Nov. 4. Florida Phoenix (Mitch Perry), Nov. 3, via Yahoo. RTO Insider, Nov. 3. Washington and Lee University on Smith's election as chair. The Motley Fool's transcript of NextEra's Oct. 21 call, with BigGo Finance and MarketBeat. NextEra Energy's third-quarter release, Oct. 21. Food & Water Watch, Nov. 3.