Do Electric Rates Always go Up?
Yeah pretty much they do.
Florida Power and Light received some major kudos from the solar world recently for reaching a significant company milestone.
They now have more than 12 million solar panels generating solar electricity in the state of Florida. And according to CEO Eric Silagy, nobody in the country is building more solar than FPL.
And next month they will demolish their last coal fired plant.
Well good for them!
And good for Florida’s carbon footprint!
Even though we could debate the merits of rooftop solar as opposed to utility scale solar, the fact remains that FPL is committed to expanding solar energy in the Sunshine State.
But as the great economist Thomas Sowell once said, “There are no solutions, there are only trade offs.”
Along with touting their solar accomplishments, FPL has filed a 4 year rate plan increase with the Florida Public Service Commission to ask for almost $2 billion increase in base rate revenues through 2025.
If their proposal is approved, FPL customers would see their rates go up substantially over the next 4 years, from about 10 cents a kilowatt hour today, to about 17 cents a kilowatt hour in 2025.
That's a 4.25% annual increase over the next 4 years.
So do electricity rates always go up?
Looks like it.
Which brings us back to “rooftop solar.” One way to avoid an increase in your electric rates is to produce your own electricity with your own solar panels.
Then you, like FPL, would be expanding solar in the sunshine state and avoiding any cost increases.
Hmm...That might be a solution without much of a tradeoff.
Wonder what Thomas Sowell would say?
Joe Collins is the owner of CIE Solar Energy, LLC.