Florida Electricity Rates
Florida’s average residential electricity rate is 15.54¢/kWh—14% below the national average. Florida is a regulated market where Florida Power & Light (the nation’s largest utility), Duke Energy Florida, and Tampa Electric serve the state. Low-cost natural gas fuels 70% of generation, keeping per-kWh rates affordable, though heavy AC use drives monthly bills to ~$170.
Florida’s Regulated Electricity Market
Florida operates a fully regulated electricity market overseen by the Florida Public Service Commission (PSC). Your electric utility is determined by your physical address, and you cannot choose a competitive electricity supplier the way consumers in Texas, Ohio, or Pennsylvania can. Florida has never seriously pursued electricity deregulation, and the state’s constitutional amendment process has been used to block attempts to open the market to competition.
A subsidiary of NextEra Energy (the world’s largest generator of wind and solar energy), FPL is the largest electric utility in the United States by customer count. FPL serves Miami, Fort Lauderdale, West Palm Beach, Daytona Beach, and most of eastern Florida. The utility is known for its operational efficiency and has among the lowest per-kWh rates of any major U.S. utility.
Duke Energy Florida serves the central corridor including St. Petersburg, Clearwater, Ocala, and parts of Orlando. The utility has been investing heavily in solar generation, adding over 1,000 MW of solar capacity, and completed storm cost recovery from recent hurricanes in early 2026, resulting in lower bills.
Tampa Electric serves the greater Tampa Bay area and has been transitioning from coal to natural gas and solar. The utility retired its last coal units and is building new solar farms to meet growing demand in one of Florida’s fastest-growing metro areas.
JEA is the largest community-owned utility in Florida, serving the Jacksonville metropolitan area. As a municipal utility, JEA is not regulated by the PSC and operates as a nonprofit. The utility generates power from a mix of natural gas, petroleum coke, and growing solar capacity.
Municipal Utilities in Florida
Beyond the major IOUs, Florida has 34 municipal utilities including JEA (Jacksonville), OUC (Orlando Utilities Commission), Gainesville Regional Utilities, and Tallahassee Utilities. Municipal utilities serve about 15% of Florida’s population and are governed by local city commissions rather than the state PSC. Rates are often competitive with or lower than IOU rates.
Hurricanes, Storm Hardening & Your Electric Bill
No state’s electricity market is shaped more by weather than Florida’s. Hurricane exposure doesn’t just cause outages—it permanently affects the rates every Florida customer pays.
When major storms damage utility infrastructure, the Florida PSC allows utilities to recover restoration costs through temporary surcharges on customer bills. After Hurricanes Ian (2022) and Milton (2024), FPL and Duke Energy added storm cost recovery charges that increased bills by $5–15/month for 12–24 months. These surcharges are separate from base rates and appear as line items on your bill.
To reduce future storm damage, Florida utilities have invested billions in storm hardening—replacing wooden poles with concrete and steel, undergrounding power lines in vulnerable coastal areas, and aggressive vegetation management. This proactive spending increases base rates but dramatically reduces post-storm restoration costs and outage duration. FPL reports that its hardened infrastructure now restores power 50% faster than a decade ago, and customers in hardened areas experience 40% fewer outages.
The Storm Cost Cycle
Before the storm: Higher base rates from storm hardening investments ($2–5/month baked into regular rates).
During the storm: Faster restoration in hardened areas. FPL restored 95% of customers within 5 days after Hurricane Milton vs. 10+ days in unhardened areas.
After the storm: Temporary surcharges of $5–15/month for 12–24 months to cover remaining restoration costs. These are approved by the PSC and eventually expire.
Florida’s Energy Mix & the Solar Surge
Florida is the third-largest electricity-consuming state in the nation, behind Texas and California. The generation portfolio has shifted rapidly in the past decade, with solar emerging as a major contributor.
Florida’s heavy reliance on natural gas (~70% of generation) makes electricity prices sensitive to gas market fluctuations—a key reason bills spiked in 2022 when natural gas prices surged. The state’s two nuclear plants—Turkey Point (Miami-Dade County) and St. Lucie (St. Lucie County)—both operated by FPL, provide reliable carbon-free baseload generation.
Solar is the story of the decade. Florida went from virtually zero utility-scale solar in 2016 to third in the nation in installed capacity by 2025. FPL alone operates over 80 solar energy centers, and the “Sunshine State” moniker is finally living up to its potential. However, unlike California, Florida has no renewable portfolio standard (RPS) requiring utilities to source a specific percentage from renewables—the solar buildout has been driven entirely by economics, with solar now cheaper than new gas generation.
Why Florida Has Never Deregulated
Florida is one of the largest states that has never seriously pursued electricity deregulation. Understanding why provides important context for how the state’s energy market works.
Unlike California, Texas, and many Northeastern states that opened their markets in the late 1990s, Florida’s utility industry—led by FPL parent company NextEra Energy—has successfully argued that the state’s regulated model delivers low rates, reliable service, and efficient capital deployment. With residential rates 14% below the national average, the “if it isn’t broken” argument has carried significant weight.
In 2020, a proposed constitutional amendment (Amendment 3) would have opened Florida’s electricity market to competition. FPL and Duke Energy spent over $30 million to defeat it, and it never made it to the ballot. The utility industry argued that deregulation would raise rates, complicate storm response, and introduce unreliable providers—pointing to California’s 2001 crisis and Texas’s 2021 Winter Storm Uri as cautionary examples.
For Floridians, the practical implication is clear: you cannot choose your electricity provider. Your utility is determined by your address, and your rates are set by the Florida PSC. If you want electricity choice, you’d need to move to a state like Texas, Ohio, or Pennsylvania where deregulated markets let consumers shop for competitive supply rates.
Florida Business Electricity Rates
Florida’s commercial electricity rate of 11.38¢/kWh is well below the national average, making the state attractive for businesses with significant electricity needs. Combined with no state income tax, Florida’s energy costs are a key factor in its economic competitiveness.
Tourism & Hospitality
Florida’s $100+ billion tourism industry includes Walt Disney World, Universal Studios, cruise ports, and thousands of hotels and resorts. Theme parks alone consume hundreds of millions of kWh annually for rides, lighting, HVAC, and entertainment systems.
Agriculture
Florida is the nation’s largest producer of citrus, tomatoes, and sugarcane. Irrigation systems, cold storage, food processing, and greenhouse operations across Central and South Florida drive substantial electricity demand, particularly during the dry season.
Aerospace & Defense
Cape Canaveral, Kennedy Space Center, and Florida’s growing space industry (SpaceX, Blue Origin, L3Harris) require massive power for launch facilities, manufacturing, and data processing. Military installations including MacDill AFB, NAS Jacksonville, and Eglin AFB are major electricity consumers.
How to Lower Your Florida Electricity Bill
While you can’t switch providers in Florida’s regulated market, the state’s abundant sunshine and utility programs offer real opportunities to cut costs:
Go Solar
Florida ranks third nationally in solar capacity and offers some of the best solar economics in the Southeast. With 230+ sunny days per year, no state sales tax on solar equipment, and the 30% federal ITC, a typical residential solar system pays for itself in 6–8 years. Florida law protects homeowners’ right to install solar panels.
Smart Thermostat Programs
FPL’s On Call program and Duke Energy’s demand response programs offer bill credits in exchange for allowing brief cycling of your AC during peak demand. With AC accounting for 40–50% of Florida electricity bills, upgrading to a high-efficiency SEER 16+ system and setting your thermostat to 78°F can cut cooling costs by 20–30%.
Low-Income Assistance
FPL’s CARE program and Duke Energy’s Share the Light Fund provide bill assistance for qualifying low-income customers. The federal LIHEAP (Low Income Home Energy Assistance Program) also helps Florida residents with heating and cooling costs. Contact your utility or call 211 for eligibility details.
Frequently Asked Questions About Florida Electricity
What is the average electricity rate in Florida?
Florida’s average residential electricity rate is 15.54¢/kWh as of April 2026—approximately 14% below the national average of 18.05¢/kWh. Commercial rates average 11.38¢/kWh. Florida benefits from low-cost natural gas generation and efficient utility operations.
Is Florida a deregulated electricity state?
No. Florida is a regulated electricity market. Your utility is determined by your address, and you cannot choose your electricity provider. The Florida Public Service Commission (PSC) oversees rate-setting for the state’s investor-owned utilities. States like Texas, Ohio, and Pennsylvania offer deregulated markets where consumers can shop for competitive rates.
Who are the major electric utilities in Florida?
FPL (Florida Power & Light) serves ~5.7 million customers across eastern and southern Florida. Duke Energy Florida serves ~1.9 million in central and northern Florida. Tampa Electric (TECO) serves ~800,000 in the Tampa Bay area. Municipal utilities include JEA (Jacksonville, ~500,000 customers) and OUC (Orlando).
Why are Florida electricity rates below the national average?
Florida benefits from low-cost natural gas (which fuels ~70% of generation), significant nuclear baseload capacity, rapidly growing solar generation, efficient utility operations (FPL has among the lowest costs of any major U.S. utility), and no state income tax that might require cross-subsidization from utility revenues.
What is the average monthly electric bill in Florida?
The average Florida household pays approximately $165–$175/month for electricity. While per-kWh rates are 14% below the national average, Floridians use significantly more electricity (~1,100 kWh/month) than the national average due to heavy air conditioning demand during the state’s long, hot, humid summers.
How do hurricanes affect Florida electricity bills?
When hurricanes damage utility infrastructure, the Florida PSC allows utilities to recover storm restoration costs through temporary surcharges. These can add $5–15/month to bills for 12–24 months. Utilities have invested billions in storm hardening (stronger poles, underground lines) to reduce future restoration costs and speed up power restoration.
Does Florida have net metering for solar?
Yes. Florida currently offers net metering at the retail rate for residential solar customers, making it one of the better states for solar economics. Combined with 230+ sunny days per year, no state sales tax on solar equipment, and the 30% federal ITC, rooftop solar pays for itself in 6–8 years for most Florida homeowners.
How do I report a power outage in Florida?
FPL: 800-468-8243 or fpl.com. Duke Energy Florida: 800-228-8485 or duke-energy.com. Tampa Electric: 888-223-0800 or tampaelectric.com. JEA: 904-665-6000 or jea.com. All utilities offer outage maps, mobile apps, and text-based outage reporting.
About this Data
Rate data is sourced from the U.S. Energy Information Administration (EIA), the Florida Public Service Commission (PSC), Florida Power & Light, Duke Energy Florida, Tampa Electric, JEA, and the ElectricChoice.com electric rate marketplace. Last data refresh: April 2026.
