Florida Democratic U.S. Representative Kathy Castor has re-introduced a bill prohibiting utility companies from using ratepayer money to fund political interests. Castor’s bill, called the “Ethics in Energy Act,” was first introduced in July 2023 but never advanced to a House vote. Now, Castor’s bill has a second chance. But will recent developments dash the bill’s chances once again?
Reintroduction of the bill coincides with a hearing Monday (Aug. 11) when the Florida Public Service Commission (PSC) is expected to weigh in on the rate hike proposed by the Florida Power and Light (FPL), Florida’s largest utility company – a hike summing $9 billion – the highest in U.S. history – spread over the next four years.
FPL claims that the rate hike is necessary to support grid resilience, reliability, continued population growth and energy diversification. Part of the $9 billion proposal includes investing in solar energy and battery storage projects. According to FPL representatives, despite the rate hike, Florida residents’ energy bills will remain lower than the national average.
Monday’s hearing will be a contentious one – and not only because of FPL’s hefty proposal. FPL has been under scrutiny since an investigation linked FPL to a non-profit that secretly funded a Democrat as a no-party, “spoiler candidate” in the 2018 Senate race in Gainesville to swing the election to the GOP incumbent. In 2022, Castor called for the U.S. Department of Justice to investigate FPL, but no formal investigation resulted.
“Electric bills should pay for electricity – not political tricks to hijack elections, mislead voters and steal elections,” she said. “Florida families are tired of being taken advantage of by big utility companies that continue to raise rates while using their hard-earned dollars to bankroll deceitful political activities and block access to cleaner, cheaper energy.”
Castor’s timing is strategic. Reintroducing the bill simultaneously with FPL’s contentious hearing could garner the needed regulatory attention and congressional support to move the bill through Congress – more so than when she initially proposed it in 2023, following the allegations against FPL.
If the bill is passed, utilities nationwide will no longer be able to either directly or indirectly use customer payments to fund political activities. Utility companies would be required to file a detailed report disclosing financial activities, and the Florida Public Commission would monitor and investigate compliance.
As of Aug. 8, FPL had motioned for the hearing to be paused and stated that they have a “settlement in principle” to be finalized by Aug 20. In the news release, FPL President and CEO Armando Pimentel said “We are pleased to have reached an agreement in principle with key stakeholders. A settlement would provide a win for our customers and the state of Florida. We appreciate the constructive engagement of key intervenors.”
The PSC is expected to decide on FPL’s motion Monday. A public hearing will still occur regardless, but the proposed settlement soothes the tone ahead of public discussion – that may stifle the urgency of Castor’s strategic reintroduction of the bill, dimming its spotlight once again.