Florida Power & Light (FPL), a subsidiary of NextEra Energy, one the nation’s largest utilities, may have come to a compromise on the historic $10 billion rate hike it was recently seeking from consumers. This proposal and subsequent proposed settlement continue to raise concerns among consumer advocates, who argue that it would disproportionately impact Florida residents, particularly those on fixed incomes.
Circular Transactions Between Nonprofits and FPL
A significant aspect of the controversy involves the relationship between FPL and various nonprofit organizations. An investigation by the Tampa Bay Times revealed that at least 49 individuals who testified in favor of the rate hike had financial ties to FPL, including donations or contracts, often without disclosure.
For example, according to The Tampa Bay Times, “Deborah Koch, executive director of the American Red Cross’ Miami chapter, called in to a hearing to support the hikes, praising the company’s charity work and its customer service. In an email to the Times, she said she was attending the hearing as an individual and not as a representative of the Red Cross.” According to the Times, “The nonprofit received more than $230,000 in donations from the charitable arm of Florida Power & Light’s parent company in 2019, the most recent data publicly available.”
Critics argue that this setup amounts to “quid pro quo” support, where nonprofits and business leaders receive financial backing from FPL in exchange for public endorsements of its rate increase. These circular transactions have raised questions about the transparency and ethics of FPL’s lobbying efforts. By channeling funds through nonprofit organizations, FPL may be circumventing direct regulations on corporate political spending, potentially influencing public opinion and regulatory decisions without adequate oversight.
CharityWatch Weighs In
Laurie Styron, CEO of CharityWatch, has expressed concerns regarding the financial transactions between Florida Power & Light (FPL) and certain nonprofit organizations that support the utility’s rate hike proposals. In a statement to the Tampa Bay Times, Styron noted, “Whether or not a rule is being strictly broken, it’s clear that the spirit of the rules are not being followed.” She continued, “Since the foundation doesn’t provide a detailed description of these circular transactions, it’s difficult for the public to judge whether or not the charitable purpose is being met or to quantify the for-profit’s accomplishments.” These comments highlight Styron’s belief that while legal boundaries may not have been crossed, the ethical standards governing such transactions were not upheld.
Styron’s statement underscores the importance of transparency and accountability in nonprofit operations, especially when financial dealings involve entities like FPL that have a direct impact on public utility rates. Her critique suggests that the relationships between these nonprofits and FPL may undermine public trust in charitable organizations and their advocacy efforts.
Proposed Settlement
In response to concerns from consumer advocates, FPL and various stakeholders filed a proposed settlement in August 2025. The settlement still needs to undergo a formal review and approval process by the Florida Public Service Commission (PSC), which is scheduled to occur in October 2025. This agreement would reduce the original request to base-rate increases of $945 million in 2026 and $766 million in 2027, according to CBS News. Consumer groups subsequently filed a settlement described as a “counter proposal” that would result in increases of $867 million in 2026 and $403 million in 2027, also according to CBS News.
Will you help CharityWatch continue our important work?
As the only independent charity watchdog organization in the United States, CharityWatch relies on your support to fund our in-depth research and analysis in order to bring you the unbiased charity ratings and other information you rely on to help you make more informed giving decisions. We are not directly or indirectly funded by nonprofit industry interests.
We hope you will consider making a donation today so that we can continue to speak openly and critically and call out wrongdoing when we see it without concern for special interests cutting our funding. CharityWatch is a small organization and your donations are noticed, needed, and greatly appreciated. Thank you for giving wisely!
