The News Service of Florida reported that Sen. Don Gaetz, R-Niceville, has revived a proposal that would make changes at the Florida Public Service Commission, including expanding the utility-regulatory panel from five to seven members.
Gaetz on Tuesday filed the proposal (SB 126) for consideration during the 2026 legislative session, which will start in January. In addition to expanding the size of the commission, Gaetz wants to require one member to be a certified public accountant and another one a chartered financial analyst. Also, the bill would take steps such as restricting returns on equity — a closely watched measure of profitability — that utilities would be allowed to earn. The bill would bar utilities from earning returns on equity that exceed the national average for comparable utilities.
Key Provisions
Commission Structure: Expands the Commission from five to seven members, requiring one certified public accountant and one chartered financial analyst among commissioners.
Enhanced Transparency: Mandates that all Commission orders contain adequate support and detailed rationale for conclusions, including specific facts and factors justifying decisions. Settlement agreements must include reasoned explanations and discussion of major elements.
Rate Controls: Caps utility return on equity at the national average for comparable utilities to protect Florida households from excessive rates. The Commission must establish a schedule governing when utilities can submit rate change requests.
Annual Reporting: Requires comprehensive annual reports to the Governor and Legislature by March 1, including:
- Economic analyses of rate changes and equity returns
- Comparison of rate-setting models with federal and other state agencies
- Detailed executive compensation information for utility companies and parent entities
- Assessment of long-term impacts on customers
- Benchmarking against utilities in other states
Effective Date: July 1, 2026
Been Here Before
During the 2025 session, Gaetz partnered with Sen. Jennifer Bradley, Chair of the Regulated Industries Committee, to introduce SB 354—legislation aimed at transforming how Florida’s Public Service Commission (PSC) operates and makes decisions about utility rates.
The bill would have required more transparency for utility companies, requiring them to disclose the cost drivers behind proposed rate increases. In Florida, utility companies operate as government-granted monopolies. Floridians cannot simply switch providers if they’re dissatisfied with service or rates.
- Gaetz told us, “If you’re asking for a rate increase, if you’re asking for the government to mandate a rate increase about which the customers have nothing to say… then if executive compensation is a cost driver, the Public Service Commission needs to know what those costs are.”
SB 354 also proposed that utilities provide a return-on-investment analysis to ensure ratepayers understand the benefits they receive for their investment. Gaetz noted, “Not every dollar pumped into resilience produces a dollar’s worth of results.”
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