Data centers serve as critical IT infrastructure for everything from shopping apps and streaming services to email and artificial intelligence. Florida lawmakers and regulators are preparing for a potential influx of data centers as demand for these online services grows.

This is an edited transcript of a conversation with FPL President Scott Bores on how FPL plans to serve any data center growth in Florida while protecting regular Floridians.

Scott, we’ve all seen the headlines from other states about data centers driving up electric bills. The Florida Public Service Commission (PSC) recently approved new rates for Florida Power & Light Company, and some folks have suggested the reason you went through a rate case was because of data centers. Is that true?

No. FPL went through the rate case process because our earlier rate agreement was due to conclude at the end of 2025 and reliably serving our customers takes continued investment. Our approved agreement enables us to continue to make smart investments to reliably power Florida’s growth while keeping customer bills low – well below the national average.

The truth is large-scale data centers haven’t quite made it to Florida yet. But we have a friendly business environment, low electricity rates and excellent reliability – so we know it’s only a matter of time. At FPL, it is our job and our legal obligation to deliver electricity to any and all customers who move into our service area. That means we must be proactive and ready. And it’s why, as part of our rate case, we created special rates that apply to all large load customers, including data centers. These rates are designed to shield our existing customers from subsidizing these large load projects.

You mentioned news stories about data centers in other states putting upward pressure on residential electric bills. We don’t want to read headlines like that here – that’s why we designed our rates with new consumer protections to ensure we never do. We carefully studied utilities in states that have seen significant data center growth so we could learn from their experience. That was the driving force behind our new large load rates, which are the most thoughtful and customer-protective in the nation.

How do these new large load rates work?

We believe Florida can be home to responsible technology growth without raising electric bills for our customers.

The idea is straightforward: The cost-causer (in this case, the data center) should foot the bill – not the general body of customers.

Data centers use a lot of power. FPL will need to build new power generation and battery storage to serve them. This is infrastructure we wouldn’t otherwise build were it not for data centers. So, it makes sense that the data centers are on the hook for those costs.

Our new large load rates feature a number of consumer protections, including an Incremental Generation Charge (IGC). That charge ensures the large load customer funds 100% of the cost of new power generation needed to serve their data center project.

So that covers the new power generation, but what about the power these data centers use on an ongoing basis once their project is up and running?

They pay for the power they use and are subject to a minimum bill should they end up using less than they signed up for.

This is the take-or-pay demand charge?

Correct. The data center signs up for a certain amount of power. Once the infrastructure is built, FPL expects the data center to use that amount of power every month because FPL incurs fixed costs to maintain that capacity. The minimum take-or-pay demand charge ensures the data center pays for that reserved capacity – even if they don’t end up needing all of it.

You mentioned there are a number of customer protections in the new rates. What else?

If a data center wants to be served by FPL, there are several steps that must take place before FPL can serve that project. The large load customer must fund an engineering study that evaluates the project's scope and feasibility, determines the cost to connect to the grid, and when FPL can meet the requested demand and in-service date. To reserve capacity on our system, the customer must meet strict collateral requirements tied to their credit. They must agree to a minimum contract term of 20 years from their in-service date. And they must be able to pay for 100% of the cost of new power generation needed to serve their project.

Once in service, they are not only subject to the minimum bill we just discussed – they are also subject to an early exit fee.

All these requirements combine to make up the strictest consumer protections in America as it relates to data centers. And they ensure that the projects that do move forward are only the best ones from the most mature and credit-worthy companies that intend to stay in Florida, providing tax benefits for communities and jobs for many years.

Scott, thank you very much.

Thank you.