Fitch Ratings has rated the long-term default rating ofFlorida Power & Light Co.at A with a stable outlook.
The rating follows a settlement between the subsidiary andthree intervenors in its base rate proceeding to lower proposed rate increasesand return on equity from its original request, but including a provision toadd more than 1 GW of utility-scale solar. Fitch views the settlement asconstructive and supportive of FPL's credit quality, according to an Oct. 7release.
Under the settlement, FPL would receive a retail baserevenue increase of $400 million beginning in 2017, $211 million beginning in2018 and $200 million when its planned 1,723-MW combined-cycle comes online, expected in mid-2019. FPL would also see the midpoint of itsallowed return on equity rise slightly to 10.55%, within a range of 9.60% to11.60%.