The Florida Public Service Commission approved a $75.5 million base-rate increase for Florida Power & Light Wednesday, all but rejecting the utility's request for a record hike of $1.27 billion. The approved increase is likely to add just pennies to a typical customer's monthly bill.

"The commission worked hard to decide this case on the merits in a fair and impartial manner," said Commissioner Nathan Skop. "The reality is that FPL is going to have to make due in these difficult economic times."

J.R. Kelly of the Office of Public Counsel — the state's advocate for utility customers — said the decision is a win for consumers. "The evidence spoke for itself and I am very, very proud on behalf of ratepayers that the commission recognized that," said Kelly, who had recommended FPL reduce rates by $364 million.

In response to the decision, FPL announced it would halt $10 billion in projects, including plans to build two new nuclear reactors at the Turkey Point plant near Miami and upgrade two new generators.

Commissioners noted that if the economy improves, FPL can ask to increase rates as early as next year. PSC spokeswoman Cindy Muir said FPL can ask the commission to reconsider the decision, then appeal to the courts if needed. FPL officials declined to say what the utility might do next.

FPL had sought to boost base rates by $1.27 billion — a hike that would have increased monthly bills for a residential customer using 1,000 kilowatt-hours by $8.85 this year and an additional increase of $2.72 next year. FPL had argued declining fuel costs this year would have helped offset the impact on customers.

The PSC vote capped a 10-month process of evaluating FPL's base rates for the first time since 1985. The request drew fierce opposition from consumer advocates, the Attorney General's Office and groups representing businesses and hospitals. Critics said FPL employees attempted to influence the process outside of regulatory proceedings: meeting with utility employees over meals and at a party, exchanging phone calls and instant messages with utility officials and recruiting supporters to speak at customer forums.

State law bars commissioners from communicating with employees from groups they regulate on rate cases without other stakeholders such as consumer advocates present. The commission is considering expanding the restriction to other commission employees and to procedural and other topics. It is also considering a recommendation to lawmakers that fines for commissioners who violate the law be extended to employees from groups they regulate.

Gov. Charlie Crist had opposed the proposed rate hike and reshaped the commission by appointing two outsiders to replace two outgoing commissioners. This week, the newly reconstituted commission rejected Progress Energy Florida's request for a nearly $500 million base rate hike.

FPL officials said they didn't try to inappropriate influence the process and wanted the request to be judged on its merits.

"This decision was about politics, not economics, and unfortunately it comes at a time when our state urgently needs jobs and investment," FPL Group Chairman Lew Hay said in a statement.

The commission voted on more than 170 issues related to FPL's request, including several key items.

•Profit margin: The PSC set a limit on profits allowed on FPL shareholders' investment of about 10 percent — much less than the 12.5 percent requested by FPL. The difference requires about $300 million less from customers a year. Commissioner Steve Stevens led the push for a lower margin and Commissioners Lisa Edgar and David Klement said they would have preferred a slightly higher margin for FPL.

•Storm fund: Regulators froze a $215 million fund to help the utility make repairs after a hurricane instead of increasing it by $150 million a year as proposed by FPL. Klement and Edgar voted against this, saying the fund is a form of insurance. "We all carry insurance. Why would you not carry insurance against a hurricane in Florida?" Klement said. But PSC Chairman Nancy Argenziano said it's the wrong time to charge people for "unknown storms in the future."

"What I'm hearing the people say is that we can't handle it right now," she said.

•Depreciation: The panel voted to require FPL to return $895 million to customers over the next four years — money that was collected to pay for power plants and equipment ahead of schedule. Kelly's office had pushed for that while FPL wanted 22 years to return the money.

•Executive pay: The PSC required FPL to reduce costs customers pay for employees' salaries and benefits by $50 million. Skop said he thinks FPL spends too much on marketing and communication based on his review of the top employees' salaries. He suggested shareholders help pay more of those costs because he said the utility didn't prove those costs benefit customers. "Electricity pretty much sells itself," Skop said, adding that the company should consider using more of its resources to deal with customers' problems with service.

The PSC also rejected FPL's request to increase service fees and receive what is essentially automatic approval to charge customers $182 million a year for a new power plant in western Palm Beach County.

Julie Patel of the (Fort Lauderdale) Sun Sentinel can be reached at 954-356-4667 or jpatel@sunsentinel.com.