Published: Sep 27, 2012 6:16 AM EDT

TALLAHASSEE, Fla. (AP) - State regulators are hearing argument over a proposed settlement that would increase Florida Power & Light Co.'s rates.
 
The Public Service Commission is beginning the hearing Thursday, but it may extend into Friday.
 
FPL, the state's largest electric utility, initially asked to increase base rates by $690.4 million a year.
 
It then reached proposed settlement with groups representing industrial, health care and federal agency customers. The settlement, though, is opposed by other consumer groups and Public Counsel J.R. Kelly, who represents all customers.
 
Kelly contends the deal eventually would exceed FPL's original request through future base rate adjustments as new power plants come on line in 2014 and 2016. The portion going into effect next year, though, would be reduced to $378 million.