The Lakeland City Commission in a specially called Commission Meeting voted to increase the fuel charge for Lakeland Electric customers $3.70 per 1,000 kWh effective for meters read on or after July 2, 2012. The new fuel charge will be $42.30 per 1,000 kWh. Starting July 2nd Lakeland Electric residential customers will pay $101.72 for 1,000 kWh of electricity.
After listening to a staff presentation at the specially called City Commission meeting, staff recommended an increase to the current fuel charge based on an upcoming project that will hinder Lakeland Electric from purchasing power from the Florida Municipal Power Pool (FMPP). The 30 year old main feed that connects Lakeland Electric with Orlando Utilities will be replaced causing Lakeland Electric to generate the base load from natural gas and coal. Current natural gas prices are very favorable but coal costs and the inability to participate in the FMPP are the cause for the fuel rate increase.
RESIDENTIAL RATES BASED ON 1,000 kWh
Current New Rates – Effective July 2, 2012
Base Rate $59.42 $ 59.42
Fuel Charge $38.60 $ 42.30
TOTAL: $98.02 $101.72
Based on Florida Municipal Electric Association data, Lakeland Electric’s residential rates after the July 2nd fuel increase will be the second lowest in the state for residential customers as well as the second lowest in Florida for all of the commercial rate classes.
Lakeland Electric bills are broken out for customer convenience in detail to show the base charge, fuel charge and appropriate taxes and service charges. The fuel charge on a utility bill is exactly that, the actual costs for fuel used to generate the amount of electricity used within your residence. Most utilities subscribe to the same billing practice and break out the base rate and the fuel charge for their customers. There is no mark-up in fuel. In fact, fuel is a straight pass-through to customers.
Visit www.lakelandelectric.com for more information and to see a residential rate comparison.