The Lakeland City Commission voted to increase the fuel charge for Lakeland Electric customers 50 cents per 1,000 kWh effective for meters read on or after October 1, 2012. The new fuel charge will be $42.80 per 1,000 kWh.
After listening to a presentation at September 17, 2012 Utility Committee meeting, staff recommended an increase to the current fuel charge based on the slight increases for natural gas in both the New York Mercantile Exchange and the Henry Hub Spot Market. Forecasters have implied that some wells have come off line, causing the natural gas market to increase slightly.
The Utility Committee also voted unanimously to reduce the environmental compliance charge from $2.456 per 1,000 kWh to $2.348 per 1,000 kWh. This vote was also passed by the City Commission during the September 17, 2012 meeting. The environmental charge is calculated in the base charge below.
RESIDENTIAL RATES BASED ON 1,000 kWh
Current New Rates – Effective October 1, 2012
Base Charge $ 59.42 $ 59.31 (includes environmental decrease)
Fuel Charge $ 42.30 $ 42.80 (includes fuel increase)
TOTAL: $101.72 $102.11
Environmental compliance charges are directly related to federal and state initiatives regarding clean air and water mandates. Most of the expenses are related to energy production and include air emission controls, water quality monitoring and capital spending for equipment necessary to comply with the Environmental Protection Agency’s Clean Air Act.
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.
Based on Florida Municipal Electric Association data, Lakeland Electric’s residential rates after the October 1st fuel charge increase will be the third lowest in the state for residential customers as well as the third lowest in Florida for all of the commercial rate classes.
Visit www.lakelandelectric.com for more information and to see a residential rate comparison.