Lakeland Electric to Reduce Fuel Charge Next Quarter - Effective April 1, 2020

Posted By: Garnie Holmes Association News ,

The Lakeland City Commission voted today to lower the electric fuel charge for Lakeland Electric customers for the next fiscal quarter (April/May/June 2020). After giving a presentation Monday, March 2 at the Utility Committee meeting, staff recommended lowering the fuel charge by $5.75 from $32.75 to $27.00. The lower rate was made possible by lower natural gas prices than expected, unusually warm winter weather, and an effort to expedite a return to our target fuel reserve balance.

The fuel charge will change to 2.7¢ per kilowatt-hour (kWh). Multiplying the fuel charge by 1,000 kWh, the amount an average residential home utilizes in a month, the cost equals $27.00 per 1,000 kWh for fuel.

The reduction of the fuel charge will help our customers keep their electric costs low and is Lakeland Electric’s lowest fuel rate in more than 17 years. In fact, Lakeland Electric continues to have some of the lowest electric rates in the state. As with most electric utilities that generate their own power, the cost of fuel is passed directly to customers. This makes the fuel charge an important part of Lakeland Electric’s ongoing effort to keep our customer’s electric costs low. 

Residential Rates Based on 1,000 kWh

Current 

Rates – Effective April 2020

Base Charge* (see below for a breakdown of charges)

$64.77

$64.77

Fuel Charge             

$32.75

$27.00

TOTAL:

$97.52

$91.77

 

 *Base Charge

 

Customer Charge   

$  11.00/month

 

Energy & Smart Grid Charges  

$50.99/1000 kWh

 

Environmental Charge     

$  2.78/1000 kWh