Below you’ll find a memo sent out from the city today. It bears the Truth in Advertising title of “LAKELAND ELECTRIC FUEL CHARGE DECREASE EFFECTIVE OCTOBER 1ST.” However, while that fact is true, other charges conspire to make that first 1000 kwh of electricity more expensive after the 1st than it was in September.
Every account must pay a fate “base rate” before fuel charges kick in. That base rate will go up $1.04 a month to “to better reflect the true cost of federal and state clean air compliance mandates.” It looks like the city also added $0.02 with no mention why in the memo.
As with many electric companies, the fuel charge is supposed to “the actual costs for fuel used to generate the amount of electricity used within your residence.” The city believes with current fuel costs it will cost them $54.25 to generate that 1,000 kwh of fuel. That’s $0.50 less than in September.
Lakeland Electric uses a tier system that adjusts fuel charges up for any of kwh of electricity used over 1,000 in a billing “month.” These is a higher rate for that amount from 1,001 to 1,500 and another rate increase for the amount used over 1,500 kwh.
On your bill, Lakeland Electric does not list taxes, Environmental Compliance Charge, and other charges separately. Also, while the memo below lists “environmental compliance charge” as $1.67 in September. The bill for 9/17/09 lists “Environmental Charges of $2.84.” The memo doesn’t explain what other environmental charges constitutive the other $1.17.
LAKELAND ELECTRIC FUEL CHARGE WILL DECREASE EFFECTIVE OCTOBER 1ST
LAKELAND, FL (September 21, 2009) – The Lakeland City Commission voted to decrease the fuel charge for Lakeland Electric customers. The current fuel charge for residential customers is $54.75 per 1,000 kWh and effective October 1, 2009 the charge will decrease to $54.25 per 1,000 kWh.
After listening to a staff presentation at the September 21, 2009 Utility Committee Meeting, the Lakeland Electric Utility Committee recommended to reduce the current fuel charge. The City Commission reconvened and voted for the decrease.
RESIDENTIAL RATES BASED ON 1,000 kWh
Current Effective October 1, 2009
Base Rate* $58.49 $59.55
*Includes Environmental Compliance Charge
Fuel Charge $54.75 $54.25
TOTAL: $113.24 $113.80
The City Commission also voted to adjust the environmental charge to better reflect the true cost of federal and state clean air compliance mandates. This charge consists of all plans made by the utility to meet environmental compliance. It includes projects such as environmental permitting and lower emission initiatives. The environmental compliance charge increased from $1.67 to $2.71 and is included in all base charges.
With a decrease in the fuel charge and the adjustment to the environmental compliance charge, Lakeland Electric rates will be ranked 3rd lowest out of the 37 utilities serving Florida residential customers and the lowest ranked in Florida for large commercial customers.
Lakeland Electric bills are broken out for customer convenience to show the base charge and the fuel charge. 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.