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Fuel Charge Increase Effective August 2014



LAKELAND, FL (July 7, 2014) - The Lakeland City Commission voted to increase the fuel charge for Lakeland Electric customers $2.50 cents per 1,000 kWh effective for meters read on or after August 1, 2014.  The new fuel charge will be $45.85 per 1,000 kWh. 


After listening to a presentation at the Monday, July 7th Utility Committee meeting, staff recommended an increase to the current fuel charge based on fuel forecasts and the need to purchase power while the base load units have been down for maintenance.  The City Commission voted 6-1 for the increase.



  Current   New Rates – Effective August 1, 2014   
Base Charge $  59.64   $  59.64 (includes environmental charges)  
Fuel Charge $  43.35   $  45.85 (includes fuel increase)  
TOTAL:   $102.99  $105.49  


The base rate includes environmental compliance charges that 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 charge to customers. 


Based on Florida Municipal Electric Association data, Lakeland Electric’s residential rates after the August 1, 2014 fuel charge increase will continue to be  some of the lowest in the state.