Breaking down the numbers
- Fuel rate: Rising from $41.50 to $43.50 per megawatt hour
- Adds to $2.40/month for a typical household using 1,200 kWh
- Effective Sept. 1, 2025
- Environmental compliance charge: From $1.17 to $1.85 per megawatt hour
- Adds about $0.81/month
- Effective Oct. 1, pending City Commission approval Sept. 15
Together, the increases will add about $3.20/month to the average customer’s bill.
Why the increase?
Assistant General Manager of Fiscal Operations at Lakeland Electric, Willem Strauss, explained at an Aug. 29 Utility Committee meeting that the hike is needed to cover new projects and unexpected shortfalls.
Strauss explained that the environmental compliance rate covers costs tied to state and federal regulations. “This rate is separate from the base and fuel rates, and it’s also a separate line item on your electric bill,” Strauss said. “Last year, we reduced the rate. This year, unfortunately, we have to increase it.”
The increase comes from building two new retention ponds at the power plant, a $476,000 shortfall from project delays and flooding, and added costs from new environmental equipment.
FEMA funds could help
Commissioners asked about storm recovery costs. Strauss confirmed that FEMA reimbursements for past hurricanes are still outstanding. “We don’t bring those into account until we actually receive it,” he said. “If FEMA money comes in, the rate will come down.”…