Lakeland Electric is holding three public meetings this week on a proposed rate increase that would add about $2.50 a month to the average home customer’s utility bill. An in-person meeting is scheduled for 5:30 p.m. Tuesday at the RP Funding Center. In addition, online-only meetings are scheduled for tonight and Thursday.
Utility staffers will explain the reasons for the rate change and take comment at the meetings. They have set up a web page to explain the new rates proposed to take effect in October.
The online “virtual meetings” are scheduled for 5:30 p.m. tonight and Thursday. You can sign in on this page, which includes links for access the meeting via web browsers and mobile devices.
Lakeland Electric asks that participants RSVP for any of the three meetings.
- Rate background and short video from Lakeland Electric
- RSVP for this week’s meetings
- Sign into online virtual meetings tonight and Thursday
- Video: Monday’s public meeting
- Video: Utility Committee briefings – June 18 | June 4 | May 21 | May 7 (City Commission business retreat)
- Ledger coverage
The part of the electric rate that would be increased is called the base rate. It pays for facility improvements and operating costs, but not fuel.
Before the increase can take effect, it must be passed first by the city’s Utility Committee and then by the City Commission following a public hearing. Tentatively, the Utility Committee will decide on the rate increase July 2 at a 1 p.m. meeting and the City Commission will make its decision Aug. 6 at a 10 a.m. meeting.
The last increase in the base rate went into effect in February 2015.
The proposed rate is 3 percent above the current base rate and would add $2.43 to the base rate for a residential customer using 1,200 kilowatt hours a month, which is considered an average amount, according to Lakeland Electric.
That would raise the total electric bill about 1.8 percent. For the home customer using 1,200 kilowatt hours a month, that would mean an electric bill of $131.89 for customers within city limits and $140.61 outside city limits.
Utility managers give several reasons the increase is needed. Among them:
- Expenses have grown around 1.4 percent per year since 2015, which they note is less than the inflation rate.
- Investment in infrastructure have averaged about $35 million a year, but should be closer to $39 million to match the rate of depreciation. “This increased spending on capital is a cost we know we will have to undertake over the next three to five years to address our aging infrastructure,” the utility says in its online FAQ.
Lakeland Electric’s rate proposal also includes changes to some of their alternative residential rates and to commercial and industrial rates.
Here is our Twitter coverage of last week’s Utility Committee meeting, followed by the slides about the rates presented at that meeting:
Right now at City Hall: @mylkldelectric staff is reviewing their recommendations for increasing electric rates. Watch live at https://t.co/kFv7mrzLdD #lkld pic.twitter.com/tdcmVgZ4Mg
— Lkld Now (@LkldNow) June 18, 2018
Lakeland Electric has a three-tier structure for standard residential rates: “The more you use, the more you pay.” #lkld pic.twitter.com/lCNGBL5aGm
— Lkld Now (@LkldNow) June 18, 2018
One alternate for @mylkldelectric customers is the Residential Demand rate, designed for customers who want to save through efficiency. #lkld pic.twitter.com/cOQCKOikQA
— Lkld Now (@LkldNow) June 18, 2018
Typical demand customer who’s not on solar would pay $69.75/month, up from $67.75. #lkld pic.twitter.com/3rYFF5Kyvq
— Lkld Now (@LkldNow) June 18, 2018
Here’s a look at the rate structure for solar customers. #lkld pic.twitter.com/SMVyaJvV4m
— Lkld Now (@LkldNow) June 18, 2018
Shift-to-save billing also incentivizes efficiency by getting customers to use energy during non-peak periods. @mylkldelectric is proposing changes in the time periods to match those approved by Fla. Public Service Commission. #lkld pic.twitter.com/hvG4gohoV1
— Lkld Now (@LkldNow) June 18, 2018
@mylkldelectric staff says proposed shift-to-save changes are revenue neutral. #lkld pic.twitter.com/O27M98Ddqu
— Lkld Now (@LkldNow) June 18, 2018
June 18 rate presentation:
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