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The Lakeland Electric Building along scenic Lake Mirror in 2023. | Kimberly C. Moore, LkldNow
2-minute read
Lakeland Electric customers will see small increases on their monthly bills starting Sept. 1 as the utility adjusts for higher fuel costs and environmental projects.
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.”
In 2024, the environmental change was lowered because the city collected more than it spent.
“When we do the budget, we actually come to zero,” Strauss explained. “We see how much we have to recover to make revenue and expenses balance.”
Insight Polk examines community conditions and solutions in six target areas from UCIndicators.org: economic & employment opportunity, education, housing, food security, transportation & infrastructure, and quality of life.
LkldNow’s Insight Polk independent reporting is made possible by the United Community Indicators Project with funding by GiveWell Community Foundation & United Way of Central Florida. All editorial decisions are made by LkldNow.
Kayla Borg is a Lakeland native and graduate of Western Carolina University, where she earned her degree in English and film production. She began her media career in Atlanta at CNN, quickly rising from production assistant editor to technical director/editor, leading live broadcasts alongside field reporters. Since then, she’s worked in education, instructional design and independent filmmaking.
Unexpected Shortfalls?? Lakeland Electric. It’s always something with you all.