Lakeland Electric to increase fuel charge next quarter

EFFECTIVE July 1, 2022

LAKELAND, Fla. (June 7, 2022) - The Lakeland City Commission voted Monday, June 6, to increase the electric fuel charge for Lakeland Electric customers for the next fiscal quarter (July/August/September 2022). After giving a presentation at the Utility Committee meeting on Friday, June 3, staff recommended increasing the fuel charge by $20.00 per 1,000 kWh due to escalating natural gas market prices.

The fuel charge will change to 6¢ per kWh. Multiplying the fuel charge by 1,000 kWh, the amount an average residential home utilizes in a month, the cost equals $60.00 per 1,000 kWh for fuel.

The cost of fuel is passed directly to customers with no markup. Even with the change, Lakeland Electric will continue to have some of the lowest electric rates in the state.

Rising fuel costs are a national issue impacting everyone, including utilities. "We are using every strategy we know of to keep customers' costs low," said Tory Bombard, Lakeland Electric Fuels Manager, on Friday.

Lakeland Electric's financial strategies of natural gas hedging, baseload contracts, and fuel reserve fund have shielded customers from fuel rate increases so far this year. Still, the significant price increase in the open market and supply chain issues have grown beyond our ability to absorb.

This is Lakeland Electric's first fuel charge increase in 15 months.

The most significant factors for residential customers' electric bills are air conditioners and hot water heaters. Setting thermostats to 78° during the summer and using a hot water heater timer can save customers over 17% on their bill each month. Visit LakelandElectric.com for more savings tips.