Small ‘power cost adjustment’ approved for LCEC
The LCEC Board of Trustees has approved a power cost adjustment that will be implemented beginning Jan. 1.
The new PCA will result in an increase of 3.8 percent on the average residential bill, officials said. It is the result of rising purchased power costs passed on from power supplier Seminole Electric Cooperative.
Although some fuel costs, such as natural gas, have decreased, Seminole relies predominantly on coal for power generation. Coal prices and related transportation costs have increased significantly over the past year.
PCA charges are determined after consideration of projected costs for purchased power. There are no margins (profit) earned on this portion of the customer bill which makes up more than 70 percent of LCEC expenses.
Even with the power cost adjustment, LCEC rates remain among the lowest in the state, according to a statement from LCEC released Monday.
LCEC customers have only seen two base rate increases over the past 25 years. The base rate is the portion of the bill that the company is able to manage through efficiencies and a close watch on the bottom line.
Rates for residential customers with average usage of 1,200 kWh, starting in January 2009 are:
* LCEC: Based on the new PCA, the total monthly electric bill for residential customers using 1,200 kWh will increase from the current charge of $132.13 to $137.17.
* Progress Energy Florida, Inc.: Based on the new fuel charges, the total monthly electric bill for residential customers using 1,200 kWh will increase from the current charge of $131.79 to $163.72.
* Tampa Electric Company: Based on the new fuel charges, the total monthly electric bill for residential customers using 1,200 kWh will increase from the current charge of $132.12 to $150.57.
* Florida Power and Light: Based on proposed new fuel charges, the total monthly electric bill for residential customers using 1,200 kWh will change from the current charge of $132.56 to $131.14.
Established in 1940, Lee County Electric Cooperative, Inc. (LCEC) is a not-for-profit electric distribution cooperative serving Cape Coral, North Fort Myers, Marco Island, Sanibel and Captiva Islands, Pine Island, Everglades City, Immokalee, Ave Maria, and parts of Lehigh Acres.
LCEC is a major contributor to the local economy as one of the largest employers in Lee County with more than 400 employees and by its support of many local agencies through charitable giving and volunteerism programs, including the United Way, American Heart Association, Habitat for Humanity, Junior Achievement and local school districts. People. Power. Possibilities. Delivering the Power that Energizes our Community.
Learn more about LCEC online at www.lcec.net.