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City files complaint with PSC

By Staff | Mar 16, 2016

After unsuccessful attempts to acquire important financial information needed from LCEC for review of Cape Coral’s expiring 30-year franchise agreement, the city Tuesday filed a complaint with the Florida Public Service Commission seeking relief.

City Council approved moving forward with the filing at their meeting Monday, March 14.

“This action was prompted by LCEC’s refusal to provide financial information that is necessary to conduct our due diligence to evaluate our options related to electric service,” said City Manager John Szerlag.

The complaint asks the PSC to order LCEC to conduct a fully allocated cost of service analysis for their rate structure and rate design to determine if those rates are fair, just, reasonable and non-discriminatory against the City of Cape Coral’s residents and businesses.

“We already know our residents pay well above $30 million more each year (17 percent) for the same electricity as our neighbors across the river served by FPL,” said Szerlag. “Our residents also should know whether or not they are being charged higher electric rates to subsidize less-populated LCEC service areas.”

As of 2013, Cape Coral had 746 customers per square mile within its municipal boundaries, which represent only 5 percent of LCEC’s 2,084 square miles of service territory. The remaining 1,965 square miles of LCEC’s service territory had only 55 customers per square mile. The complaint filed with the PSC asserts that LCEC’s current rate structure discriminates against the City of Cape Coral and all residents and businesses within the City’s municipal boundaries.

Source: City of Cape Coral