Lakeland Electric customers will not see a change in their fuel rates despite decreasing costs for fuel.
Commissioners on Monday to approve keeping a fuel rate of $55 per 1,000 kilowatt-hours of power used effective July 1.
The $55 fuel rate is slightly lower than the rate last summer, when it was $60 per 1,000 kilowatt-hour, but remains above prices in the first half of 2022.
Tory Bombard, LE’s fuel manager, said the rate is less than the utility’s actual expense to purchase fuel in May, which averaged closer to $59.20 per 1,000 kilowatt-hours. Bombard said based on market predictions, she does expect the cost of fuel to gradually decline over the summer months. This will lead the utility to “over recover its costs, adding $9 million to Lakeland Electric’s fuel reserves by November.”
These funds will be used to pay roughly $3.5 million to the Florida Department of Transportation for construction work. Bombard said one of the utility’s gas lines is located in the state’s right-of-way needed for FDOT’s plans to widen State Road 33 near the I-4 interchange. The gas line will be reconnected to the utility’s Lake Parker line, running along the Orlando Utilities Commission’s transmission lines.
“We won’t ever have to worry about moving it again,” Bombard said.
Bombard told commissioners by not changing the utility’s fuel rate, it would avoid a potential rate increase in the future when FDOT’s project begins.
What a deal! $47 mil over budget and one year extension. Wanna bet it’s at least two years and at least $50 mil? Holy Moly let’s count the zero’s. Maybe if the City extends that fine solar farm?? Looks like the City is gonna be buying energy from Orlando Electric for a while. Get ready LE customers, paying those electric bills is gonna get worse. How smart was it to blow up the old plant?