The Lakeland City Commission unanimously approved a series of annual base rate increases for Lakeland Electric that will total 15.87% over four years

Key Details

• Start Date: The first base rate adjustment takes effect October 1, 2026, with subsequent adjustments occurring every October through 2029.
• Annual Pace: Base rates will go up by 3.75% per year.
• Customer Cost Breakdown:
  • Residential: For the average residential customer using ~1,178 kWh/month, the initial phase adds about $2.83 per month to the base bill. To shield fixed-income and low-use households, rate increases on the first 1,000 kWh are capped at around 2% per year.
  • Commercial: Impact varies depending on size, ranging from ~10% over four years for large commercial users up to ~20% for small businesses.
  • County Surcharge: Unincorporated Polk County customers buying power from Lakeland Electric will continue to pay a 10% surcharge (roughly 25–30 cents more per month than in-city residents).

Why Is the Rate Increasing?

According to a formal Cost of Service Study conducted by the utility, operating expenses have risen significantly:

• Increased costs for essential equipment, maintenance, transformers, and raw materials.
• Rising labor and system maintenance expenses.
• Grid modernization to improve reliability and better withstand severe weather events.

Note on Utility Bills: Your electric bill is divided into base rates, fuel charges, and taxes/fees. This decision only impacts the base rate. Fuel charges fluctuate separately based on global market conditions and natural gas prices