After an electric rate study, the city of Tallahassee professional staff is recommending a 2.5% increase in base electric rates. However, due to a decrease in the price of fuel, the total electric bill for residential customers will see a decrease.
Base rates are the portion of the electric bill that covers the expenses required to produce and deliver electricity. These expenses include salaries, debt service, and routine maintenance.
Base rates are adjusted annually by the Consumer Price Index.
The city staff reports that “a typical residential customer using 1,000 kilowatt-hours will see a monthly bill decrease of 3.3%, from $112.81 to $109.07.”
Also, residential customers who use natural gas will see an approximate 10% decrease in base rates and in their over all bill.
The city staff reports “a typical residential customer with average winter usage of 40 ccf will see a monthly bill decrease of 10%, from $58.75 to $52.79.”
The new rates will be discussed during a public hearing at city hall on September 12th, 2018.