Tallahassee Utility Staff Recommends 2.5% Electric Base Rate Increase, Decrease in Fuel Cost Lowers Customers Bills

Tallahassee Utility Staff Recommends 2.5% Electric Base Rate Increase, Decrease in Fuel Cost Lowers Customers Bills

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.

5 Responses to "Tallahassee Utility Staff Recommends 2.5% Electric Base Rate Increase, Decrease in Fuel Cost Lowers Customers Bills"

  1. When has raising prices for a service ever mounted to savings for the consumer???

    City of Tallahassee “Professional Staff”, did any of you take economics? How much is your salary increasing because of your recommendation?

  2. OK city of Tallahassee professional staff: We have all pre-lubricated, bent over, and are ready for you to stick it to us. Nobody thinks your wack @zz “Increase here/Decrease there” scheme will result in anything but higher bills.

  3. Interesting, based on the COT solar farm contract, the success of the solar farm is predicated on gas prices going up. It’s going to be an interesting meeting on Wednesday.

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