Lakeland Electric customers will see a $2 decrease in their fuel rate this spring, dropping it to its lowest point since mid-2021.
Lakeland officials approved lowering the municipal-owned utility’s fuel rate from $38 to $36 per 1,000 kilowatt hours effective in April. This will save the average residential customer who uses 1,200 kilowatt hours about $2.40 on their monthly bill.
Sandra Ruede, LE’s fuels manager, told city commissioners that February’s weather was warmer than anticipated, causing less fuel to be used for heating. The weather forecast for March to May is calling for continued well-above normal temperatures.
The warmer-than-anticipated weather combined with a surplus natural gas supply in national storage has led to lower fuel costs.
Lakeland Electric currently has about $40.3 million in its fuel reserves as of January. Ruede said it should be closer to $27 million, as it has overcollected.
Lowering the fuel rate will gradually lower the utility’s reserves, while allowing it to keep enough on hand to adjust for any sudden market fluctuations, Ruede said.
“We do realize we are still in the market, factors can change really quickly if the markets start to change, and we would not have to make a significant swing from downward to upwards,” she said.
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Predications call for a surplus in the natural gas supply given the mild winter with prices remaining stable, Ruede said.
However, the National Oceanic and Atmospheric Administration, commonly known as NOAA, has predicted Florida will see a a warmer than normal summer this year.
Lakeland Electric typically adjusts its fuel rates before the city’s Utility Committee every three months, but it can be changed next month if it becomes necessary.
Sara-Megan Walsh can be reached at swalsh@theledger.com or 863-802-7545. Follow on X @SaraWalshFl.
Read More:Lakeland Electric drops its fuel rate by $2, lowest since mid-2021
2024-03-08 12:00:39
