Florida Public Utilities plans rate increase

By Archive

Published: May 12, 2008

A rate increase for Florida Public Utilities customers will go into effect later this month.

Another rate increase is likely to follow this one in January 2009.

That’s the word coming from Don Myers, general manager of the Northwest Florida Division of Florida Public Utilities, which serves a large portion of Jackson, Calhoun and Liberty counties.

The cause of the rate increase is higher fuel prices. The base rate increase by FPU will take effect with meter readings after May 22, Myers said.

“The average customer will be paying $111.13 a month, or $3.58 a day, based on 1,000 kilowatt hours. That’s roughly equivalent to a gallon of gas,” Myers said. “While we have experienced cost increases due to higher fuel charges, this is the first base rate increase in four years. Base rates cover Florida Public Utilities’ operating costs and have remained stable since 2004.”

But since 2004, increased business costs for health care, insurance, storm hardening initiatives and other factors have come along, Myers said.

Prior to October 2007 a customer’s monthly bill less taxes, based on 1,000 kilowatts usage, was $70.29. In October, a correction for fuel costs resulted in a 13.5 percent increase. The interim rate increase was established Nov. 22, 2007, added 1.8 percent, with the bill less taxes for 1,000 kilowatts usage at $81.23.

Myers said the greatest increase in electricity costs was related to the annual fuel adjustment in January of this year. That increase was 28.6 percent, which would result in a $104.50 bill less taxes for 1,000 kilowatts usage.

“Under our new contract there’s a clause that fuel will be adjusted annually,” Myers said. “From what I’m seeing fuel will continue to go up. The clause says it will be adjusted annually, and that could be up or down. But right now I don’t see fuel costs declining.”

This month’s base rate increase will add 6.3 percent to the 1,000 kilowatts usage bill less taxes, bringing the average home owner’s bill to $111.13, Myers said.

Of course, prices will vary from household to household, depending on usage and efficiency.

“We know that any increase has an impact on our customers, especially those on fixed incomes, and are committed to helping our customers conserve and save,” Myers said.

FPU has an energy conservation program for home owners and commercial users.