July Power Cost Adjustments Implemented

July 20, 2022 – A Power Cost Adjustment (PCA) increase was implemented for LCEC customers in July. Prior to 2022, LCEC hasn’t had a PCA increase since 2008. In fact, there have been five PCA decreases since 2014. The PCA increase equates to $55.50 per 1,000 kWh which will result in approximately a 27.5 percent increase per 1,000 kWh on the average residential bill.   

This increase is the result of rising purchased power costs passed on from the LCEC power supplier, Florida Power and Light (FPL). PCA charges are determined to adjust for or anticipate projected costs for purchased power. For LCEC, power costs reached more than 70 percent of total expenses putting pressure on the Board of Directors to implement an increase.

We ask that customers understand that there are no margins (profit) earned on the power cost portion of the customer bill, it is simply a pass-through to FPL.

Since the PCA portion of the bill is based solely on the cost of power and is passed through to customers, if power cost decline, customers will see a decline in the power adjustment on their bill. However, with escalating power costs, the potential for a decrease in the near future is unlikely.

Just like LCEC, all energy suppliers have a monthly adjustment based on variable fuel costs related to power production. Utility regulations have been in place since 1973 to address volatile fuel markets and allow for power cost recovery. Without the PCA, base rates would be constantly changing to reflect the cost of power.

Help is available for those who need it through a partnership between LCEC and the United Way called the Power to Share Program. The program is funded by LCEC employees and customers to help qualified customers in need of electric bill payment assistance.