LCEC July Power Cost Adjustment

June 29, 2022 - A Power Cost Adjustment (PCA) increase will be implemented for LCEC customers on the July bill. The increase is the result of rising purchased power costs passed on from the LCEC power supplier, Florida Power and Light (FPL). Power cost adjustments fluctuate and increase or decrease as the cost to generate power rises and falls. For LCEC, power costs reached more than 70 percent of total expenses, putting pressure on the Board to implement an increase.

PCA charges are determined to adjust for, or anticipate, projected costs for purchased power. Since 2014, there had been five PCA decreases. The most recent increase marks the third increase needed to recover power costs in 2022. There are no margins (profit) earned on the power cost portion of the customer bill, it is simply a pass-through to FPL.

Power cost adjustments are not unique to LCEC. Energy suppliers have a monthly adjustment based on variable fuel costs related to power production. The Public Service Commission authorizes PCA to address changing fuel and wholesale power prices. Without the PCA, utility base rates would be constantly changing to reflect the cost of power.

Even with the power cost adjustment, LCEC rates remain competitive within the region. LCEC customers have not seen a base rate increase in 14 years. The base rate is the portion of the bill that LCEC is able to manage through efficiencies, technology, and a close watch on the bottom line.

Customer Bill per 1,000 kWh

Customer Charge          $15

kWh Cost                      $81.20

Power Cost                   $55.50

Total                             $151.70 (increase of $32.70)

LCEC partners with United Way to offer energy assistance through 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.