Electric bills cause sticker shock
Residents and businesses are having to dig deeper into their pockets to keep the lights on.
Rising electric bills throughout Southwest Florida and beyond have frustrated homeowners and leave them wondering why such a jump has occurred.
According to Lee County Electric Cooperative, the cost of natural gas has increased 300% over the past year. LCEC spokesperson Karen Ryan told The Breeze that the Power Cost Adjustment (PCA) is based on increased or decreased fuel costs from the LCEC wholesale power supplier: Florida Power and Light.
“The revised PCA went into effect on July 1, 2022 and increases from $0.0228/kWh to $0.0555/kWh. LCEC wholesale power cost is more than 70 percent of our total expenses,” Ryan said in an email.
She noted that LCEC purchases electricity from FPL due to its diverse fuel mix. This year, as a result of “volatile” fuel prices, LCEC has under-recovered $78 million from customers to pay FPL for purchased power. There was no way for FPL to predict the impact of the fuel price disruptions and when they bill for the cost of power, it is passed on to customers through the Power PCA.
“Utilities across the nation are feeling the impact of rising fuel costs,” Ryan said.
It is important to note that natural gas is not the same as gasoline. Crude oil is used to manufacture gas and diesel. Natural gas is the fuel used to generate most of the electricity in Florida.
Since 2014, LCEC has decreased the PCA five times. The July increase is the third increase in 2022. Power Cost Adjustments have been authorized by the Florida Public Service Commission since the 1973 Arab Oil Embargo to reflect changing fuel and wholesale power prices.
“Without Power Cost Adjustments, a utility’s base rates would be constantly changing to reflect increases and decreases in the cost of power,” Ryan said.
So, how much of an increase have customers felt?
Ryan said the increase is different for each customer because it is based on the amount of electricity used. The average usage of 1,000 kWh would result in a 27.5% increase. Those using more than 1,000 kWh will see a higher increase.
Ryan added that other reasons bills may increase include:
• Customers in Cape Coral pay city fees and taxes of 10% on their total electric bill. When the bill is higher, the fee/tax amount is also higher.
• The area is experiencing record heat which causes AC units and other appliances to work harder and use more energy.
• The number of days in a billing cycle fluctuates from month to month.
What can you do to help curb this increase in rates?
• Enroll in LCEC’s SmartHub to view daily usage. By changing habits customers can see their usage decline.
• View Energy Saving Tips at LCEC.net for low cost or no cost ways to save.
• Utilize the online LCEC Energy Tools
• Keep AC no lower than 78 degrees. Don’t use the oven to cook – grill or use the microwave. Use energy efficient lighting.
• Make sure water heater is no higher than 120 degrees.
LCEC officials stated they are a not-for-profit electric cooperative only in business to serve its members. There are no margins earned on the power cost portion of the customer bill, it is simply a pass-through to its supplier. Since the PCA portion of the bill is based solely on the cost of power and is passed through to customers, if power costs decline, customers will see a decline in the power cost adjustment on their bill.
County Program
Lee County Commissioners voted Tuesday to accept about $1 million in additional funding from Florida Department of Economic Opportunity for the Low Income Home Energy Assistance Program to assist households with electric costs or to prevent disconnections of electric services.
This is an existing and ongoing program, but with the additional dollars approved Tuesday, staff estimates about 1,950 households will receive assistance. Qualifying households must have an income at or below 150% of the federal poverty level and must have not received Low Income Home Energy Assistance Program assistance in the past 12 months.
Commissioners also voted on Tuesday to accept about $2.8 million from the Florida Department of Economic Opportunity for the Low Income Home Water Assistance Program to assist households with water and wastewater costs.
According to county officials, “funds will be used through September 2023 to assist households countywide — including those within municipalities — to prevent disconnection of service.” The program will help with past-due water and/or wastewater bills for households with an income at or below 150% of the federal poverty level. For a family of four, for example, the maximum annual household income to be eligible for assistance is $48,646.
The Low Income Home Water Assistance Program is new for Lee County. Staff estimates about 3,790 households will be helped. It represents another program through which county commissioners are infusing federal and state funds to residents in need.
For both programs, the Florida Department of Economic Opportunity funds are available due to the American Rescue Plan Act.
Beginning Aug. 15, people can begin applying two ways:
• Online: Go to www.leegov.com/dhs/assistance/financial.
• Paper applications: Pick up at Lee County Human & Veteran Services, 2440 Thompson St., Fort Myers, FL 33901. Weather-proof bins on the building’s exterior hold the applications, and a secured drop-box is there for those who would like to return applications without having to mail them.
Cape Coral residents can also reach out to the United Way for assistance with paying a utility bill. Individuals can contact 211 for help. Simply call 211 to speak to a specialist.
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To reach CJ HADDAD, please email cjhaddad@breezenewspapers.com