Cape Coral, LCEC explore restart of negotiations

By Frank Bumb The News-Press (Dec. 20, 2016) — Cape Coral and the Lee County Electric Cooperative want to talk about talking some more. On Thursday, Cape Coral City Manager John Szerlag and LCEC CEO Dennie Hamilton will sit down to discuss a possible framework to restart the stalled franchise agreement negotiations between Florida’s 10th largest city and its electric …

City’s legislative agenda mentions LCEC. Why?

Q. The City’s legislative agenda mentions LCEC. Is what they’re asking of the Florida Legislature similar to what is included in their Florida Public Service Commission filing? Robert P. – Cape Coral A. While the City’s legislative agenda differs from the Florida Public Service Commission complaint, it reinforces the fact that the City of Cape Coral wants LCEC to abandon …

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History of LCEC electric rates

(Dec. 15, 2016) — The LCEC mission is very simple: To provide reliable power and quality service at the lowest possible rate. The history of LCEC rates include the fact that they are designed to cover the cost of doing business. Included in those costs are power supply (69 percent), depreciation and taxes (10 percent), net margins returned to members …

Member Equity and How it Works

Q: LCEC has millions of dollars in member equity. I realize that the money is used for improvements and maintenance, but we’re talking a lot of money being held back for a very long time. Why won’t LCEC just lower how much equity it keeps and give the rest back to the members? Member on Sanibel A:  We get this …

Will LCEC terminate the franchise agreement?

Q: I’ve read the letter from Dennie Hamilton in The News-Press where he states that LCEC will terminate the terms of the expired franchise agreement with the City of Cape Coral. Is he willing to continue negotiations or is the termination date a done deal? – Joe G., Cape Coral A: Thank you, Joe. A franchise agreement simply allows LCEC …

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LCEC members get the ‘credit’ they deserve

Electric cooperatives operate at cost, they are not in business to make a profit. So any excess revenues, called margins, are returned to LCEC members in the form of capital credits. There are two ways that LCEC finances long-term investments in utility infrastructure: debt and equity. Debt is borrowed from outside sources such as banks. Equity is money invested by …