Are LCEC’s rate increases restricted in any way?

Q. Are there limitations on LCEC’s ability to raise prices under the franchise agreement that recently expired? If not, are rate increases restricted in any way? Ms. L. – Cape Coral A. The simple answer is no, under the expired agreement there are no limitations related to rates. A franchise agreement is simply an agreement between a utility and a …

Are rate increases likely with a City operated utility?

Q. Could the City raise rates anytime they want if they take over the electric utility? Bob R. – Cape Coral A. Yes, City Council would have the authority to raise electric rates anytime throughout the year. Municipal utilities are often utilized as additional revenue stream for local government. Customers in the City of Cape Coral pay an extra 10% …

Franchise agreement negotiations and the costs associated?

Q. Why is it taking so long to reach an agreement? How much money has been spent on this issue because I am paying for both sides? Vickie A. – Burnt Store A. Negotiations were initiated two years ago in the hopes that an agreement would be reached prior to the expiration of the existing agreement. The City wanted to …

The cooperative business model – how revenue is allocated?

Q. The City Manager states that LCEC is holding on to profits that are excess funds that should be returned to ratepayers. Is this true? If so, would independent auditors approve of these financial practices? Susan M. – Cape Coral A. The cooperative business model has been utilized across the world since the 1800’s. It has survived that long because …