(Aug. 9, 2016) — Last month LCEC electric rates fell for the fifth time in the last three years, thanks to a rate reduction approved by the LCEC Board of Trustees. For members, that means electric rates are far below state and national averages.
The LCEC residential electric rate for 1,000 kilowatt-hours (kWh) fell to $102.50, a drop of almost 9 percent since 2013. This puts LCEC rates way below the state’s municipal and investor-owned utilities average rates ($112.42 and $123.98, respectively). Based on the most recent published rate comparisons, only four of the 55 electric utilities in Florida have lower residential rates for electricity at that usage level.
Employees work hard every day to deliver on the promise of providing reliable electricity and quality service at competitive rates.
It is no easy feat but LCEC is not in the business to earn a profit for shareholders or generate revenue for non-electricity related projects so every measure to keep costs low benefits members. We are in business only to serve our members, who with this reduction pay less now for electricity than they have since 2006.
Electric Rates Just One Benefit
The benefits of cooperative membership go beyond low electric rates. Cooperative members provide funds to operate their electric utility and are allocated equity annually. A portion of the customer equity is retired and returned to members when financially feasible. LCEC returned more than $10 million to active and inactive cooperative members in 2016 and has retired more than $240 million over the years. The benefits of cooperative membership can be quantified as an effective rate discount to customers of just over 7 percent.
LCEC has a long-range business objective of remaining one of the lowest-cost residential electric providers in Florida and employees continue to work daily to achieve that goal.