Q) Does LCEC offer geography-based rates?
A) No. Geography-based rates are extremely rare and do not exist in Florida. The Florida Public Service Commission states that “no utility has a sliding rate structure.” The National Association of Regulatory Utility Commissioners does not even consider rate classes based on geography and customer density.
Q) Why not establish rates based on customer density?
A) Most cities have a wide diversity of customer densities, including many undeveloped areas. LCEC serves a number of areas (Marco Island, Matlacha, Captiva and others) that have higher densities than Cape Coral. Any density-based rate would need to be applied equally across the entire service area. This could produce an enormous number of rate zones that would be very costly to administer and would require continuous research and updates as densities constantly change.
Q) Are there risks involved in offering a city-only electric rate?
A) A city-only rate could pose significant risk to Members located within the City limits, particularly since the risk of storm damage to utility infrastructure within the City may be higher than in inland areas. Under a city-only rate structure, if a storm were to damage utility infrastructure within the City, members in the City could experience rate shock resulting from such costs no longer being spread evenly across the entire customer base.
Q) Does Cape Coral have a much higher population density than other regions LCEC serves?
A) No. Areas LCEC serves in Marco Island, Matlacha, and Captiva have higher densities than Cape Coral. The City calculations misrepresent the overall customer density of LCEC’s service territory outside of the City by including areas such as wetlands and parks to which service will never be provided.