Florida Public Service Commission Action
Q) Why did the City file a complaint with the PSC?
A) That’s a question best answered by the City Council and staff. However, the primary focus of the complaint revolves around a theory developed by the City’s outside legal consultant who argues that the City should receive an exclusive rate based on its geography and population density.
Q) Do any electric utilities in Florida offer geography-based rates?
A) No. In fact, PSC staff confirmed in an email to the Cape Coral Daily Breeze that no electric utility has a sliding rate structure based on geography, and that all customers within a rate class of a utility pay the same rates. City staff have argued that the City should have an exclusive rate based on population density; however, we could not identify where the City offers such rates to its citizens.
Q) The City’s PSC complaint also mentions LCEC’s Contribution-in-Aid-of- Construction (CIAC) policy. What is that policy?
A) When utilities construct new facilities to provide electric service, CIAC fees may be charged to those who benefit from the construction. LCEC has been actively reviewing its CIAC practices and procedures since July 2015, and the Board recently approved an update to the policy that effectively mirrors that of investor-owned utilities.
Q) The complaint also mentions the LCEC LED lighting rate. Did LCEC increase lighting rates for LED lights?
A) LCEC recently introduced its LED street lighting program. District street lighting rates remain unchanged with the new technology. While the long-term energy cost for each LED light fixture is lower, the installation and ongoing maintenance cost is higher, balancing out costs so that no rate increase was required.