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% for their electricity due to a 3% franchise fee and a 7% public service tax imposed by City Council. LCEC collects the fee/tax from customers and remits it to the City.

The average 1,000 kWh electric bill for City operated electric companies in Florida is $115.22 (May, 2017). Compared to the LCEC bill of $102.50 for $1,000 kWh, there is only one City operated utility that has lower rates.

This question and answer published July 26, 2017. See more questions and answers, and ask your own question. We will publish it on the Questions & Answers page.

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