City Commission to reduce Leesburg Electric rates beginning July 1, 2023
For immediate release: June 16, 2023
Contact: Office of the City Manager
3520728-9786 ext. 1100
City Commission to reduce Leesburg Electric rates
beginning July 1, 2023
LEESBURG, FL - Based on a number of influencing factors such as softening natural gas prices and the Florida Municipal Power Agency’s cost controlling measures, the Mayor and City Commission have determined that the current Bulk Power Cost Adjustment (BPCA) of $70 per 1,000 kWh can be reduced to $30 per 1,000 kWh. This change will be implemented effect ive July 1, 2023, allowing Leesburg Electric customers to immediately experience lower rates during the hot summer months.
At the start of FY 23, Leesburg Electric estimated that the average cost of wholesale energy would be $129/MW. Due to the aforementioned factors, wholesale power costs are trending in a range of $82/MW to finish the fiscal year; thereby, making the FY 23 average cost $102/MW. This savings is allowing the Utility to recapture the estimated FY 22 loss of $12.5 million significantly quicker.
Starting in the last Quarter of FY 23 (July 1), Leesburg Electric’s residential rate will be $137.94 for the first 1,000 kWh. City Manager Al Minner said, “The electric industry remains in a volatile time right now, but significantly lowering the power cost adjustment makes our utility rates competitive.” Leesburg Electric will ensure it continues to communicate with customers during this ever-changing time and will keep rates as low as possible.
Leesburg is a progressive city of more than 28,000 residents in northwest Lake County. The city government serves twice as many people with its electric, gas, water and wastewater public utilities. Leesburg is also a central hub for commerce, attracting 50,000 people to work each weekday. For more information, visit www.leesburgflorida.gov.