OCALA, FL (352today.com)- When it seems like the cost of just about everything has gone up, Ocala residents received some good financial news this week. The Ocala City Council approved a reduction to electricity bills starting in a few weeks..
A reduction to the power cost adjustment (PCA) rate and an increase in the electric base rates have resulted in an 8% decrease to customer’s monthly bills. The decrease goes into effect the beginning of March.
The PCA is essentially the mechanism by which the fluctuation of fuel costs is passed on to the customer, and the base rate “supports operating, maintenance, and capital improvement costs,” said the city in a release.
City officials say last August, the city hired the company Leidos, Inc., to study the comprehensive rate. They say the reason for the study was to pinpoint the overall revenue requirements to cover Ocala’s purchased power costs, system-wide operations, maintenance, and capital improvement needs.
On January 24, the city says the Utility Advisory Board unanimously approved the findings; as well as staff recommendations.
On Friday, March 1, the PCA rate will be lowered from $0.056 to $0.02815 per kilowatt hour (kWh) and the energy charge (base rate) will increase from $0.08964 to $0.10126 per kWh, ultimately resulting in a rate reduction.
City officials say the customer service charge will be raised from the current $17 to $20.
|READ: Super weather for Super Bowl Sunday and all other weekend plans
What’s the bottom line?
According to the release, residents who consume around 1,000 kwh will see a reduction of $14.93, or 8.1% in their overall bill. The exact reduction amount will vary depending on each individual’s energy consumption. City officials say commercial and industrial customers will also experience a similar monthly reduction.
