Lakeland Electric is looking to increase its rates by 15.87% over the next four years, slowly but steadily increasing customers’ bills.
The municipal-owned utility will present an ordinance to Lakeland commissioners at their July 6 meeting to raise its base rate for customers starting Oct. 1, with increases each year through 2030.
“The reason is straightforward, even if the timing is never ideal. Our costs have gone up, materials, equipment and the people and systems that keep the lights on have risen. The base rate has not kept pace,” said Willem Strauss, LE’s assistant general manager of fiscal operations.
Lakeland Electric started to analyze its operational costs versus the rate it charges customers for electricity in October 2025. The utility looked at the revenue it needed to cover costs and decided it needed to raise the basic rate for electricity across all classes.
What’s in my electric bill?
Cathryn Lacy, LE spokeswoman, said customers’ electric bills consist primarily of three parts:
Lakeland Electric’s proposal is to increase the base rate for the next four years. The utility’s fuel rate is typically adjusted quarterly based on market conditions, and can be adjusted more frequently if needed.
Homeowner bills will gradually rise
The majority of Lakeland homeowners can expect to see their total electrical bill increase by an average of 2.4% a year for four years. This applies to approximately 126,000 of Lakeland Electric’s roughly 130,000 residential customers on standard billing, not those on residential demand or shift-to-save billing.
The average residential customer uses 1,178 kilowatt hours per month, according to Strauss. This means customers’ monthly bills would be around $163.42 in June 2026.
If LE’s proposal is approved, Strauss said the average bill will increase by approximately $2.83 as of Oct. 1. This does not take into account any changes to the utility’s fuel rate.
By 2030, the average residential customer could be paying $175.12 a month if the utility’s fuel charge remains stable. That’s an increase of nearly $12 a month from current rates.
Ryan Matley, principal of third-party consultant NewGen, who helped prepare the city’s rate study, said there is a way for customers to exercise control over their monthly bills.
Residential customers are billed on a tiered system, where there is a base rate for the first 1,000 kilowatt hours they use in a month, and that cost increases for power used from 1,001 to 1,500 kilowatt-hours. The rate rises again for power drawn above 1,500 kilowatt-hours.
Matley said the base rate for customers using up to 1,000 kilowatt-hours will increase by an average of 2% a year. Customers who focus on conserving power and lowering their electrical usage, might see less of an impact on their bills.
This was done intentionally to help those Lakeland Electric customers who might be on a fixed or limited incomes, Matley said.
Under the proposed rate increase, each customer’s monthly charge will gradually increase from $14.25 a month to $17.50 a month by 2030. This is a flat fee.
Commercial and industrial customers
Lakeland Electric’s proposed base rate hike will affect commercial and industrial customers slightly differently.
Small commercial users, about 14,000 customers, should expect to see their monthly bills increase an average of 2.8% per year. Small commercial customers will also see an increase to their monthly customer charge to help the utility cover its fixed operational costs.
The average medium-sized commercial customer will see a similar 2.8% annual change to their bill.
The proposal, if approved, will have a lesser impact on the city’s large commercial customers, an average annual change of 1.2%, and its three users labeled extra large commercial, which are anticipated to pay less than 1% more annually if the base rate increase is approved.
What’s next?
Lakeland Electric staff will take the request to the City Commission for a first reading at the July 6 meeting, which starts at 9 a.m. at City Hall, 228 S. Massachusetts Ave. A second hearing and vote is scheduled for the July 20 commission meeting.
Residents and Lakeland Electric customers will have the opportunity to comment on the proposed rate change at these hearings.
This article originally appeared on The Ledger: Lakeland Electric wants a rate hike. Here’s what it means for bills
Reporting by Sara-Megan Walsh, Lakeland Ledger / The Ledger
USA TODAY Network via Reuters Connect
By Sara-Megan Walsh, Lakeland Ledger | USA TODAY Network
