City of Ocala electric customers will notice some financial relief beginning next month.
During a meeting on Tuesday, Ocala City Council members approved a reduction to the power cost adjustment (PCA) rate and an increase in the electric base rates, which will result in an approximate 8% decrease in customers’ monthly bills.
The PCA is the mechanism by which the fluctuation of fuel costs is passed on to the customer, while the base rate supports operating, maintenance, and capital improvement costs.
In August of 2023, the City of Ocala hired Leidos, Inc. to perform a comprehensive rate study. The purpose of this study was to identify the overall revenue requirements to cover the city’s purchased power costs, system-wide operations, maintenance, and capital improvement needs.
On January 24, 2024, the Utility Advisory Board unanimously approved the rate study findings and staff recommendations.
Effective on Friday, March 1, 2024, 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, resulting in an overall rate reduction.
The customer service charge, which is assessed to each customer every month, will be raised from $17 to $20.
Beginning in March, residential customers who consume approximately 1,000 kWh will experience a reduction of $14.93, or 8.1%, in their overall bill. The exact amount of reduction will vary depending on individual energy consumption.
For commercial and industrial customers, a similar monthly reduction will be reflected.
Any customers with questions or concerns should contact the City of Ocala’s Customer Service Office at 352-629-2489.