VERO BEACH — Due to lower than anticipated costs of wholesale power the past few months, Vero Beach city staff will recommend that the City’s electric rates be reduced by 4.2 percent beginning June 1.
City Manager Jim O’Connor told the City Council Tuesday that he and Finance Director Cindy Lawson have analyzed the expenses and revenues of the electric utility and will recommend the rate change when the issue is discussed at 2 p.m. Thursday by the Finance Commission.
During the first quarter of 2014, billed revenues came in right on target, while power costs came in under the forecast by just more than a half-million dollars.
Based upon this trend continuing throughout the summer, memo to the commission states that the bulk power cost charge would be reduced from $75 per 1,000 kilowatt hours to $69.50 per 1,000 kilowatt hours.
A residential customer using 1,000 killowatts and now paying $129.43 plus taxes and fees would pay $123.93 plus taxes and fees after June 1.
After the rate reduction, Vero Electric will be 26.4 percent higher than the Florida Power and Light rate of $97.97 plus taxes and fees for the same 1,000 kilowatt hours.
Under the new rates, staff projects that the utility will end the fiscal year on Sept. 30 with a surplus of $987,000.
Approval of the Finance Commission or the City Council is not required to adjust the rates, but the City staff customarily presents the analysis to both boards prior to making the change.
