LAKELAND ELECTRIC REDUCES FUEL CHARGE

LAKELAND ELECTRIC HAS THE 2ND LOWEST RESIDENTIAL RATES IN FLORIDA

LAKELAND, FL (June 15, 2009) – During today’s Utility Committee meeting, the Lakeland City Commission voted unanimously in favor of reducing the current fuel charge by $2.15/1,000kWh effective July 1, 2009.  Starting in July, Lakeland Electric’s fuel charge for residential customers will be $54.75/1,000kWh.  With the newly established rate, a residential customer will pay $113.24/1,000 kWh, making it the second lowest residential rate in Florida.

Below is a breakdown provided by the Florida Municipal Electric Association that compares the rates of similar sized municipal operated electric utilities, neighboring investor owned electric utilities and other utilities operating in Polk County.

July Residential Rates for 1,000 KWH

Utility Base Rate Fuel Charge Total

Florida Power & Light                     $51.89                   $54.92                   $106.81

Lakeland Electric                               $58.49                   $54.75                   $113.24

JEA (Jacksonville)                            $60.97                   $55.14                   $116.11

Progress Energy                                $63.72                   $56.00                   $119.72

OUC (Orlando)                                    $77.25                   $42.07                   $119.82

Tampa Electric                                   $51.92                   $64.16                   $125.23

GRU (Gainesville)                             $71.60                   $61.00                   $132.60

Tallahassee                                         $64.80                  $76.05           $140.85

Bartow                                                 $68.52                   $72.96                   $141.48

Fort Meade                                        $110.86                 $82.00                   $192.86

Lakeland Electric commercial customers will also enjoy the benefits of the lower fuel charges.  Lakeland Electric’s largest industrial energy users will have the lowest commercial rates in the state starting in July.

Lakeland Electric bills are broken out for customer convenience to show the base charge and the fuel charge.  The fuel charge on a utility bill is exactly that, the actual costs for fuel used to generate the amount of electricity used within a residence or business.  Most utilities subscribe to the same billing practice and break out the base rate and the fuel charge for their customers. There is no mark-up in fuel.  In fact, fuel is a straight pass-through to customers.  Lakeland Electric makes no profit in fuel.

Lakeland Electric is Florida’s third-largest public power utility.  Lakeland Electric provides electricity to more than 120,000 residential and commercial customers. Power is generated at Lakeland Electric’s two main power plants, the 941-megawatt McIntosh Power Plant and the 176-megawatt Larsen Power Plant. The utility also operates a group of energy-efficient generating units capable of providing up to 50-megawatts of additional electricity when other units are out of service or during periods when demand for electricity is highest.