Beginning with bills sent in November 2015, Florida Keys Electric Cooperative will implement a rate restructure. As a revenue neutral restructure, this change is not designed to increase revenue to the Co-op. The change is designed to ensure fairness between rate classes, promote efficient use of energy and maintain rates that are competitive with our neighbors.
Why is FKEC Retructuring the Rates?
FKEC is adjusting the company’s rates to better align our fixed and variable revenue streams and also to help promote energy conservation.
This rate restructure is the result of a cost of service study which indicated that FKEC was collecting a sufficient amount of revenue, but that the revenue stream was not in alignment with our costs. To remedy this, FKEC restructured the rates to collect more revenue from the Daily System Access Fee, a fixed revenue stream, and less from the per kWh Energy Charge, a variable revenue stream.
As part of the rate change, FKEC also wanted to provide an incentive for the majority of its members to conserve power and be rewarded by saving money. The incentive is for usage at or below 1,000 kWh per month, for which there will now be no Energy Charge. This means members using 1,000 kWh or less could save up to $18 per month depending on their electricity usage.
How are the rates being adjusted and how does this affect me?
The change will increase the Daily Access Fee by 20 cents per day for the residential and small commercial rate classes, but that will be offset by eliminating the 2.3 cents per kWh Energy Charge for the first 1,000 kWh of usage.
The Energy Charge will be charged monthly on all usage in excess of 1,000 kWh at 3.3 cents per kWh for residential customers and 2.3 cents per kWh for general service customers. FKEC hopes that by eliminating the Energy Charge on the first 1,000 kWh of usage, residential members will be encouraged to decrease their usage and enjoy a possible savings of up to $18 per month.
For the majority of FKEC residential customers – Those who use between 300 kWh and 3,000 kWh of electricity per month – the new rate restructure will result in a decrease in rates. Consumers using 100 kWh or less a month could see an increase in their bill of up to $3.59 per month over the current rates. Residential accounts consuming greater than 3,000 kWh of electricity will experience a slight increase over current rates.
How can I track my energy use?
All FKEC member-consumers can track your energy use online via FKEC’s SmartHub “Pay Your Bill and Access Your Account” login. Simply, register or login to SmartHub and utilize the “My Usage” tools. This online section provides several tools for you to easily analyze your past and current usage, as well as plan and conserve in the future.
A graph of your monthly energy use is also included on each billing statement.
How is this adjustment indicated on my electric bill?
Visit "How to Read Your Residential Electric Bill" for a full explanation.