Board Seeks to Rescind Conservation Rate for Small Businesses

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KISSIMMEE, Fla., November 6, 2009 – Thanks to lower fuel costs and concern that a newly-established electric rate unfairly penalizes its customers, the Kissimmee Utility Authority board of directors on Wednesday authorized the rollback of a conservation rate it implemented for small businesses on Nov. 1.

The utility will hold a public hearing on the rollback at its December 9th meeting and has notified the Florida Public Service Commission of its intent. The proposed rate change would take effect on Jan. 1, 2010.

“With the recent drop in natural gas prices, we realized we could accomplish rate relief for all customers, regardless of their electricity usage, by returning to our original rate structure,” said KUA chairman Nancy Gemskie. “This assures that all of our small businesses are treated equally and fairly.”

Originally designed to provide rate relief and reward energy conservation, the conservation rate for small businesses was approved by the utility board on Oct. 7. The rate lowers by 10 percent the energy costs of nearly 6,000 Osceola County businesses that use 1,500 kilowatt-hours (kWh) or less per month, but raises by 2.9 percent the rate for the remaining 4,000 small businesses that use more than 1,500 kWh. The current rate is revenue neutral to KUA and to the small commercial class as a whole.

Founded in 1901, KUA (www.kua.com) is Florida’s sixth largest community-owned utility providing electric and telecommunication services to 62,000 customers in Osceola County, Fla.

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Chris M. Gent
(407) 933-9836
cgent@kua.com