New Utility Rate Structure Takes Effect

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KISSIMMEE, Fla., October 6, 2008 – Kissimmee Utility Authority has implemented a new rate structure for electric customers, effective with its October bills. The rate change is revenue neutral and does not affect the bill total.

The rate change was approved at a public hearing held in June. The rate tariff was also submitted to the Florida Public Service Commission for review and comment.

The rate restructuring:

• Incorporates more fuel into the base rate energy charge.
• Segregates governmental transfers from the base rate energy charge.

In light of the rising cost of fuel used to generate electricity, KUA has moved $0.04 per kilowatt-hour (kWh) from the fuel charge into the energy charge. This change increases the fuel portion of the energy charge from $0.05233 to $0.09233/kWh.

The segregation of governmental transfers from the energy charge was done to help better identify individual costs. The City of Kissimmee charter requires a transfer from KUA to the city’s general fund, based on a transfer rate of 6.24 mils per kWh of retail electricity sales. This transfer will now appear as a separate line item on the bill entitled “Governmental Transfers/Taxes.”

This graph shows a bill comparison between the old and new bill calculation. The example bill is based on residential consumption of 1,100 kilowatt-hours (kWh).

October Bill for KWH Usage of
1100

Electric Portion of Bill

Old
New
Customer Charge
$ 10.17
$ 10.17
Energy Charge
$ 112.19
$ 149.33
Fuel Charge
$ 31.88
$ (12.12)
Gross Reciepts
$ 3.96
$ 3.96
Utility Tax
$ 6.46
$ 6.46
Governmental Transfers
6.86

Electric Subtotal
$ 164.66
$ 164.66
Note: COPCA rate of:
$ 31.88
$ (12.12)

Founded in 1901, KUA (www.kua.com) is Florida’s sixth largest community-owned utility providing electric and telecommunication services to 170,000 residents in five Central Florida counties.

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