The Gainesville Regional Utilities Authority recently approved a resolution to change the Florida public power utility’s residential electric tier structure beginning Jan. 1, 2025.
These changes reduce bills for the majority of GRU’s residential electric customers, as we reinforce our commitment to putting customers first.
The changes include expanding GRU’s lowest base rate tier from 850 kWh to 1,000 kWh, which gives more customers access to lower-priced power and increasing the base rates on the tier usage above 1,000 kWh from $.1121 per kWh to $.1213 per kWh, which makes the modifications revenue-neutral to GRU.
Based on GRU’s analysis:
- 59 percent of GRU customers (those using 851 kWh to 1,450 kWh per month) will see lower bills.
- 24 percent (those using up to 850 kWh a month) will pay the same amount as before.
- 17 percent (those using over 1,450 kWh a month) will pay more.
“We had an opportunity to make rate tier changes that benefit the majority of our customers, so we brought it to the Authority, and they agreed it’s a better model,” said GRU CEO Ed Bielarski. “It’s our mission to continue looking for ways to reduce bills and put our customers first.”
GRU’s rate structure historically includes two tiers. Customers who use less energy and fall into the lower tier are rewarded with a price break for their conservation efforts.
However, the 850 tier break was not consistent with many of GRU’s fellow utilities in Florida, it said.
With the new tier adjustments, a 1,000-kWh residential electric bill will decrease $4.13 per month and bring GRU closer to the middle of the pack for electric base rates.
