Florida public power utility Gainesville Regional Utilities is reducing its electric fuel adjustment on July 1, saving a residential electric customer using 1,000 kWh $15 a month, it said on June 26.
GRU is reducing the electric fuel adjustment from 65 mills to 50 mills, which equates to a $15 savings on a 1,000 kWh residential electric bill and a $12 savings on an 800 kWh residential electric bill. The average GRU customer uses around 800 kWh per month.
In addition to lowering its electric fuel adjustment, GRU also is reducing its purchased gas adjustment.
A natural gas customer using 25 therms per month will save $5, and the average GRU natural gas customer, who uses 20 therms per month, will save $4. GRU’s natural gas rates already are among the lowest in the state.
July’s reduction marks the second time in four months GRU has lowered its fuel adjustment. The fuel adjustment recovers costs that GRU incurs to purchase fuel and provide power. GRU does not earn a profit on fuel costs.
“Being able to lower fuel charges in the summer is extremely significant for our customers,” said GRU General Manager Tony Cunningham. “We’ve been able to reduce a 1,000 kWh residential electric bill by $30 over the last four months without sacrificing reliability or safety.”
In April, GRU reduced its fuel adjustment from 80 mills to 65 mills and its purchased gas adjustment from 90 cents to 70 cents per therm.
These reductions have a significant impact on GRU customer bills, especially during the summer when energy usage increases in Florida, it pointed out.
GRU began to gradually increase its fuel charges in November 2021, as numerous factors, including the war in Ukraine, caused natural gas prices to skyrocket worldwide. Monthly fuel costs at GRU increased from approximately $6.6 million in July 2020 to $20 million in July 2022.
GRU’s decision to lower its electric fuel and purchased gas adjustments in July is based on lower current and projected natural gas prices. The utility assesses fuel charges on a regular basis and adjusts them when appropriate.