When it comes to electric bills, what goes up usually doesn't come down. Not true, in the City Of Mount Dora. It was announced today that utility bills for customers receiving the city’s electric service will reflect a lower Power Cost Charge (PCC) rate starting on April 1. The PCC on the customers’ electric bills recovers the actual cost of power that the city purchases from Duke Energy.
The electric bill for a typical residential customer using 1,000 kWh per month will decrease by $5.64 or about 4.9%. Commercial customers will see a 4.8% to 6.5% decrease in their electric bills depending on their monthly electricity consumption.
This reflects the PCC decrease from $0.06520 per kWh to $0.05956 per kWh. The power cost reductions are due primarily to declining natural gas prices caused by supply and demand. More recently, the unprecedented fall in oil prices attributed to the slowing world economy has further eroded natural gas prices.
The PCC is normally calculated for April 1 and October 1 and applies to the following six month period. The PCC formula has an automatic "true-up" feature that ensures that electric customers only pay for actual power costs. The city does not make a “profit” on the PCC. It is simply a billing mechanism to pass along wholesale power costs to the city's electric customers