LP&L is lowering the power cost recovery factor (PCRF) portion of the electric rate for the second time this summer and fifth time in the past 24 months, resulting in another substantial decrease in overall rates for all customers. The PCRF is the amount LP&L pays to purchase or generate power, passed directly through to customers with no mark-up.
The lower rate is possible due to lower wholesale purchased power costs and low natural gas prices and will be set for August and September, which are expected to be the hottest months of the year.
“LP&L is committed to providing our customers with safe, affordable and reliable power,” said David McCalla, director of electricity utilities. “We’re thankful the timing worked out to where we can pass on the savings to our customers when electricity usage is historically the highest.”
Here is a summary of the rate changes in effect:
On June 1, 2019, LP&L lowered the PCRF portion of the electric rate.
On August 1, 2019, LP&L will lower the rate for the remainder of summer.
Rate 1 applies to customers who have electric and natural gas service, which account for the majority of residential customers. Rate 3 applies to customers who only have electric service.
August 1, 2019 Rate Decrease Breakdown:
Rate 1: Base Rate – $0.03381
PCRF – $0.061770 to $0.050190 (18.7% Decrease)
Total Rate for August and September 2019 – $0.084 per kilowatt hour
Rate 3: Base Rate – $0.02921
PCRF – $0.061400 to $0.049930 (18.7% Decrease)
Total Rate for August and September 2019 – $0.07914 per kilowatt hour
The new rates, affecting all residential and commercial customers, will go into effect on August 1, 2019. On October 1, 2019, rates should return to levels similar to previous winter season.