Rates down 27 percent since 2008

As another important measure to help residents and local businesses save money during these trying economic times, the City of Tallahassee Commission unanimously approved lowering electric rates for the third time in the past 12 months. Effective February 1, electric rates for residential customers will decrease by 3.5 percent while rates for commercial customers will drop about 4 to 4.5 percent, depending on the size of the business.

Commissioners voted to decrease the rates two months earlier than originally planned in an effort to help more residents save on energy costs during the cold weather months.

“The cost of energy represents a substantial portion of a household’s budget. Thus, the goal is to provide important financial relief to customers while also helping to stimulate the local economy,” said Mayor Pro Tem Andrew Gillum, lead commissioner on the City’s Financial Viability of the Government target issue committee.

“This is great news for our neighbors and local businesses, especially during these tough economic times,” said City Commissioner Mark Mustian, also on the Financial Viability of the Government target issue committee.

Rates are typically adjusted twice annually in April and October, based on the cost of fuel to run the power plants. The City’s rates remain below the state average. Since October 2008, City electric rates have decreased by 27 percent, which equates to a $110 million annual reduction in electric costs for Tallahassee.