Gainesville Regional Utilities (GRU) announced a December reduction in its fuel adjustment rate for electric and gas customers, marking the fourth reduction this year.
For electric customers, the fuel adjustment will drop by five mills to a rate of 40 mills. The five-mill reduction will result in a $5 savings for customers using 1,000 kilowatt hours. For the average bill using 800 kilowatt hours, customers will save $4.
Natural gas customers using 25 terms will save $0.75.
The fuel adjustment rates rise and fall depending on the market cost for natural gas. The rate is a straight pass-through cost, meaning GRU doesn’t make money on that portion of the bill.
GRU raised its fuel adjustment cost to keep up with rising natural gas prices in 2022, causing the fuel adjustment to nearly equal the base rate. At the start of 2023, electricity customers had a rate of 80 mills for the fuel adjustment. GRU dropped the rate by 15 mills in April and July followed by a November reduction of five mills.
Even with a 3% increase in the electricity base rate that began in October, a 1,000-kilowatt-hour bill this December will be around $36 less than December 2022.
The topic of GRU rates is on the agenda for the GRU Authority meeting scheduled for Dec. 6.