Leesburg residents are about to see their utility bills creep up after a brutal late-January cold snap left the city-owned gas and electric systems more than $3.3 million in the red. To plug that hole, the city has tacked a $0.15-per-therm increase onto natural gas fuel charges as of Feb. 1, 2026, and will boost its electric bulk power cost adjustment by $0.03 per kilowatt-hour starting March 1, 2026. City officials are pitching the hikes as temporary, targeted moves to pay off an extraordinary fuel tab while keeping overall energy prices relatively steady for households.
City: Winter spike drove fuel prices above normal
In a press release from the City of Leesburg, utility managers said wholesale natural gas that usually costs around $3 per dekatherm rocketed to more than $50 per dekatherm during the freeze. Those short-lived but extreme prices translated into combined losses of roughly $3.3 million across city utilities as of Jan. 31, 2026, with nearly $1 million tied to the Natural Gas Utility and about $2.3 million to the Electric Utility.
Exact rate changes and when they hit bills
The Gas Utility boosted the fuel portion of its rate by $0.15 per therm effective Feb. 1, and the Electric Utility is set to raise its Bulk Power Cost Adjustment by $0.03 per kWh on March 1, 2026, according to WFTV. Under those changes, a typical residential customer using 1,000 kWh a month would see the consumption charge climb from $130.47 to $137.97, while a household burning about 16 therms of gas would pay roughly $2.50 more per month.
Why the utility says it had to act
City leaders stress that Leesburg runs its utilities as not-for-profit operations, which means fuel costs are passed straight through to customers rather than being absorbed when the market goes haywire. The City of Leesburg press release notes, "Keep in mind that the process of raising and lowering fuel costs allows the resale of energy at a consistently low price," and officials say they expect wholesale conditions to ease once the weather settles down and global energy markets calm.
What this means for households
For most residents, the adjustments show up as modest monthly increases instead of a single, budget-busting bill, though the hit depends heavily on how much power and gas a home uses. Local coverage and city estimates indicate the hikes are meant to be temporary fixes rather than long-term rate hikes, with officials pledging to keep an eye on fuel markets and pass any cost improvements back to customers, per WFTV.
Where to get more information
Residents with questions about the changes can call the Office of the City Manager at 352-728-9786 ext. 1100 or the Utilities main line at 352-728-9800. The city is also urging customers to keep an eye on its Rate Watch and utilities webpages for future updates, noting that it will continue tracking fuel costs and adjusting the fuel components on bills so wholesale price swings are passed through rather than absorbed over the long haul.
