Orlando Utilities Commission customers could see a smaller electric bill by next spring under a newly proposed fuel rate decrease that the utility says would save a typical residential customer about $5 a month. The plan would also deliver nearly $3.3 million in combined monthly savings across OUC's entire electric customer base if it clears a vote set for next month.
According to WDBO, the OUC Board of Commissioners is scheduled to take up the proposal on Dec. 15, and if commissioners sign off, the lower fuel rate would not kick in right away — it would take effect in April 2027. As first reported by WFTV Channel 9 Orlando, OUC operates in Orlando, St. Cloud and parts of unincorporated Orange and Osceola counties, serving nearly 300,000 customers with electric, water, chilled water, lighting and solar services.
What the Proposed Cut Would Mean for a Typical Bill
Under the proposal, a household using 1,000 kilowatt-hours a month would pay about $128.85 — a figure OUC says sits $7.62 below the average charged by peer utilities across Florida, the station's report notes. Commercial customers would also see savings, though the size of the reduction would vary depending on how much energy a business uses, per the same account.
OUC General Manager and CEO Clint Bullock framed the proposal as part of a broader effort to keep bills manageable even as power costs climb nationally. The utility's reporting indicates Bullock said the proposed decrease reflects the utility's efforts to manage costs and pass savings along to customers as electricity costs rise nationwide.
A Pattern of Fuel Rate Cuts Since 2023
This would not be OUC's first attempt to soften bills through fuel-cost adjustments. Back in 2023, the utility approved a decrease in pass-through fuel costs that took effect that June, a move OUC said yielded, on average, a 10% reduction in customers' monthly electric bills across all customer segments. That earlier cut saved the average residential customer using 1,000 kWh about $13 a month in Orlando and Orange County and $13.52 a month in St. Cloud and Osceola County, the utility reported at the time.
A second adjustment followed that October, pending review by the Florida Public Service Commission, adding roughly $2 to $2.08 in additional monthly savings depending on location. Combined, OUC said those two 2023 rate changes produced a net average savings of $15 per month for a typical residential customer using 1,000 kWh. The utility followed up again in mid-2024, cutting fuel rates by another 5% effective July 1 of that year — what OUC described as its third fuel rate decrease since June 2023.
How Orlando's Rates Compare Statewide
The Florida Public Service Commission's most recent comparative rate report, dated Dec. 31, 2024, listed Orlando's typical 1,000-kWh residential electric bill at $125 per month. That snapshot predates the newly proposed cut, but it offers a benchmark against which OUC's projected $128.85 figure — and its claimed $7.62 edge over peer utilities — can be measured.
OUC customers have also recently navigated a separate pricing shift unrelated to fuel costs. As ClickOrlando reported last month, the utility's new DemandLevel plan cuts the per-kWh rate by 12.5%, or about a penny, while adding a monthly demand charge of $5, $10 or $15 based on a customer's highest 15-minute usage period. OUC estimated that roughly half of customers on that plan would see lower bills, about 30% would see little change, and the rest could end up paying up to $7 more per month.
What Happens Next
For now, the newly proposed fuel rate decrease remains just that — a proposal awaiting a vote. The OUC Board of Commissioners will consider it at the December meeting, and only if commissioners approve the plan would the lower rates take hold for customers starting in April 2027.
