Lakeland Electric committee recommends keeping fuel rate at $41.50/MWh and approves transformer monitoring purchase

At a meeting of the Lakeland Electric Utility Committee, staff recommended keeping the fuel rate at $41.50 per megawatt‑hour and the committee gave the item a favorable recommendation to the full city commission. The recommendation followed a fuel‑market briefing that described a polar vortex‑driven price spike this winter, heavy withdrawals from gas storage and growing U.S. LNG exports as factors contributing to price risk.

Sandra Reed, the fuels manager, told the committee that withdrawals during the polar vortex left storage below the five‑year average and below last year’s levels, while forward curves and NYMEX movements drove most price volatility. "I am recommending that while we can continue to get back to our customers, leave the rate at the $41.50, and move that reserve margin closer to where we want it to be," Reed said.

Reed and staff said Lakeland’s internal reserve position remained above the utility’s target band even after the winter stress, and that keeping the current fuel rate would allow reserves to move back toward target while preserving competitive all‑in rates compared with nearby utilities.

The committee also approved a sole‑source purchase agreement with GE Energy Management Services LLC for five dissolved‑gas analysis devices to monitor transformers at a total cost of $184,298, funding that staff said is included in Lakeland Electric’s FY2025 budget. City staff described the monitors as a reliability investment that will help detect transformer issues earlier and reduce lead‑time exposure in a constrained supply chain.

Both the fuel‑rate recommendation and the GE equipment purchase will be presented to the Lakeland City Commission for final approval at the next commission meeting. The committee approved both items by voice vote; the motion records in the transcript did not list named movers or a roll‑call breakdown.