OUC's Proposal Risks Higher Rates
Mary Dipboye | Published on 12/2/2024
As a long-time advocate for clean energy, I am deeply concerned about the Orlando Utilities Commission’s (OUC) proposed changes to residential billing. These new rate structures will increase bills for many residents, weaken access to solar and energy efficiency, and undermine Orlando’s renewable energy goals.
OUC’s plan introduces demand-based charges that penalize customers for occasional peaks in energy use and time-of-use charges that bump up the charge per kilowatt hour from 2-8 p.m., even on weekends and holidays.
Imagine a family juggling daily tasks — parents running a load of laundry while cooking dinner as the kids do their homework on several computers. Under the new rate structure, this brief increase in usage could result in up to a $15/month fee for the family. Families will need to spread out usage across the day, but also remember to shift
major energy pulls (like drying clothes or baking) away from 2-8 p.m. No blackout dates, no exceptions.
This approach could be especially challenging for low-income families who often lack the flexibility to spread out usage to try to avoid spikes in usage. These spikes can occur anytime, not just during peak demand on the grid. So, they must shift their energy usage to off-peak hours or upgrade to more efficient appliances and be sure to not use
too much energy at one time. There are new energy efficiency rebates for renters to upgrade appliances, rather than their landlords doing it. Rather than supporting residents as they struggle to manage their energy costs, OUC’s proposal would trap them in a billing system that penalizes rather than empowers.
But the impact doesn’t stop with individual bills. The proposed rate changes also discourage investments in energy efficiency and solar power — key strategies for both lowering costs and supporting Orlando’s clean energy goals. As chair of the Clean Energy Team for the League of Women Voters of Orange County, I know that many residents have made significant investments in rooftop solar, energy-efficient appliances, and home improvements with the expectation of seeing lower utility bills over time. These investments not only benefit individual households but also strengthen our community’s resilience, helping Orlando move toward a stronger, more sustainable energy future. By increasing fixed charges, OUC reduces the financial benefits of these upgrades, making it harder for families to justify the upfront costs of transitioning to clean energy. OUC is effectively putting up barriers for Orlando residents who want to reduce their energy usage.
Orlando has committed to ambitious clean energy goals, aiming for 100% renewable energy by 2050. Reaching this target requires that we work together — residents, businesses, and utilities alike — to reduce emissions and support innovative energy choices. However, by disincentivizing solar and other energy efficiency choices, OUC risks
stalling Orlando’s progress and squandering an opportunity to be a leader in clean energy.
The timing of these rate changes is also particularly troubling. Federal programs are now offering unprecedented support for adopting clean energy and energy efficiency, especially for low-income communities. These once-in-a-generation opportunities are designed to help communities like ours make the shift to clean energy and energy-
efficient upgrades in a way that’s feasible. Yet with OUC’s new structure in place, many Orlando residents would be left out or benefit less from these programs.
I urge all Orlando residents to reach out to OUC and let their voices be heard. We need fair policies that support energy efficiency, encourage clean energy adoption, and respect residents’ investments in their own energy futures.
Tell OUC that these proposed changes are a step in the wrong direction.
Together, we can advocate for a fairer, more sustainable approach that benefits all of us and helps Orlando achieve its clean energy goals.
Mary Dipboye serves as Chair of the Clean Energy Team for the League of Women Voters of Orange County.