The City of Homestead is excited to announce a substantial reduction in the Power Cost Adjustment (PCA) portion of HPS electric bills, effective May 15th, 2024. Thanks to lower fuel costs associated with power generation, the Electric Utility will be decreasing the pass-through costs from $40.50/Megawatt-hour to $24.00/Megawatt-hour. This reduction will result in tangible benefits for residents. The average residential bill (based on 1,200 kWh) will see a significant decrease of $19.80 per month, plummeting from $147.60 down to $127.80. This equates to a notable 13.4% reduction, providing monetary relief to Homestead residents.
Homestead’s commitment to providing affordable energy is further evidenced by its standing in the statewide Florida Municipal Electric Association Bill Comparison Report. Currently ranked 19th out of 37 Municipal and Investor-Owned electric utilities in the state, Homestead's rates are notably below the average for Investor-Owned utilities and in line with the average for Municipally Owned utilities. With this upcoming change, Homestead will rank as the 7th lowest energy bill in the state, underscoring its dedication to offering competitive rates to its residents. Notably, Homestead's energy bills will be an impressive 14.7% below the municipal average, reaffirming its position as a leader in providing cost-effective utilities.
Homestead continues to surpass neighboring utilities in affordability, maintaining lower rates than FPL. This reduction not only benefits residents but also reinforces Homestead's position as a desirable location for families and businesses seeking more affordable living costs.