No, Ocala Electric Utility (OEU) is considered a distribution utility that purchases power for their customers. Distribution utilities make up 67% of all utilities in the country. As a public power utility we serve at cost; returning excess funds to the consumers in the form of community contributions and reduced rates. Most municipals distribute power, although some large ones produce and transmit electricity; they are financed from municipal treasuries and revenue bonds.

The power we sell is produced by power plants using natural gas or other fuels. The PCA portion of your bill is based on the cost of purchasing the fuels that are converted into electricity you use every day.

OEU provides free online home energy audits using MyEnergyPlanner. There are also commercial vendors in the private sector that perform energy audits. We recommend that you compare the cost and services provided.

FMPA is a wholesale power company created and operated by municipalities across the state. The purpose of FMPA is to leverage numbers to achieve equal footing on the cost of generating or purchasing power.

Ocala Electric Utility is a municipal utility with each utility service detailed on your monthly statement. Electric is just one of the services provided to the citizens within the City. This often gives the impression that our utility bills are higher, when in fact what customers are seeing includes charges for other municipal services. For OEU customers outside of the City, the electric is normally the only service provided with other utilities being provided through private vendors and/or county taxes. Consumption is also a major factor contributing to the cost of monthly service. The amount of energy and water consumed varies based on the efficiency of equipment, building envelope (home structure), and lifestyles.

There are 3 main elements to your rate:

1. The electric service charge, a monthly base charge that covers meter reading and billing.
2. The Energy Charge, a cost per kilowatt hour to purchase, distribute, and maintain power to our customers.
3. Power Cost Adjustment, the fuel cost portion of the electric bill.

Rates are established based on a review of total costs, usually performed by an outside consultant. The consultant’s recommendations are submitted to City Council for approval. All changes to our rates must be approved by City Council and filed with the state Public Service Commission.

Trees growing near power lines are one of the primary causes of momentary and sustained power outages. To ensure that we are providing safe and reliable service to our customers, OEU implements a comprehensive vegetation management program.  We prune and remove hazardous trees around approximately 200 miles of lines each year.