CFEC Announces July Rate Adjustment and Urges Members to Prepare for Hurricane Season

FOR IMMEDIATE RELEASE

Contact: Madison Redd

Communications Specialist

Central Florida Electric Cooperative

(352) 493-2511

mredd@cfec.com

CFEC Announces July Rate Adjustment and Urges Members to Prepare for Hurricane Season

CHIEFLAND, FL – June 2025 — Central Florida Electric Cooperative (CFEC) is announcing a rate adjustment set to take effect on bills issued in July 2025. The increase—approximately 9.7% for a typical 1,000 kilowatt-hour (kWh) residential bill—comes after nearly a decade of holding rates steady, and reflects the rising costs of maintaining and operating the electric system in today’s economic and storm-prone environment.

CFEC held base rates steady for nearly a decade, including a rate decrease in 2017 and only one modest increase of 2.08% in 2023. However, the financial pressure from inflation and storm damage has grown too large to absorb without impacting long-term system reliability.

Since 2019, the cost of critical components has soared: transformers by 171%, insulators by 157%, and poles and wires by over 60%. In 2024 alone, material and equipment cost increases added nearly $4 million to CFEC’s operating expenses. These increases, combined with more than $45 million in storm-related damages from Hurricanes Idalia, Debby, Helene, and Milton, have placed significant financial pressure on the cooperative. While state and federal reimbursements are in progress, they can take years to arrive. In the meantime, CFEC had to borrow funds to rebuild the system and restore power to members—adding more than $6.2 million in unreimbursed or interest-bearing costs.

To ensure fairness, CFEC engaged Energy Economics Consulting Corporation to conduct an independent rate study, with findings also submitted to the Florida Public Service Commission. The study confirmed the need for an adjustment to two components of the electric bill: the Basic Facilities Charge and the Energy Charge.

Even after this change, CFEC’s rates remain below the national average—and, as a not-for-profit cooperative, every dollar collected is reinvested in the system or returned to members.

A Timely Reminder: Prepare Now for Hurricane Season

The rate announcement also comes at the start of the Atlantic hurricane season. While no one wants to face another round of damaging storms, CFEC reminds members that preparation is critical—not just for the cooperative, but for every household and business.

CFEC prepares months in advance to respond quickly when storms strike—by staging critical materials and backup generators, coordinating mutual aid with other utilities, hardening infrastructure through inspections, and training its dedicated, battle-tested crews for storm response and safety.

The cooperative also urges members to take simple steps now—before a storm is on the horizon—to stay safe and reduce potential damage. That includes updating contact information to receive timely alerts, reviewing family storm and evacuation plans, assembling or restocking an emergency kit, and safely trimming trees or checking outdoor equipment for hazards.

Members who rely on electrically powered medical devices should enroll in Florida’s Special Needs Registry, yet understand that this does not guarantee priority restoration after a major storm; they must have an evacuation or backup-power plan in place for the possibility of extended outages.

A full hurricane-prep checklist, links to the Special Needs Registry, and additional resources are available at www.cfec.com, located under the “Outage Center” tab.

Working Together, Weathering Whatever Comes

Whether it’s preparing for hurricane season or making tough financial decisions, CFEC remains focused on what matters most—its members. As a not-for-profit cooperative, every decision is made with the long-term needs of the community in mind. This rate adjustment, like all CFEC efforts, is about more than keeping the lights on today—it’s about ensuring we can continue serving our community reliably for years to come.

CFEC is committed to providing safe, reliable power while doing everything possible to keep costs reasonable and service dependable—even in the face of rising costs and unpredictable storms. Through every challenge, the cooperative’s mission stays the same: to serve with integrity, transparency, and a strong sense of responsibility to the people and communities we power.

For more information about the rate adjustment or hurricane preparation resources, visit www.cfec.com or call (352) 493-2511.