Central Florida Electric Cooperative Initiates Hurricane Idalia Recovery Cost

Chiefland, FL - (April 30, 2024) In late August 2023, Hurricane Idalia hit the CFEC service area as a strong category 3 hurricane – resulting in catastrophic storm surge for our coastal areas and widespread damage across the service area from severe winds and flooding, ultimately causing more than 25,000 power outages (over 92% of CFEC meters). Despite the extensive damage, CFEC worked day and night, with additional resources from outside contractors, neighboring cooperatives, and nearby municipalities, to have over 95% of those 25,000 power outages restored in just four days. A restoration effort of this magnitude and speed comes at no small cost – with the Cooperative responsible for repairing almost $10 million in damages because of Idalia.

While most of these costs will eventually be reimbursed to the Cooperative by the Federal Emergency Management Agency (FEMA), a portion of this large sum falls on CFEC to repay. In addition, the Co-op must also cover the cost of interest on these large storm repair debts until FEMA reimbursements are made – likely in late 2025. Currently, we anticipate that the Co-op's nonreimbursable and interest expenses amount to approximately $1.8 million. To help cover some of these unavoidable costs, the CFEC Board of Trustees has approved a Hurricane Idalia Recovery Cost of $0.00336 per kilowatt hour, which is expected to take effect May 1, 2024.

Members using 1,000-kwh per month – the CFEC average – will see a $3.36 increase to their monthly electric bill. Members who only use 500-kwh per month will see a $1.68 increase. All other members and commercial accounts will see no more than a 2% increase. The Hurricane Idalia Recovery Cost will appear as a separate line item on your CFEC bill. This charge will only stay in effect until CFEC has recovered the non-reimbursable and interest costs associated with Hurricane Idalia.

CFEC is a not-for-profit utility that is owned by the members it serves. It always has been, and always will be, CFEC’s goal to provide the highest quality electric service at the least cost possible. Rates are designed not to make a profit, but simply to cover the costs of providing electricity. The CFEC Board of Trustees and staff work hard to maintain costs and provide affordable electricity, but the unexpected costs of a major impact like Idalia make the Hurricane Idalia Recovery Cost unavoidable. CFEC is committed to maintaining a financially strong Cooperative while providing safe and reliable electricity at an affordable price.

If you have questions concerning the Hurricane Idalia Recovery Cost and how it may affect your CFEC bill, contact CFEC at (352) 493-2511 or by email at rkrefting@cfec.com.