Understanding Your Bill
PRECO charges you for the amount of electricity you use.
We calculate your bill by multiplying the amount of electricity you use (measured in kilowatt-hours) by the price of electricity (charge per kilowatt-hour). The Facilities Use Charge reflects the monthly costs associated with providing power to you, whether or not you use any electricity. Any increases or decreases in fuel costs are passed on to our customers through the cost of power adjustment (CPA).
Other charges include any optional services you may have (such as outdoor lighting or surge suppressor equipment), taxes and fees.
Price used to calculate your bill. Our rates can be found here.
Facilities Use Charge
The facilities use charge is included on each bill, regardless of how many kilowatt-hours are used during a billing period. The fee recoups a portion of the costs associated with delivering power to your home, such as depreciation expense, interest, poles, wire and maintenance. Other costs include meter reading, billing, maintaining customer records and additional administrative costs.
The amount of electricity used multiplied by the applicable electric rate(s).
Cost of Power Adjustment (CPA)
Reflects the co-op’s cost to purchase power wholesale from Seminole Electric Cooperative, our power provider. It is revised periodically to reflect any increase or decrease in the power cost.
Fees and taxes charged by state and local government agencies are collected and submitted to the appropriate agency. The State of Florida Gross Receipts Tax applies only to electric charges.
Municipal Franchise Fee
In Florida, governments have the authority to impose a franchise fee as a means to collect additional operational funds. The franchise agreement grants a utility the right to use rights-of-way for facilities such as poles and wires, and a fee is assessed to all customers in the impacted areas receiving service from the utility. PRECO collects the fee and submits the payments to the appropriate governmental organization.
Public Service Tax
In Florida, governments have the authority to levy a tax on the purchase of electricity, gas, water and telecommunication services. A public service tax (PST) of up to 10% can be imposed to generate revenue for municipalities. Utility providers are obligated to collect the tax and remit ongoing payments to the governmental agency.
Demand measures the maximum amount of power (kW) you require each billing period during PRECO’s peak hours, when our costs are higher.
A measurement of electrical energy. A kilowatt-hour equals 1,000 watts of energy used for one hour. One 100-watt light bulb burning for 10 hours consumes one kilowatt-hour.
For accounts that use large amounts of electricity, the meters may not register electricity use by single kilowatt-hours. They may register electricity use by tens or hundreds of kilowatt-hours. The meter readings must be multiplied by a specific factor, the multiplier, to determine actual consumption. Most residential electric meters have a multiplier of 1.
Operation Round Up
If you participate, your current charges are rounded up to the next dollar and held in a charitable fund. The funds are then used to help qualified individuals, families and organizations in PRECO’s local 10-county service territory. Visit our Operation Round Up page to learn more.