GRU Authority reduces GFT by $1.5 million, increases usage for lowest electric rate tier from 850 kWh to 1,000 kWh

BY JENNIFER CABRERA

GAINESVILLE, Fla. – At their December 11 meeting, the GRU Authority reduced the FY24 General Fund Transfer by almost $1.5 million, announced that electric rates will not increase through 2027, and increased the usage billed at the lowest residential electric rate from 850 kWh to 1,000 kWh.

FY24 General Fund Transfer reduced by almost $1.5 million

During public comment on the consent agenda, multiple people objected to an item reducing the remaining FY24 General Fund Transfer from $3 million to $1,488,897 to recoup expenses for County streetlights and legal fees to defend the Authority against lawsuits from the City.

Jim Konish thought they were not recouping enough, but City of Gainesville Finance Director Dennis Nguyen said the City “strongly disagrees with GRU’s unilateral decision to impose these deductions… The City should not bear responsibility for GRU’s financial obligations. Such actions undermine the intent and structure of the General Services Contribution, creating an inequitable burden on General Government without proper justification or mutual agreement.” Nguyen said the City “intends to engage with the County to explore a better path forward regarding these streetlight costs and seeks additional discussion with GRU concerning legal fees charged to General Government… We recommend awaiting current litigation before establishing a precedent where GRU can compel General Government to accept expenditures by manipulating the GSC.”

Chuck Ross also agreed that the GFT item should be pulled from the consent agenda for discussion.

The consent agenda passed unanimously, including the GFT item.

No electric rate increases in 2026 or 2027

During CEO comments, CEO Ed Bielarski said he told staff that the budget should be developed under the assumption that there will be no electric rate increases in 2026 or 2027. 

Lower residential electric tier increased to 1,000 kWh

The board also adopted a resolution that changes the tiers for residential electricity billing, effective January 1, 2025; currently the lower-priced tier tops out at 850kWh per month, but under the new structure, the lower rate will apply up to 1,000 kWh per month. The price per kilowatt-hour will remain the same for the lower tier and will increase by about a penny for the higher tier. 

The change will result in a reduction of $4.13 per month for residential accounts that use exactly 1,000 kWh; accounts that use 850 kWh or less will remain the same, bills for accounts that use between 851 kWh and 1450 kWh will be slightly lower than under the current billing structure, and accounts that use more than 1,450 kWh will see higher bills.

According to the presentation at the meeting, 59% of customer accounts will pay an average of $2.23 less per month, 24% of customer accounts will pay the same, and 17% of customer accounts (those using over 1,450 kWh per month) will pay an average of $5.52 more per month.

Director Jack Jacobs pointed out that GRU is now “competitive with Clay Electric. Yes, we haven’t quite caught FP&L, but Clay Electric, we’re competitive with.”

Bielarski said the monthly bill for 1,000 kWH has gone down from $152 down to $140, mostly due to reduced fuel expenses, and “we want to get it lower. We want to get to the middle of the road… When people say, ‘You haven’t [decreased] the rate, you haven’t done anything’ – well, we’ve done a lot. The organization is subject to inflationary pressures that we’re absorbing in the workforce, and we’re continuing to try to be more efficient and absorb those over a period of time.”

Director David Haslam added, “The mess didn’t happen overnight, and we can’t fix it – it’s not light switch on, light switch off. There’s going to be some time involved. And for all the public comment that thinks that we don’t all want the absolute best for Gainesville and the best for this utility – that’s obscene.”

The new electric tiers passed unanimously and will take effect on January 1, 2025.