Lake Worth Beach Electric Utility Rates vs FPL: Home Costs

Buyers comparing homes often ask a seller for a year of electric bills. In Lake Worth Beach, that stack of bills now reflects prices that no longer exist. The city raised its fuel charge on March 1, 2026, and on October 1 it raised its base rates. So a winter bill from last year, repriced at today's rates, comes out noticeably higher for the same kilowatt-hours.

The more useful finding concerns how the bill grows. The City of Lake Worth Beach runs its own electric utility, and the Palm Beach Post describes it as the only city in Palm Beach County that generates its own electricity. Its residential tariff charges much more for every kilowatt-hour past the first 1,000 than for the first 1,000. FPL does the same, but its step up is smaller. Compared with a similar home in FPL territory, a modest bungalow in the city's system pays a little more each month. A larger home, a pool home, or any house running central air hard through a South Florida summer pays a lot more.

The Second Thousand Kilowatt-Hours Is Where the Gap Opens

Under the rate schedule effective October 1, 2026, a Lake Worth Beach residential customer pays a $13.32 monthly customer charge. The first 1,000 kWh cost 12.801 cents each, made up of 8.705 cents of base energy and a 4.096-cent Power Cost Adjustment. Every kilowatt-hour after that costs 16.323 cents. A $5 monthly Storm Fund Surcharge, in place since December 1, 2024, applies to every account.

FPL's residential tariff marked effective October 2026 lists a $10.52 base charge. Adding up its energy, fuel, conservation, capacity, environmental, storm protection, and transition credit components gives about 12.258 cents per kWh for the first 1,000 and 14.258 cents above that.

For the first 1,000 kWh, the two rates differ by about half a cent. Above 1,000 kWh, they differ by more than two cents. Here is what that does to monthly totals. These figures are calculated from each utility's published October 2026 rates and leave out taxes and other fees:

The gap more than doubles between 1,000 and 2,000 kWh. For a buyer choosing between a compact cottage east of Dixie and a larger home with a pool, the purchase price covers only part of the difference. The bigger house also lands mostly in the tier where the city's rate is furthest above FPL's.

These are tariff subtotals for the same month, and they shouldn't be read as all-in bills. For context, the Florida Public Service Commission projected in November 2025 that FPL's all-in 1,000 kWh residential bill would be $136.64 starting in January 2026, including gross receipts tax. That is a different measure from a different period.

Why the Price per Kilowatt-Hour Moves Every Quarter

About a third of the city's per-kWh charge is the Power Cost Adjustment, and the PCA isn't fixed. The city's schedule says it is set for a projected three-month period. The formula adds up projected purchased power costs, including the FMPA Stanton 1 plant, the FMPA Municipal Solar Project, supplemental purchases, fuel for the city's own generation, and transmission. It then adds a true-up for any over- or under-collection in the prior period, adjusts for transfers to or from a Rate Stabilization Fund, and divides by projected sales.

In plain terms, when natural gas gets expensive, Lake Worth Beach customers feel it within a quarter. Last winter showed how fast that happens. The Lake Worth Beach Independent reported that at the January 29, 2026 City Commission meeting, as a cold snap approached, utility director Ed Liberty described gas prices jumping far above normal. "We normally pay under $5 (per million BTU). It's over $50 for the weekend," he said. According to that report, about half the electricity sold to the utility's customers comes from natural gas, and the PCA fund had run a $102,000 deficit in December. Liberty asked for a PCA increase of $6.44 per megawatt-hour. Commissioners approved $7 because gas prices were so uncertain. The Palm Beach Post also covered the vote, which affected roughly 28,000 customers.

That increase took effect March 1, 2026, according to a later city staff report. Before the vote, the city's worksheet put the residential PCA at 3.396 cents per kWh in the first tier and 4.396 cents above 1,000 kWh. Add $7 per megawatt-hour to those figures and you get 4.096 and 5.096 cents, which are the PCA values on the current schedule.

By May, the Post reported that the higher fee was slowly pulling the utility out of a six-figure hole, which raised hopes that the rate could come down. The latest public discussion points the other way. On September 25, Liberty told commissioners that the "basis," the gap between the hub price for natural gas and the price delivered to the power plants, had widened. He said this was putting upward pressure on the PCA, according to a Citizen Portal summary of the meeting. Nobody voted on a rate change that night.

Base Rates Rose on October 1 for a Separate Reason

The PCA covers fuel. The base charges cover running the utility, and those went up as well. On September 10, 2026, the City Commission unanimously approved Resolution No. 41-2026 by voice vote, according to the meeting minutes. The staff report explains a 3% increase in base energy, customer, and minimum bill charges. The goal is to rebuild the utility's working capital gradually, over several years, until it equals six months of operating and maintenance expenses. The resolution applies to bills issued on or after October 1, 2026.

That matters for anyone comparing numbers. As of mid-October, the city's public rate page still showed the previous figures: a $12.93 customer charge and 8.451 cents of base energy in the first tier. A buyer who builds an estimate from that page will come in low.

The utility also sends money to the rest of city government, which helps explain how the city sets rates. The FY2027 budget materials propose a $4,639,093 contribution from the electric utility to the general fund, calculated as a share of the utility's budget. They also propose a separate $2,755,695 administrative charge that reimburses general fund departments for services they provide to the utility. The general fund also projects $4,521,764 in electric franchise fee revenue and $2,100,000 from utility services taxes on electricity. In FPL territory, rates are set in statewide proceedings before the Public Service Commission. In Lake Worth Beach, the City Commission sets them in the same budget hearings that fund local services. That makes rate decisions easy to follow on the meeting calendar.

The Address Sets the Tax Line

The city's system reaches beyond its borders. The utility's annual report says it serves 27,809 customers across the city, unincorporated Palm Beach County, and the Village of Palm Springs. So a Lake Worth mailing address alone doesn't tell you which utility serves a property. The city offers a utility service area lookup by address and parcel.

For customers outside city limits, Resolution 41-2026 charges the same rates as in-city customers plus any taxes and fees required by the jurisdiction where the account is located. The city collects those and passes them to that county or municipality. That means two homes on the same rate schedule can see different tax lines. Florida law caps a municipal public service tax on electricity at 10% under Section 166.231, Florida Statutes. The state's gross receipts tax on utility services is 2.5% on retail electricity sales. Taxes and fees vary by address, which is one reason the table above leaves them out. The post is general information and not tax or financial advice. Confirm how these rules apply to a specific property with the appropriate professional.

Repricing a Seller's Bills for Today's Rates

Here is a worked example using the city's published rates. Under the base rates in place before October and the fuel charge in place before March 1, a 1,000 kWh month came to about $136.40 before taxes. Today the same usage comes to $146.33. At 2,000 kWh, the same comparison runs from about $289.36 to $309.56. The bill rose by roughly a dollar for every 100 kWh of usage, and the homeowner changed nothing.

To turn a seller's bill history into a usable estimate:

1. Ask for monthly kilowatt-hours. The dollar totals are tied to rates that have since changed.
2. Count how many months went over 1,000 kWh. Those months sit in the 16.323-cent tier, where the gap with FPL is widest.
3. Reprice each month at the October 1, 2026 schedule. Expect the PCA to move again at the next quarterly reset.
4. Run the address through the city's service area lookup to confirm the provider and which jurisdiction's taxes apply.

A Few Questions That Come Up

Has the city utility always cost more than FPL? Not by its own historical measure. The city's annual report put its 2024 bill for 1,000 kWh at $114.66 and ranked it seventh-lowest of 37 Florida utilities that year. Those figures are from before both 2026 increases, so they describe a different rate period.

Is a fuel charge cut coming? None has been scheduled. In September, the utility director described costs pushing the PCA up, not down.

What protects customers from fuel price spikes? The PCA formula draws on a Rate Stabilization Fund. In February 2024, the city said the fund held $3.5 million after a transfer approved that January.

If you're weighing homes inside and outside the city's electric service area, The Don Moore Team can help you reprice a seller's usage history at the current schedule as part of your comparison. Request a Confidential Market Consultation, and bring the addresses you're considering.