LP&L logo

Rates

LP&L is proud to offer low, competitive rates to our customers.

Your Electric Bill Explained

  1. Service Availability – the monthly flat cost per meter that goes toward all meter reading and maintenance, customer service and billing
  2. Energy Usage (kWh) – Also referred to as the “base rate.” The cost for delivering electricity to your home and for operating and maintaining the system.
  3. Energy Demand (kW) – amount necessary to support electrical infrastructure to meet the peak demand for electricity.
  4. Power Cost Recovery Factor (kWh) – Also known as PCRF; the actual cost LP&L pays to purchase and generate electricity, passed through to customers with no mark-up.
  5. Franchise Fee – the amount paid to the City in order for LP&L to place distribution lines and meters in the public right-of-way.
  6. Taxes – applicable City (1.5%), County (0.5%) and State (6.25%) tax – most residential customers have a city tax rate of 1.5%, while most commercial customers have a City, County and State tax, totaling 8.25%.

Rates FAQs

What is rate stabilization?
How does rate stabilization work?
How is LP&L planning for the future?