While a neighboring utility that depends on fuel oil and natural gas is preparing to cut electric rates due to lower fuel costs, customers of Beaches Energy, which relies mostly on natural gas, will not be seeing any savings.

The good news, though, is that no rate increases for the Beaches utility are planned in December or January.

Beaches Energy serves Ponte Vedra Beach, Jacksonville Beach and Neptune Beach. Residents in Atlantic Beach are served by JEA.

Beaches Energy, owned by the city of Jacksonville Beach, announced this fall that it would be tweaking its bulk power cost adjustment (BPCA) monthly, if necessary, to reflect rapidly changing power costs.

Glenda Wagner from Beaches Energy explained that the utility's power costs can increase or decrease due to volatility of natural gas prices.

"The power cost is a pass-thru cost from our power supplier," Wagner said. "There is no mark-up in the power cost and these funds do not provide any additional income for Beaches Energy."

She explained that when the price of oil increases, the cost of gasoline for cars increases right away.

"But when the price of natural gas and coal increases, we do not immediately increase electric rates. Beaches Energy recognizes that increases in electric bills are a concern for our customers, so we only adjust the power fuel cost when it becomes absolutely necessary," Wagner said.

Florida Power & Light Co., which serves Nassau County, has recently filed proposals with the state to reduce its customers' bills to reflect lower fuel costs, meaning 1-3 percent lower bills. The change will drop the utility's rate to $109.55 per 1,000 kilowatt hours. Beaches Energy charges $129.97 per 1,000 kilowatt hours. JEA’s rate is $122.02.

Wagner noted that currently 33 electric utilities in Florida have rates higher than Beaches Energy.

Elsewhere, the Public Service Commission recently approved rate increases for four major electric utility companies in Florida. In January 2009, Progress Energy of Florida, Tampa Electric Company, Gulf Power Company and Florida Public Utilities will increase residential rates ranging from 11 percent to 25 percent.

Wagner said the city’s Tidings newsletter, which accompanies all electric bills, will be used to notify residents in the event the BPCA is changed.