The Gainesville Regional Utilities (GRU) Authority unanimously voted Wednesday to change the tier structure and rates for residential electric customers.  

The changes will, based on 2023 customer data, lower the electric portion of bills for 59% of customers and cause no increase for another 24% of customers. For the 17% of customers who use more than 1,400 kilowatt hours (kWh) of electricity per month, the changes will result in an average increase of $5.52. 

GRU and other electric utilities have usage tiers. For GRU, the tiers split at 850 kWh. Customers using less than 850 kWh pay a lower rate, and customers using more than 850 kWh pay the higher tier 2 rate.  

The motion passed on Wednesday raises tier 1 to 1,000 kWh per month and keeps the same rate ($0.0846/kWh). However, the tier 2 rate increased to compensate, from $0.1121/kWh to $0.1213/kWh.  

Impact on monthly customer electric bill 

• If you use 900 kWh, your bill will lower $1.38  

• If you use 950 kWh, your bill will lower $2.75  

• If you use 1,000 kWh, your bill will lower $4.13  

• If you use 1,050 kWh, your bill will lower $3.66  

• If you use 1,100 kWh, your bill will lower $3.27  

• If you use 1,150 kWh, your bill will lower $2.74  

• If you use 1,200 kWh, your bill will lower $2.29  

• If you use 1,300 kWh, your bill will lower $1.37  

• If you use 1,400 kWh, your bill will lower $0.45  

• If you use 1,500 kWh, your bill will increase $0.47    

• If you use 1,600 kWh, your bill will increase $1.39    

• If you use 1,700 kWh, your bill will increase $2.31    

• If you use 1,800 kWh, your bill will increase $3.23    

• If you use 1,900 kWh, your bill will increase $4.15    

• If you use 2,000 kWh, your bill will increase $5.07    

• If you use 2,500 kWh, your bill will increase $9.67    

Ed Bielarski, CEO of the utility, said he asked the rates department if there was anything else GRU could do to lower rates for the majority of customers. The tier increase came back as an option, and Bielarski said it fits with the utility mission—ultimately, to be a utility the community can afford.  

“When people say you haven’t increased the rate, [but] you haven’t done anything—we’ve done a lot,” Bielarski said. “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.” 

At previous meetings, the GRU Authority noted that initial plans had electric rates rising until 2027. The authority came and decided not to increase rates in order to help customers while increasing debt payments. 

The change also aligns GRU with the standard used by other electric utilities, including the Orlando Utilities Commission, Duke Energy, Clay Electric Co-Op and Florida Power & Light. 

The Florida Municipal Electric Association also uses 1,000 kWh as the standard for comparing one utility’s affordability to another. Now that GRU’s tiers align with other utilities, that comparison will better reflect the true difference.  

According to the association, a GRU customer using 1,000 kWh in October 2023 would pay $142.12. Compared to other municipal and investor-owned utilities, GRU was fifth highest in the state for October 2023—behind Ocala, Blountstown, Duke Energy and Florida Public Utilities. 

After Wednesday’s vote, that same customer would pay $137.99, equivalent to ninth in the state using the same October 2023 numbers.