LEESBURG, Fla. — Leesburg is raising utility rates for natural gas and electricity after a historic freeze resulted in combined losses exceeding $3.3 million.
As Leesburg operates a not-for-profit public utility, it must adjust rates if fuel prices exceed budget estimates to fund daily operations.
The City stated that natural gas prices rose sharply during the freezing weather. Normally, fuel costs about $3 per dekatherm, but during the cold spell, prices soared to over $50 per dekatherm.
The Electric Utility is raising its Bulk Power Cost Adjustment by $0.03 per kilowatt-hour. Consequently, a residential customer using 1,000 kilowatt-hours will see the consumption charge go up from $130.47 to $137.97.
Officials stated that adjusting fuel costs helps the city resell energy at a steady low price while covering daily operating expenses. Management noted that these spikes occurred due to weather conditions combined with other global factors.
The price increase caused major losses for the city. As of Jan. 31, the Natural Gas Utility reported a fuel loss of nearly $1 million. During the same period, the Electric Utility recorded losses of around $2.3 million.
To recover these costs, the Gas Utility increased the fuel portion of its rate structure by $0.15 per therm. This change went into effect on Feb. 1, 2026. For a customer using 16 therms, this results in a monthly increase of approximately $2.50.
The Electric Utility rate will rise on March 1, 2026. Officials anticipate the natural gas market will stabilize as weather normalizes, returning prices to pre-freeze levels, which will be reflected in bills.
Click here to download our free news, weather and smart TV apps. And click here to stream Channel 9 Eyewitness News live.