Lake Worth raised electric rates to cope with rising power costs

Lake Worth Beach could cut electric rate under these conditions

Chris Persaud, Palm Beach Post

A fee on Lake Worth Beach electric customers' bills, which city officials raised months ago in the face of an unexpected winter chill, is slowly bringing the city-owned utility out of a six-figure financial hole, fueling hope that the rate can be cut again.

The hike to the utility's power cost adjustment fee netted nearly $271,000 from its nearly 30,000 customers in March, the first month it was in place, a recent report shows. That's the largest amount collected in at least two years.

The utility buys fuel and energy with money it collects through the fee, and it also aims to build savings in case either of surges in energy prices or electricity demand. Lake Worth Beach is Palm Beach County's only city generating its own electricity.

City commissioners approved the increase Jan. 29, anticipating a spike in energy demand due to a giant blast of winter air. But commissioners also voted for the rate hike after data presented to them by utility director Ed Liberty showed energy purchases cost more than the power cost adjustment fee brought in.

The utility spent $1.2 million more than the fee collected during 2025. The power cost adjustment fee in 2025 rose from $24.38 per megawatt in January to $33.96 by the end of year, before reaching $40.96 in March this year. The fee mainly pays for natural gas and solar power.

While Lake Worth Beach gets less of its energy from natural gas compared to other places — about 32% during the first quarter of 2026 vs. 70% for Florida Power & Light Co. in 2025.

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