In communities across our service area, SECO owns the communal outdoor area lighting and provides valued services through agreements with “governing bodies” such as homeowners’ associations, community development districts, and municipalities.
There are some misconceptions around what these area lighting components entail in terms of maintenance, servicing, and the associated fees. This page is intended to provide facts about the systems and address questions about recent changes to logistics and fees.
As shown in the image below, area lighting systems are made up of three main sections: fixtures, poles, and underground components.
SECO Energy maintains and services all three sections of the area lighting systems. Services include repairing damages, replacing outdated parts, and storing necessary supplies to maintain the systems.
1. Why is the price of area lighting increasing?
There are two primary reasons for the recent increase in rates extended to some governing bodies. First, premium fixtures and poles cost more to maintain and repair than standard fixtures and poles. In recent years, the costs involved in maintaining these premium poles and fixtures have increased.
Second, a recent cost-of-services study concluded that SECO members who benefit from communal area lighting were not being charged the full cost of SECO providing the area lighting service that includes maintenance, repairs, and inventory. To address this finding in the cost-of-services study, SECO re-assigned the billing associated with these premium selections to the entities who chose them.
We have a responsibility to each member to operate their utility as equitably as possible. This means that those with premium area lighting fixtures and poles are responsible for the cost of their premium amenities.
After receiving feedback from community leaders, SECO approved implementing the pole service fee increase over the next two years to equitably distribute the cost of the premium fixtures to those who benefit from them. The first half of the needed increase will be administered in October 2024 and the last half will be implemented in October 2025.
2. Why did SECO install area lighting in my community?
Communities with a master plan are designed by a developer. The developer chooses the location of the streets, houses, walking paths, and other amenities before houses are built. The developer also chooses the number and location of area lighting in the community.
3. Are there alternative options for my community?
Communities may consider purchasing the lighting systems and accept responsibility for area light repairs and maintenance. SECO Energy will meter kilowatt-hour consumption. This process will require multiple levels of regulatory approval and can be discussed further should governing bodies wish to pursue this option.
4. How did we get here?
Central Florida is one of the fastest growing parts of the country. We are adding electric services and infrastructure, including area lighting, to meet this demand. We work with residential and commercial developers to provide the type and quality of lighting that will meet their design standards, and then maintain and repair those assets as a service.
Over time, the cost of maintaining these area lights has grown significantly, without an increase in fees charged to the communities that collectively pay for them. We discovered the true extent of this difference earlier this year as part of a Cost-of-Services Study.
5. Is the kWh price of energy I use in my home increasing on October 1, 2024?
No, the increase dated on the October 1, 2024, Rate Tariff is an increase in the price of area lighting (fixtures and poles). These are usually billed to HOAs, governing bodies, and municipal organizations.
6. What is a Cost-of-Services Study?
A Cost-of-Services Study is an in-depth analysis that determines the actual costs of providing specific services, in this case, area lighting. The study ensures SECO’s fees reflect the true cost of service, promoting fairness, and equity among members.
7. How will I be affected?
SECO does not determine how the affected HOAs, municipalities, and community development districts will pass through the increase. However, you will likely see a change in your HOA dues or community maintenance fee. For the average homeowner, this could amount to about $5 per month (prior to the change, affected members were paying approximately $1.95 per month). Residential services with a single area light (not billed collectively through an HOA, municipal entity) were paying just over $8 per month.
8. Why is this increase happening now?
SECO is obligated to treat all its members equitably and apply fees for services to members who benefit from said service. SECO decided initially to delay implementing the increase until October 2024 to better align with budgeting cycles of affected governing bodies. Later after receiving feedback from community leaders, SECO approved implementing the increase over the next two years – the first half of the needed increase will be administered in October 2024 and the last half will be implemented in October 2025.
9. Why can’t it stay the way it is?
SECO is a member-owned, not-for-profit utility. This means that our consumers are all SECO Energy members. We have a responsibility to all members to operate the utility as efficiently and as equitably as possible.
10. What are you doing to help?
After receiving feedback from members and community leaders, our team implemented a two-year phase in to lessen the impact of the increase.
We understand that budgeting for these changes can be challenging, so we are offering estimated quotes upon request to help you plan accordingly. If you need assistance in estimating the impact of the new rates on your budget, please reach out to us.
SECO actively applies for federal grants to offset its capital cost for maintaining our electrical system and to keep pace with the rapid growth in the region. While we don’t account for these before we are sure of success, grant funding could provide relief by reducing SECO’s cost. As a not-for-profit entity, any reduction in our costs benefits our members.
11. What’s next?
SECO will continue to monitor the cost of providing area lighting services and adjust fees that are reflective of current costs. We’ll also work with you and your community to be sure the lines of communication stay open.
12. What will happen with the LED transition? Will that cost be included in this increase?
Due to federal regulations, we have begun converting our lighting system from high-pressure Sodium (HPS) to LED lighting. Generally, both historical costs and projected future costs are used in determining rates/fees. Because of the federal mandate to transition to LED lighting and the sunset of HPS light manufacturing, SECO included anticipated LED lighting upfront cost, energy consumption and maintenance costs to determine the cost of service which support the determination of new area lighting fees.
The Department of Energy has produced several reports on efficiency and longevity of LED lighting. We are happy to direct you to these reports to learn more.
Contact SECO Energy with additional questions.
