Learn How OUC Electric Bills and Payments Work

Understanding OUC's Service Area and Customer Types

OUC – The Illuminating Company serves customers throughout central Florida, primarily in Orange, Osceola, and Seminole counties. The utility company operates as a municipal electric provider, meaning it is owned by the City of Orlando rather than being a private corporation. This structure affects how rates are set and how customer service operates.

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OUC serves several types of customers, each with different billing structures and rate schedules. Residential customers make up the largest portion of OUC's customer base and pay rates designed for single-family homes and small multi-unit dwellings. Commercial customers include small businesses, offices, retail stores, and restaurants. Industrial customers are large manufacturers and processing facilities that use significant amounts of electricity. Each customer type receives a different rate schedule based on their usage patterns and consumption levels.

Understanding which customer category you fall into matters because it determines your rate structure, how demand charges are calculated, and what programs may be relevant to you. Residential customers typically pay a simpler rate structure with a base charge plus a per-kilowatt-hour rate. Commercial and industrial customers face more complex billing that may include demand charges, time-of-use rates, and power factor adjustments.

OUC also serves customers on fixed-rate plans and variable-rate plans. Most residential customers are on standard rates that change according to OUC's rate-setting process, which happens annually. Some commercial customers may negotiate special rates or participate in demand response programs that offer different pricing structures.

Practical Takeaway: Look at your bill's header section to confirm which customer class OUC has you listed under. If your business operates under a different classification than what appears on your bill, contact OUC to discuss whether your rate schedule matches your actual usage pattern.

Breaking Down Your Monthly Electric Bill

An OUC electric bill contains several distinct components that together make up your total amount due. Understanding each part helps you see where your money goes and can reveal opportunities to reduce consumption in high-cost areas.

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The customer charge, also called the base charge or service charge, is a fixed monthly fee that every customer pays regardless of how much electricity they use. This charge covers the cost of maintaining the meter, reading it monthly, processing your bill, and maintaining the distribution lines to your property. For residential customers, this charge is typically between $12 and $15 per month, though it may vary based on your rate schedule and account type.

The energy charge is calculated by multiplying your kilowatt-hour consumption by the applicable rate. OUC measures your electricity use in kilowatt-hours (kWh), which represent 1,000 watts of power used for one hour. If you run a 100-watt light bulb for 10 hours, you have used 1 kilowatt-hour. This is the largest component on most residential bills and is where you have the most control through conservation efforts.

Many OUC customers also pay fuel and purchased power charges, which reflect the actual cost OUC pays to generate or purchase electricity. These rates fluctuate based on fuel prices, natural gas availability, and market conditions. You will see this listed separately on your bill as an adjustment to the base energy rate.

Taxes and surcharges appear on every OUC bill. These typically include utility taxes imposed by the City of Orlando and Seminole County, environmental compliance charges, and storm hardening surcharges. These are not optional and are set by local government requirements.

Commercial and industrial bills include additional components like demand charges, which are based on your peak usage during any 15-minute period within the billing month, not just your total usage. A business that runs all its equipment at once for even 15 minutes may pay a demand charge based on that peak, regardless of whether it uses that much power consistently throughout the month.

Practical Takeaway: When you receive your bill, compare the energy charge (kWh used multiplied by rate) to last month's bill. If your usage increased significantly without explanation, check for equipment failures, increased occupancy, or seasonal changes before calling OUC.

OUC's Rate Schedules and How Rates Are Determined

OUC maintains different rate schedules for different customer types, and rates change on an annual basis. The utility company typically adjusts rates once per year, usually in the fall or early winter, to reflect changes in operational costs, fuel prices, and infrastructure investments.

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Residential customers are served under the Residential rate schedule, which includes a base customer charge plus an energy charge per kilowatt-hour. As of recent years, the energy rate for residential customers has been approximately $0.12 to $0.14 per kilowatt-hour, though this varies based on current rate schedules and any recent rate adjustments. The exact rate you pay depends on when your bill is issued, as OUC implements rate changes on specific effective dates throughout the year.

Small commercial customers use the General Service rate schedule, which includes a customer charge, an energy charge, and typically a demand charge. The demand charge is based on the peak kW your business uses during any 15-minute interval in the billing period. For example, if a small office's peak demand is 15 kW, it pays the demand charge based on 15 kW for the entire month, even if it only reaches that level one day.

Large commercial and industrial customers use specialized rate schedules such as Large General Service or Industrial Service. These schedules include components like time-of-use rates that charge different amounts during peak hours versus off-peak hours, power factor corrections that adjust bills based on how efficiently equipment uses electricity, and ratchet clauses that set a minimum demand charge based on peak usage during any three-month period.

OUC's rates are determined through a formal rate-setting process. The utility company files a rate case with the Public Service Commission of Florida (PSCF), which reviews OUC's operating costs, capital investments, and return on investment. OUC may also hold public hearings where customers can comment on proposed rate changes. The PSCF evaluates whether the proposed rates are fair, reasonable, and sufficient to cover OUC's costs while allowing the utility to maintain service quality and make necessary infrastructure improvements.

Rate changes affect residential and commercial customers differently. A rate increase might mean a residential customer pays an additional $5 to $10 per month, while a large commercial customer could see increases of hundreds of dollars per month depending on their consumption and demand patterns.

Practical Takeaway: Visit OUC's website or call their customer service to confirm which rate schedule applies to your account. Ask when your next rate adjustment takes effect, so you can anticipate changes to your bill. For commercial customers, review whether time-of-use rates or demand reduction programs might lower your costs.

Payment Methods, Due Dates, and Late Payment Penalties

OUC provides customers with multiple options for paying their electric bills, offering flexibility based on individual preferences and circumstances. Understanding these payment methods and the associated timelines helps you avoid late fees and maintain consistent service.

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Bills are typically due 20 to 25 days after the bill date, depending on your specific account setup. OUC issues bills on a rolling schedule, meaning not all customers receive bills on the same day of the month. Your bill date appears on your statement, and that is the reference point for calculating your due date. If your bill shows a due date of the 25th, payment must be received or postmarked by that date to avoid late payment fees.

OUC offers payment through several channels. Online payment through OUC's website allows you to pay from your checking or savings account using electronic transfer. This method is typically free and offers the fastest processing. Automatic payment arrangements allow you to authorize OUC to withdraw payments from your bank account on a set schedule, which ensures you never miss a due date. Paper check payments can be mailed to OUC's payment processing center; these typically require 5 to 7 business days to process, so you must mail checks well before the due date to avoid late fees. In-person payment is available at OUC's customer service offices and at authorized payment locations throughout central Florida.

Late payment penalties apply if your bill remains unpaid after the due date. OUC typically adds a late payment charge of 1.5% of the unpaid balance. If payment is 10 or more days late, this penalty is applied. Repeated late payments can result in account suspension or disconnection of service.

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