DEMCO answers questions about upcoming increase in cost of electricity and more



GREENWELL SPRINGS, La. (BRPROUD) – DEMCO customers are paying more for their power and the utility company is providing answers about why this is happening now.

Customers are also seeing a new setup on their bill.

These topics were covered in a letter sent to DEMCO customers by CEO and General Manager Randy Pierce.

A copy of that latter can be found below:

Dear Member,

I am writing to you today about three issues.

First, DEMCO recently transitioned to a new software system that ultimately will better serve our members. In the short term, it has created significant changes in the way DEMCO performs virtually every task on behalf of our members. Please be patient as we know you are affected. We sincerely apologize for the inconvenience during this transition. DEMCO is refining the new software and our staff is learning more about it every day. We will continue to do all we can to work more efficiently and swiftly as we navigate through these changes.

One of the most frequently asked questions about the new software is about the new section of the bill labeled “Current Service Detail”. These line items are not new or additional charges – they have always been included in the monthly total. An example of this is PCA (power cost adjustment). Learn more in the “Explanation of Line Items on the Billing Statement” and “What is the Power Cost Adjustment (PCA) item on my electric bill” sections below.

The second issue I want to make you aware of today is that the cost per kilowatt-hour (kWh) of electricity for the next couple of months will be quite a bit higher than normal due to a significant increase in the cost of wholesale power. This increase in power costs is solely due to power generation decisions made by our major wholesale power supplier, CLECO Power. CLECO Power is also continuing to bill DEMCO for costs associated with winter storm Uri earlier this year. DEMCO’s distribution costs are virtually the same from month to month. The cost of wholesale power, which is 60 to 65 percent of your electric bill, is a cost that fluctuates each month and is passed through to our members from CLECO Power.

For ideas on how to lower your electric bill, visit Energy Use and Your Bill.

Third, effective Wednesday, Aug. 4th, DEMCO will adhere to the statewide mask mandate issued by Governor John Bel Edwards. “I am reinstating Louisiana’s statewide mask mandate indoors, including in schools to protect our children who are too young to be vaccinated and our teachers and staff,” Gov. Edwards said. The indoor mask mandate applies to anyone age five or older in all public places in the state, including K-12 schools, regardless of whether people have the COVID-19 vaccine or not. DEMCO will continue to comply with the Governor’s directives as we all work to slow the spread of COVID-19.

Randy Pierce
CEO and General Manager

If you are a DEMCO customer and your questions were not answered above, call 1-844-693-3626.

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