GREENWELL SPRINGS, La (BRPROUD)- DEMCO CEO and General Manager Randy Pierce released a statement explaining to its cooperative members—the reasons behind the 5% increased rates per month in electric bills.
“First, wholesale power costs for DEMCO rose 60 percent beginning this past summer,” Pierce said. “One reason for this increase is DEMCO spread the costs of Winter Storm Uri over a year to prevent a shocking increase in one month. Spreading these costs over a year has increased rates by about five percent per month.”
The Louisiana Public Service Commission encouraged all state utilities to spread the cost over time to assist all ratepayers, the release states.
“The main driver, though, of higher wholesale power costs since the summer are the extraordinary closing costs related to our power supplier permanently shutting down the Dolet Hills Power Station in Mansfield, LA. These closing costs have been pushed into the rates of all CLECO consumers including wholesale customers like DEMCO,” said Pierce.
“The Dolet Hills closing costs have increased retail rates to our members by about 25 percent over the past six months. All of this is exacerbated by higher fuel costs over the same period,” he added.
DEMCO is close to paying off the winter storm costs and will soon see the end of higher costs tied to the Dolet Hills plant closing, the release further explained.
“As a result, the monthly kilowatt-hour price from DEMCO to our members will decrease by about 25 percent beginning in early 2022,” Pierce also stated.
To read more on the full release addressed by Pierce, click here.