GREENWELL SPRINGS, La. (BRPROUD) — DEMCO‘s CEO Randy Pierce tells customers in a letter Thursday that they could see “significant” savings after new wholesale power contracts were approved.
Pierce said new 2024 contracts with NextEra Energy Marketing and Amite Solar were approved unanimously by the Louisiana Public Service Commission. DEMCO’s current wholesale power supply contract expires on March 31, 2024, and the new contracts begin on April 1, 2024.
In August, DEMCO said a lawsuit against Cleco Power was possible after an audit conducted found that there were overcharges. Pierce is confident that new contracts will result in lower energy bills for customers.
“Under the new contracts, estimates show that electricity rates will decrease by approximately 10-15% on average, with even higher savings possible during high-priced periods like we have experienced recently,” said Pierce’s letter to customers.
Pierce adds that DEMCO entered into a fixed-price 25-year solar power-purchase agreement with Amite Solar to construct a solar facility in Tangipahoa Parish.
DEMCO serves customers in Ascension, East Baton Rouge, East Feliciana, Livingston, St. Helena, Tangipahoa and West Feliciana parishes.
To read Pierce’s entire letter, click here.