GREENWELL SPRINGS, La. (BRPROUD) — DEMCO customers could see their electricity rates decrease by 10-15% on average after new wholesale power contracts go into effect in 2024.

In a message from DEMCO CEO and General Manager Randy Pierce, he says customers are estimated to save $16 million per year in the new 10-year wholesale power contracts. The new contracts are set to go into effect on April 1, 2024.

“In your November electric bill, you will see a small reduction in the PCA factor (power supply cost): 0.07818 cents per kWh compared to October’s cost of 0.08702. Although the change is less than one cent, it is worth noting,” Pierce’s message to customers said. “This is a step in the right direction and hopefully, indicative of a more stabilized lower price of natural gas.”

Pierce said savings are estimated to generate nearly $500 million in economic growth in the state.

DEMCO serves customers in Ascension, East Baton Rouge, East Feliciana, Livingston, St. Helena, Tangipahoa and West Feliciana parishes.