DEMCO alerts members to expect higher than normal electricity costs
GREENWELL SPRINGS, La. (WAFB) - DEMCO says its members should expect higher than normal electricity costs due to what it describes as “a significant increase in the cost of wholesale power.”
“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,” said Randy Pierce, DEMCO CEO and general manager.
Members will start seeing the higher costs in their billing statements for August, September, and October.
“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,” added Pierce.
Members began paying the high electricity bill for the February 2021 winter storm in May 2021 and will continue paying for it through April 2022.
The power cost adjustment (PCA) on member billing statements includes $0.005 for each of 12 months instead of having the total charge applied in a single bill.
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