Greenwell Springs, LA – DEMCO released information today alerting members to expect higher than normal cost of electricity due to 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. 

The high cost of producing electricity will be reflected in member billing statements in August, September and October.

Pierce explains, “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”.

Members began paying the high electricity bill for winter storm Uri in May 2021 and will continue paying for that expense through April 2022. The power cost adjustment (PCA) on member billing statements includes $0.005 for each of twelve months instead of having the total charge applied in a single bill.

“The PCA (power cost adjustment) is not a new or additional cost,” states Pierce. “This cost has always been reflected on the bill but was included in the total amount due. PCA fluctuates from month to month due to the cost of wholesale power.”

For ideas on saving energy to lower your bill, DEMCO advises its members to visit resources provided on their website, https://demco.org/member-services/save-energy titled “Energy Use and Your Bill” under the “Member Services” tab on the home page www.DEMCO.org.