Flint Energies Wholesale Power Cost Adjustment Up in November
Staff Report From Middle Georgia CEO
Wednesday, October 25th, 2017
Even though members are seeing milder temperatures, Flint Energies’ wholesale power cost adjustment will go higher in November as the cooperative continues to pay for high power generation costs from the past few months. According to Flint Vice President Marian McLemore, the price of natural gas used to generate power this summer was higher than normal.
“With milder weather, Members typically will see lower energy bills due to the reduction in energy usage,” said McLemore. “However, this year, an active hurricane season caused disruptions in the production and transportation of natural gas. We’re seeing significant increases in the price for natural gas, which is one of main sources of electric generation. As a not-for-profit electric cooperative, cost increases are shared by all Flint members. We will be seeing a higher Wholesale Power Cost Adjustment in November.”
Members will see a WPCA of $0.01 per kilowatt hour on their November bills. The average Flint member uses 1300 kWh per month. The average member will see an increase of $13.00 to their energy bill.
The WPCA is set by the Flint Energies Board of Directors at their monthly board meetings. The history of the WPCA per kilowatt-hour for 2017 is:
Jan-17 $0.00400
Feb-17 $0.00400
Mar-17 $0.00400
Apr-17 $0.00000
May-17 $0.00100
June-17 $0.00100
July-17 $0.00100
Aug-17 $0.00100
Sept-17 $0.00300
Oct-17 $0.00700
Nov-17 $0.01000
(These WPCA charges are not additive, as the monthly charge from one month replaces the previous month.)
The WPCA charge focuses completely on recovering costs of power generated for the more than 89,000 members of Flint. Fuel for power generation is one of the largest components of the cost. The WPCA shows up as a separate line item on Flint bills and has been since December 2004.
McLemore noted that many members still think that electric rates should track the cost of gasoline, but fuel oil is not a direct indicator of generation fuel costs.