ed.00.Electric bills

Published 5:00 am Tuesday, March 16, 2021

Electric bills in Southwest Louisiana and in other parts of the state are going up for a couple of reasons — the February freeze and to pay for the cost of Entergy’s new plants in Lake Charles and Washington Parish. Entergy services about half the state’s 2.1 million electricity customers.

The Advocate reported that a residence between Baton Rouge and Lake Charles using 1,000 kilowatt hours of electricity when March 2021 is compared to March 2020 increased $9.61 or 10.5 percent, to $100.52. In suburban New Orleans and for the rest of the 1 million Entergy customers around the state, Entergy bills were $105.44, which is up $13.64 or 14.8 percent.

Cleco services parts of Acadiana and the North Shore, but mostly central Louisiana. It charged $99.63 in March, or $12.68 and 14.5 percent more than last year. Statewide, the average March bill was $99.34, which covers usage during one of the coldest Februarys ever in Louisiana. The statewide average increase was $5.77, or 6 percent more expensive than the same month last year.

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The state Public Service Commission sets an electricity rate that covers the cost of making, transmitting and delivering power, plus a profit. That sum is divided by the number of customers to set a rate. The rate is then multiplied by the amount of power a particular customer uses in a given month.

The cost of restoring power that was knocked out all over the state, which customers also will have to pay, won’t be determined for another year.

Logan Atkinson Burke, who heads the Alliance for Affordable Energy, a consumer group in New Orleans, told the newspaper, “We’re not seeing the full impact yet. That’ll come in April.”

Natural gas runs most of the turbines that generate electricity. Problems during the freeze and the added cost of running full tilt to make enough electricity means extra natural gas was needed.

Prices for that natural gas are negotiated months in advance, but when more was needed the companies often had to buy it on the daily market when prices were extremely high. Utility companies are allowed to pass that cost along to customers.

The PSC wants the companies to spread the additional costs out over several months instead of putting them on April bills. Entergy, in a company statement, said, “Entergy Louisiana expects to recover the increased fuel and power costs over multiple billing cycles to mitigate the impacts to customer bills.”

Commissioner Craig Greene made it clear that regulators will make sure the companies made every effort to mitigate high fuel prices. However, it will be impossible for customers to escape paying some higher electric bills.

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This editorial was written by a member of the American Press Editorial Board. Its content reflects the collaborative opinion of the Board, whose members include Dan Phelan, Crystal Stevenson, John Guidroz, Jim Beam and Mike Jones.