Customers of the Beauregard Electric Cooperative, Inc. (BECi) will see a significant increase in their power cost adjustment charge on their upcoming electric bills.

In a letter to members of the Co-op, Brain Zelenak, general manager, BECi, said this increase is “not due to any actions by BECi,” but is instead a result of increased purchase power costs from their power supplier Cleco-Cajun – a utility company that serves 25 parishes in Louisiana and has had a wholesale power supply and services agreement with BECi for over 20 years.

The letter stated that at a meeting in December 2023, Cleco-Cajun informed BECi management that a “force majeure” in their contract was being invoked. This is a clause commonly included in contracts that removes liability for unpredictable and unavoidable events that prevent contracted obligations from being met.

However, Louisiana Generating LLC – a subsidiary of-Cleco Cajun – told the American Press in an email that a “force majeure” declaration has not been made under the power supply and services agreement between Louisiana Generating and BECi. Instead, the barge transportation company that is used by Louisiana Generating declared a “force majeure.”

Fran Phoenix, corporate communications, communication strategist III, Cleco Support Group LLC, confirmed that the coal used by Louisiana Generating to generate electricity is shipped via the Mississippi River, which has “been adversely affected by drought conditions over the past year.” These low water levels have impacted the barges’ ability to be fully loaded with coal, driving per ton costs for delivered coal up.

“The barge company is unable to completely fulfill the terms of our delivery contract due to the low water levels, a circumstance beyond anyone’s control.”

In the letter, Zelenak said that BECi’s bill to Cleco-Cajun in December was about $3.5 million higher than it was in November. Due to the increase, utility bills will be affected. A household using 1,000 kilowatts per month will see an approximate 26 percent increase in power cost adjustment charges.

He said that BECi was informed that the increases will continue for at least two months and are dependent on the status of the water levels in the Mississippi River. Louisiana Generating confirmed that the “delivery constraints are expected to be temporary.”

BECi has submitted a “payment under protest” letter to Cleco-Cajun, which allows BECi the chance to challenge the cost increase and “request additional information while preserving full audit rights.”

Zelenak said that this is one of the steps that is being taken to address the power cost adjustment increases.

“We are unfortunate to inform you of this situation, but please understand we are doing everything in our power to ensure members we are doing whatever we can to address the force majeure, request documentation and preserve our members’ legal rights to a just resolution.”

The power cost adjustment increases will be discussed at the BECi January board meeting at 9 a.m. on Thursday, Jan. 11 at the BECi Training Room in DeRidder. Only active BECi members are allowed to attend the meeting, and must have a photo ID to enter.