Excelsior EMC customers have contacted Grice Connect for help in understanding why their power bills have increased substantially over the past few months.
We reached out to Excelsior EMC with a request for information and an explanation for rate increases their power customers are experiencing.
Howard Porter, Manager, Member Services at Excelsior EMC, responded to our request reminding us that as a not-for-profit cooperative, they sell the power to the customers at what it costs them to purchase and deliver the power to their customers.
Like everyone, they have been hit hard with price increases. Natural gas, which is used for power generation, has almost tripled since this time last year.
According to the NRECA, the trade association for power cooperatives, the majority of their power generation is provided by natural gas and coal. NRECA also confirmed that rate inflation is an industry wide issue due to the increased cost of power generation costs.
The Georgia Public Service Commission does not have ratemaking authority over cooperatives, which allow them to adjust their pricing more rapidly to make up for inflation or market conditions.
As fuel prices begin to fall and inflationary numbers have stabilized, hopefully their members will see downward adjustments in the future.
Excelsior EMC rate increase response
Below is the full response from Howard Porter:
"As a not-for-profit electric cooperative, Excelsior EMC members receive power for what it costs us to deliver it to them. We strive to deliver low-cost energy to our members by keeping overheads low and working to purchase wholesale energy at the lowest price. When our wholesale energy price increases, the cost of power for our members increases as well.
As you know from filling your gas tank at the pump, the cost of fuel has increased significantly over the past few months. The unprecedented increase in the cost of natural gas (it has nearly tripled over the past year) has significantly driven up power generation costs. As reported in the news, several factors are contributing to the increased natural gas prices: inflation, supply chain issues, workforce shortages, and the war in Ukraine.
Due to these high fuel costs to generate power, Excelsior EMC members will see increased energy charges in their electric bills. The cost increase will be reflected in the Wholesale Power Cost Adjustment (WPCA) on our members’ power bills. The WPCA is the cost per kWh to purchase power that Excelsior EMC needs to meet the electricity demands of all our members. The additional amount each member pays each month will vary based on how much electricity is used.
We understand that higher energy charges are never welcomed news. We sincerely hope that the fuel costs will return to normal soon and that we can lower our energy charges to what our members are accustomed to seeing. As always, we will strive to do our very best at providing you with reliable and affordable electricity." Howard Porter, Member Services Manager, Excelsior EMC
