Electric Rate to Rise 1-cent Due to Natural Gas Cost

Electricity costs for City of Georgetown customers are likely to increase this month due to rising costs for wholesale power. A 1-cent per kilowatt-hour increase would result from action expected by the Lower Colorado River Authority board on June 18.

LCRA supplies 90 percent of the electricity for City of Georgetown electric customers. The City does not own or operate power-generating plants.

Pending anticipated action by LCRA to raise the cost for wholesale power, the rate increase for City of Georgetown customers from 10.46 cents to 11.46 cents per kwh would take effect for energy consumed after June 24. The increase is a pass-through of wholesale cost.

The reason for the increase is a jump in natural gas cost in the last six months from about $8 per million British thermal units to $12. Three of LCRA’s four electric generating plants are powered by natural gas. LCRA also generates power from a coal-fired plant, six hydroelectric dams, and three wind power facilities.

While the increased cost of wholesale power from LCRA will be reflected in a new customer rate of 11.46 cents per kwh, rates for City of Georgetown electric customers continue to be competitive with other electric providers in the area.

Customer cost per kilowatt-hour (fixed rates, as of June 6, 2008):

¹$12.06 for first 1,000 kwh, including $6 monthly service charge

²$12.62 for first 1,000 kwh, including $20 monthly service charge

(Sources: powertochoose.com, Pedernales Electric Cooperative, City of Georgetown)

The rising cost of natural gas may lead to another increase for LCRA power cost later this year. However, the City of Georgetown will work to minimize the impact to its customers through wholesale power purchases from CPS Energy in San Antonio, and through its relationship with LCRA.

For details about City of Georgetown electric rates, go to georgetown.org/departments/billing/rates.php.