Utilities: Escalating Fuel Prices Cause Increase in Electric Costs
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(CUERO) - Faced with rising wholesale electric costs driven by higher natural
gas prices, the City of Cuero has had to raise electric rates. Just like other
utilities nationwide, the City of Cuero has been affected by climbing fuel
prices from its wholesale power provider due to a hot summer, major storms and
natural gas prices that have more than doubled since the beginning of 2005.
These have combined to mean unavoidably higher costs of producing electricity
by its wholesale power provider, the Lower Colorado River Authority (LCRA).
The cost of natural gas used to produce electricity has more than doubled since
the beginning of 2005. The City of Cuero makes no margin on these charges; it
simply passes the cost of fuel through to its customers. The effect on consumers
varies according to their use, but the average homeowner who uses 1,000 kilowatt
hours of electricity a month will see an increase of about $19.90.
The City of Cuero continues to partner with LCRA, as our wholesale provider,
which is among the lowest-priced power producers in the state, based on the
most recent surveys. LCRA's diverse power portfolio, which includes power from
coal, hydroelectric, wind and natural gas sources, has helped it keep its costs
lower than most utilities. LCRA has been a leader in developing renewable
energy resources and currently supplies more energy from clean hydroelectric
and wind power than any other community-owned power provider in Texas.
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