Customers feeling power pinch
Jul 10 - McClatchy-Tribune Regional News - Phil Riddle Weatherford
Democrat, Texas
Weatherford electric consumers are feeling the pinch caused by
ever-increasing costs associated with producing power in the sweltering
summer months.
Customers of the city's utility department have seen significant increases
based on unusually high fuel surcharges for natural gas.
One customer, Michael McCarty, made appearances before both the Municipal
Utility Board and the City Council to express his desire to choose a power
supplier other than the city.
"When I opened my electric bill, I was surprised and astonished," McCarty
told council members. "I was expecting an increase in the bill from the
previous month due to the time of year, but it was a shock to see a 66
percent increase in usage result in a 123 percent increase in that bill."
City Manager Jennifer Fadden explained the city's recent move from a
coal-fired provider in West Texas to a nearer natural gas-fueled plant has
caused bills to go up as a result of fuel costs, which are generally passed
on to consumers.
Weatherford Utilities moved to the gas generated supplier when the Electric
Reliability Council of Texas grid in the western portion of the state became
log-jammed with power generated from wind farms.
"Coal generated electricity is cheaper," Fadden said, "but until ERCOT
upgrades its transmission lines, getting it here from West Texas is not
economically feasible. And no one in the Metroplex is going to allow a coal
plant, so coal is basically off the table. It's not practical. It's not cost
effective. Natural gas is the best bet."
She added some stabilization of gas markets have occurred, though another
price spike is expected before hot weather ends.
McCarty, after doing Internet research on electricity costs in Texas,
suggests power could be available at a lower cost to municipal customers.
"It would appear I could get better pricing on my energy costs as an
individual," he said, "or I could, if I were not currently denied that
freedom to choose."
Fadden said she understands customers' frustration.
"Our ultimate goal is a cost-effective, steady rate," she said. "Spikes like
this are not good for anyone, especially those on a fixed income who don't
have much flexibility to pay high electric bills."
McCarty seemed adamant about the right to choose his own electric utility.
"We have reset our programmable thermostats," he told the Utility Board. "we
have changed our light bulbs. We have insulated our homes and installed
radiant barriers. We have exhausted our options. You must administer this
utility as though your customers had the ability to seek the best price
available, or you must get out of the way and give them that freedom to
choose."
While the chances of the city moving away from a municipal utility system
are slim, Fadden reminded customers the utility pays dividends to the city
to help keep property taxes low, and of low power rates paid earlier in the
year.
"We hope our customers don't forget our average per kilowatt-hour was just
over 10 cents," she said. "That was much lower than the rest of the
deregulated market." |