Key Factors that Influence Electricity Prices
Sep/Oct 2021 Along these LINES, pg 21
DEMCO is dedicated to providing safe, reliable, and competitively priced energy services to our co-op members.
Currently bound by an existing wholesale power contract with Cleco Power until expiration in April 2024, DEMCO has signed and submitted new wholesale power contracts to the Louisiana Public Service Commission (LPSC) in compliance with the robust review and approval process.
If approved DEMCO will enter into new wholesale power contracts with NextEra, one of the largest suppliers of wholesale electricity to public power entities in the United States. DEMCO’s new wholesale power contracts will take effect in April 2024 upon expiration of the current contract with Cleco.
With NextEra as our new wholesale power provider, rates are estimated to decrease by 10-15% compared to current averages rates, and by as much as 25% compared to current peak rates. Over the ten-year life of the contracts, DEMCO co-op members will save over $160 million.
The contracts with NextEra will also allow DEMCO to lock in annual rates to prevent month-to-month fluctuations, and offer more diverse energy types. DEMCO’s initial contract will include approximately 15% solar energy and hydro energy with options to procure additional renewables.
Lower electricity bills will not only benefit our members but our regional economy as a whole. Having to pay less for electricity will allow individuals and families to spend more on other goods and services, creating additional economic activity throughout the communities where our DEMCO members live, work and play.
For more details, please click on the links provided below.