2024 Wholesale Power Contracts

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.

Why did DEMCO decide to enter into a new power supply contract with NextEra?

  • Lower electricity rates for its members
    • DEMCO estimates that rates will be 10-15% lower than current average rates
    • DEMCO estimates that savings could be as high as 25% compared to peak rates under its current power supply contract
    • DEMCO can lock in power rates when market conditions are favorable, something it cannot do under the current contract
  • More stable rates
    • The current wholesale power contract allows rates to fluctuate monthly based on fuel costs that DEMCO cannot control
    • The new NextEra contract will allow DEMCO to lock in annual rates well before the beginning of each year to prevent month-to-month fluctuations
  • More diverse energy types
    • The NextEra contract initially includes approximately 15% solar energy, hydro energy and provides options to procure additional renewables
    • Solar power under the NextEra contract is not only environmentally friendly, but will be priced lower than DEMCO typically pays under its current contract

When will members see a difference in their bills?

  • The new NextEra contract, if approved by the LA Public Service Commission, would go into effect in April 2024
  • This is because DEMCO’s current contract with CLECO Power does not expire until April 2024
  • DEMCO must honor its current contract even though rates are higher than under the new NextEra contract

Who is NextEra?

  • NextEra is headquartered in Juno Beach, FL and is one of the largest suppliers of wholesale electricity to public power entities in the United States
  • NextEra has 15,000 employees and provides power to millions of customers in the United States and Canada, including 70 electric cooperatives and municipal utilities
  • NextEra is a Fortune 200 company

Why did DEMCO choose NextEra?

  • DEMCO conducted a detailed competitive bid process and NextEra won
  • DEMCO performed due diligence to ensure that NextEra could deliver on its promise to provide reliable power at a competitive cost