Natural gas prices are to blame
By DOMINICA LUPARELLO
Slidell news bureau
SLIDELL – Some Slidell residents may have received an exorbitant electric bill in August from Cleco that has been called “a billing process issue.” While that was a one time error, it followed rates that have gone considerably higher going back to last year.
The August bill shocked many individuals who received it, saying their bill had nearly doubled what it typically was, and it underscored the rise of gas prices already affecting people’s typical electrical bill, all causing quite a stir in the community.
Cleco’s Fran Phoenix, Corporate Communications Strategist, provided answers about the higher bills with information that was illuminating.
She said that on August 14 Cleco Power experienced a billing process issue that impacted a small percentage of their customers. A timing issue caused meter readings for bills to be generated based upon an estimate of the customer’s billing and not their actual bill for that month.
She also said that these bills were quickly canceled, and customers were rebilled on August 19.
“This was a singular event and not related to the higher-than-normal bills customers have been experiencing since the rise in the price of natural gas,” Phoenix explained.
In light of this error, it caused customers to take a second look at their power bills that have already been rising for months, something that Phoenix said is due to the increase in natural gas prices that has impacted power companies immensely. According to Cleco, natural gas prices have skyrocketed by over 100% in the past year. Due to natural gas being the primary fuel Cleco uses to generate electricity, this cost impacts customers solely.
“Cleco does not profit from their customers’ bill increase, but instead is simply maintaining the costs that keep production rates normal. This coupled with the summer heat causing everyone to crank up their air conditions provided the perfect storm for this exorbitant bill,” she added.
The other power company in the region, Washington- St. Tammany Electric Cooperative, also responded to how the rise in natural gas prices has affected them.
Walter Sylvest, the Manager of Finance, was able to provide some insight into how WSTE has navigated this ever-changing industry. According to Sylvest, WSTE has been less impacted because they generate power primarily with coal.
To be exact, WSTE’s power production is generated by 82% coal and 18% natural gas. That 18% has fluctuated prices for electric bills, but not to an extent that their members find to be overly substantial. Presently, coal cost and production are significantly less manipulated than natural gas at this time, so WSTE has experienced the difficulties of natural gas price increase differently than other electric companies.
Cleco and WSTE operate under different circumstances and have had different approaches to how they respond to the needs of their customers. Cleco has implemented many different programs to help their clients turn to energy efficiency that will save them money such as their Power Wise program.
WSTE, being a co-op and non-profit, said they try to provide equity among its members and currently offers a college scholarship opportunity. Both companies are navigating the fast-paced changes that exist in this energy dependent world and providing the best options possible for their customers.