EMC customers likely to see much higher electric bills beginning this month

In this summer season of peak usage, some of Coweta-Fayette EMCs members may be seeing record high electric bills. And it’s all because of higher fuel costs.

Since electricity cannot be stored, supply must always equal demand. Therefore, there is a need to build for the peak because sufficient generation capacity must meet maximum instantaneous demand whenever it happens. Meeting varying demands requires a mix of generation capacity including base-load and peaking generation.

A base load generation unit is one that provides a steady flow of power regardless of total power demand. This unit runs all seasons and usually runs on low-cost fuels like nuclear and coal.

In contrast, peak load units are power plants that generally run only when there is a high demand, known as “peak demand”, for electricity.

This especially occurs during the summer months when air conditioning usage is high. Peak load units are generally gas turbines that burn natural gas, which is more expensive than coal or nuclear.

Normal base rates are designed to cover the utilities investments and normal fuel costs during the year.

Unfortunately for Coweta-Fayette and all other utilities in the country, the rising cost of oil has pushed other fuels like coal and natural gas to record highs.

During the summer months all of the EMCs peaking generation is supplied by these natural gas turbines. As air conditioners come on, turbines begin to run using millions of therms of natural gas.

During the month of June, gas turbines owned by the EMCs used almost 2 million decatherms of natural gas. Prices have increased 60% since January 2008 adding $10 million to the fuel budget for that month alone.

According to Michael Whiteside, president and CEO of Coweta-Fayette EMC, “Even though gas and coal costs continue to be extremely high, Coweta-Fayette has no choice but to continue purchasing these during the peaking season. It has forced our wholesale power cost adjustment (the provision for recovering fuel costs) to rise continuously. At the request of our board of directors, we have looked internally for ways to control some parts of our budget, but because of the magnitude of the fuel cost, we have no choice but to pass the extra cost through to our members in August.”

To help keep cost down the EMC suggested implementing some of the following energy saving tips.

• 1. Make sure your attic and floors are adequately insulated. The higher the R-value of the insulation, the greater it’s insulating power.

• 2. Keep air conditioner filters clean and systems serviced.

• 3. Install a programmable thermostat and save money by setting your temperature no lower than 78 degrees in the summer.

• 4. Keep drapes, shades or blinds closed on windows during the day to block out heat from the sun.

• 5. Replace single pane windows with double-pane high-performance glass.

Coweta-Fayette EMC is a consumer-owned cooperative providing electricity and related services to 70,000 consumer/members in Coweta, Fayette, Heard, South Fulton, Clayton, Spalding, Troup and Meriwether counties.