Louisiana High electric bills creating lots of sparks

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High electric bills creating lots of sparks

By MATT GRESHAM September 25, 2000 Email this story.

Many Houma residents say they are fuming about a big increase in their electricity bills.

Tom Bourg, Terrebonne Parish government' s utility director, said his office has received many calls about the matter.

Craig Duplantis, 27, of Houma, said his bills usually average about $200 per month. However, his bill for August was $357 to power his 1,200 square-foot home.

" It' s outrageous," Duplantis said. " I called them to come reread the meter, and they said it was right."

Anna Trahan, 48, of Houma, felt the same way.

" I' ve been living here for 29 years and I' ve never had an electric bill this high," she said.

Trahan' s bill rose from $199 in July to $263.94 for August. Typically, Trahan said her monthly electric bills range from $150 to $180.

" When I saw the bill, I almost had a heart attack," she said. " I guess my heart is healthy."

The reason for the abnormally high electric bills is a direct reflection of natural gas prices.

Natural gas, which fuels most new electricity generating plants, has stabilized above $5 per thousand cubic feet, up from the usual $2 to $3 range.

Bourg said July and August' s record-breaking heat didn' t help consumers either. And the Houma utility' s customers have responded.

" Due to an increase in consumption and the increase in fuel prices, we certainly have had a number of phone calls," he said.

Since February, the average fuel cost per kilowatt hour for Houma customers has risen from 2.8 cents to above 5.2 cents. Tack on the utility' s base residential customer rate of 4.5 cents per kilowatt hour, and the total for customers is 9.7 cents per kilowatt hour.

Bourg, whose department services about 10,300 meters in Houma, said fuel costs are outpacing the base residential rate.

" We are extremely sensitive to the concerns about cost," he said. " But we have no choice but to pass that fuel cost on because we have an equal burden."

In a year-to-year comparison, electric bills have risen an average of $40.48 per customer.

For instance, in September 1999, the average bill for a home consuming 1,600 kilowatt hours per month was $122.57. This month, the same customer would pay $162.57.

" A lot of customers just look at the money instead of the consumption rate," Bourg said. " While that is a substantial increase, you are comparing months with increased fuel costs and increased consumption rates."

According to data from the Houma plant, the peak consumption during the summer was 70 megawatts an hour.

Consumption levels are important because Terrebonne Parish receives a guaranteed 23 megawatts from a coal-fired plant near Alexandria. Coal-fired electricity costs about 1.9 cents per kilowatt hour to produce, compared to about 7 cents per kilowatt hour for power generated from a natural gas plant right now.

So, the remainder of electricity above the 23 megawatts is costly.

While futures prices for natural gas predict even higher costs, electric bills in Houma could be on their way down soon.

With cooler temperatures on the way, consumption will be down, and Bourg said the percentage of electricity produced by natural gas plants will be lower.

" Coal power, which is substantially cheaper, will become a larger percentage of the monthly mix as consumption goes down," Bourg said. " But, on the other hand there is no clear break in site with regard to natural gas prices."

For now, Bourg said his department is urging customers to consider an average-billing program, which levels the peaks and valleys of electricity costs.

" It is a program we strongly encourage for those individuals who cannot absorb the high fluctuations in prices," he said.

Bourg also urged customers to keep tabs on electricity use.

" It is good for customers to read their meters and monitor their consumption as a means of conservation," he said.

Matt Gresham is a staff writer at The Courier. He can be reached at 857-2204 or by e-mail at news@houmatoday.com.

http://www.houmatoday.com/news/stories/000925n2.html

-- Martin Thompson (mthom1927@aol.com), September 25, 2000


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