Clay Electric lowers power cost by 5.3% in July

Clay Electric Cooperative is lowering the cost of power for its members by 5.3 percent in July. This means members using the industry household average of 1,000 kWh of power will pay $123, a $7 savings. The previous cost was $130.

The cooperative is able to lower the cost of power due to the decreasing price of natural gas, which Seminole Electric Cooperative (Clay’s wholesale power provider) uses to generate a sizable portion of the wholesale electricity it provides Clay and eight other distribution cooperatives in Florida.

“Our lower power cost comes as a result of our power supplier continuing to purchase fuel at the lowest possible price,” said General Manager Ricky Davis.

The lower cost of power will be reflected in a lower Power Cost Adjustment (PCA) on members’ power bills in July. The amount of savings for each member will vary based on how much electricity is used.

The PCA reduction will mark the third time this year Clay Electric members have had a lower power bill. In March and April, the co-op lowered the cost of power by 11 percent. Also in March, Clay Electric members were refunded $12 million in Capital Credits and entitled members saw a credit on their bill.

A rate study indicated the cooperative should increase its Access Charge to recoup more of the fixed costs associated with building and maintaining the distribution system. The Access Charge is being increased to $32 beginning in July. The Access Charge is the component of a member’s bill that recovers some of the fixed costs that come directly from serving an individual member, regardless of how much electricity is used. These costs include the cost of the meter, wire and other equipment used to deliver electricity to the home or business, as well as meter reading technology and billing expenses. All utilities have some type of an access charge.