The Duncan Banner

October 29, 2013

Duncan Power’s rates to remain competitive regardless of increase

Derrick Miller
The Duncan Banner

DUNCAN — A resolution to increase the fuel cost adjustment for Duncan Power customers may be adopted by the Duncan City Council in two weeks. If the resolution is adopted, customers may not see much rate difference compared to Public Service Company of Oklahoma or Cotton Electric Cooperative.

If the resolution is adopted, customers will start paying $22.76 per 1,000 kilowatt hours, which would be a $3.36 increase over the current fuel cost adjustment of $19.40 per 1,000 kilowatt hours. This increase would begin with November billing.

David Yeager, Duncan Power director, said the average electric bill with the change in fuel cost adjustment would be $100.72 for every 1,000 kilowatt hours used. Yeager said Duncan Power rates will remain competitive.

Duncan Power is one of three electric companies serving Duncan residents. The others are PSO and Cotton Electric. Duncan Power serves about 80 percent of Duncan residents.

As far as the competition goes, PSO customers are be spending about $97.47 for every 1,000 kilowatt hours. Stan Whiteford, PSO corporate communications, said PSO customers will be seeing lower bills beginning Nov. 1 because its power cost adjustment will reflect a larger credit than in recent months.

That credit will be at 0.008525 per kilowatt hour. That means, for every 1,000 kilowatts a customer uses, the customer will receive a discount of $8.53. With this change, a customer’s bill could be as low as $93.70 per 1,000 kilowatt hours.

“Right now, natural gas prices are real low,” Whiteford said. “By law, we’re not allowed to make a profit on the fuel cost. We pass along the fuel cost savings onto the customers.”

Cotton Electric customers using 1,000 kilowatt hours may spend about $100.29 in November. Because the power cost adjustment (PCA) fluctuates from month to month, customers will be spending slightly more in November than in October.

The power cost adjustment for November is a credit of 47 cents per 1,000 kilowatt hours. For the October billing cycle, the PCA was $2.05 per 1,000 kilowatt hours.

Karen Kaley, Cotton Electric communication specialist, said, “Residential power bills for Cotton Electric members consist of three elements: A base customer charge, a per kilowatt hour charge and a power cost adjustment. The first two elements are static and the power cost adjustment is calculated on a month-to-month basis. The PCA is either a per kilowatt hour charge or credit.”

All three electric companies deal with various types of fuel, including natural gas and coal. Duncan Power also uses hydropower, which is based on the availability of water. Because of this year’s drought, the municipal power company had to purchase more hydropower than in wetter years.

The Duncan City Council will vote on the resolution at 5:15 p.m. Nov. 12 at the Duncan City Council Chambers. This item was tabled during the Oct. 22 meeting.