San Marcos Mercury | Local News from San Marcos and Hays County, Texas
Email Email | Print Print --

February 11th, 2009
City passes fuel savings to electric customers


The city of San Marcos will pass along to electric customers a 15 percent reduction in fuel and power costs recently implemented by the Lower Colorado River Authority, the city’s electric generation provider.

The reduction — saving residential customers an average of $11/ month — will be seen in utility bills issued in March, according to Tom Taggart, Director of Public Services.

“We are delighted to be able to pass this savings along to our customers,” City Manager Rick Menchaca said. “Last year, as fuel costs rose, LCRA increased its fuel charges and that increase was felt by customers. We are pleased that LCRA has reduced its fuel charges to coincide with the drop in the cost of natural gasùand we want our customers to benefit from this savings.”

The fuel and power cost recovery factor portion of LCRA’s wholesale power price decrease is due to a significant drop in natural gas prices, Taggart said.

LCRA relies on natural gas to produce about half of the energy it generates for purchase for San Marcos and the rest of its 43 wholesale electric customers. In January, the LCRA Board of Directors approved the 15% reduction in the fuel and power cost recovery factor.

The decrease reduced the cost by $0.011 per kilowatt hour. For the average customer using 1,000 kilowatts per month, that means a savings of $11.

As a result of the decrease in costs, LCRA reduced the cityÆs wholesale power bill in February. San Marcos customers will see the savings in their March bills.

As a cost-based utility provider, LCRA passes fuel and purchased power costs directly to its electric customers through adjustments in the fuel and power cost recovery factor portion of its wholesale power price. LCRA continually monitors market conditions and evaluates the need for adjustments.

The 12-month outlook for natural gas prices was averaging about $5.20 per million British thermal units (MMBtu). Last summer, the 12-month outlook for natural gas was averaging about $11 per MMBtu.
For more information about fuel costs, contact Kyle Dicke, Assistant Director of Public Services/ Electric Utility, at (512) 393-8309.


Email Email | Print Print


Leave a Reply

Your email address will not be published. Required fields are marked *