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CoServ passes on savings again with lower November electric rate

CoServ passes on savings again with lower November electric rate

 

By NICHOLAS SAKELARIS | CoServ 

After a record-breaking summer, October brought some much-needed mild weather that should reduce CoServ Member’s electricity usage on their next bill.

Additionally, natural gas prices dropped, trading at around $6 per million British thermal unit on November 1. Compare that to August when prices were more than $9 per MMBtu.

That means wholesale electricity prices were also down during the month of October, which means for the second month in a row, CoServ lowered the price per kilowatt-hour for electricity.  

CoServ accounts for fluctuations in wholesale electricity prices by adjusting the Power Cost Recovery Factor (PCRF) every month. When our cost for wholesale electricity goes up, the PCRF is increased to recover our costs. When prices are lower, as they are now, CoServ adjusts the PCRF down, which reduces Member bills.

For November, the PCRF decreased to -0.0030. The negative PCRF – the first since May – means that this amount will be subtracted from the base rate, not added.

November also marks the return to winter tiered rates. So, CoServ Members will pay about $11 less per 1,000 kilowatt-hours this month compared to last month. This means that most CoServ Members should have their lowest electric bill since spring, provided that their October usage was not unusually high.  

“It’s the season for being thankful and we are all beyond thankful for the current mild weather that should provide some relief on our Members’ electric bills in November,” said Stephen Meers, Director of Customer Operations. “Lower natural gas prices also reduced our wholesale power costs for the month. We know this past summer was a tough one but we kept our promise to pass any savings on to our Members. This is another reason why we whole-heartedly believe our Members are better off with an electric cooperative than in the deregulated electricity market.”

November 2022
First 700 kWh   $0.129402
MINUS the PCRF $0.0030
  = $0.126402 per kWh
     
Next 300 kWh   $0.119402
MINUS the PCRF $0.0030
  = $0.116402 per kWh
     
Over 1000 kWh   $0.114402
MINUS the PCRF $0.0030
  = $0.111402 per kWh

Click here to learn more about the PCRF and how your bill is calculated.




The average temperature for October 2022 was 69.1 degrees, nearly 3 degrees cooler than the same month a year ago. Temperatures only reached 90 degrees or higher on two days.

On the other end of the spectrum, there were 12 nights where temperatures were 55 degrees or less. October was also a rainy month with 4.43 inches of rainfall, which is slightly above average historically for the month.

For more people air conditioning use decreased an estimated 62 percent from October to September, based on the Cooling Degree Days for North Texas. Click here to learn more about Cooling and Heating Degree Days. Milder temperatures typically translate to reduced air conditioner usage – which reduces electricity usage.

There may have been a few times homeowners turned on their heaters for the first time in October based on the nighttime temperatures. The Heating Degree Days were 43 for October 2022 compared to zero for the prior month.

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