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Serving North Texas Since 1937

October brings cooler weather and slightly lower energy charges for CoServ Members

October brings cooler weather and slightly lower energy charges for CoServ Members

 

For 85 years, CoServ has made a promise to our Members to provide reliable energy solutions at an affordable price.

We stand by that commitment – even through one of the hottest summers on record and when many of our Members have been hit with some of the highest bills they’ve ever received.

The higher temperatures combined with higher wholesale electricity prices – brought on by higher natural gas prices – were beyond CoServ’s control. As an electric cooperative, we never mark up electricity prices for profit. However, the electricity we purchased did cost more and those costs were passed on to our Members.

This process is done monthly through the Power Cost Recovery Factor or PCRF. The PCRF is adjusted up and down based on the cost we pay for electricity and is then taken from or added to CoServ’s base rate of $0.1294 - which always stays the same.

For CoServ Gas Customers, it’s very similar with the Purchased Gas Factor (PGF), which is adjusted based on the price of wholesale natural gas.

We know these increases affected the budgets of our Members and Customers. Our Customer Care Specialists listened with sympathetic ears while offering solutions, advice, free energy assessments and contact information for social service agencies that we partner with for utility assistance.

As mentioned above, when energy prices are high, those costs are passed through to our Members. But the same is also true when prices drop – those savings are immediately passed through to Members.

Fortunately, lower natural gas prices have allowed CoServ to adjust the PCRF and the PGF down for October, which will lower the rate you pay for electricity and natural gas.  

The October PCRF will be $0.005, or half a cent. That’s down 0.007, or seven-tenths of a cent, from last month, bringing October's Standard Residential rate to $0.1344 per kWh That will save Members $7 per 1,000 kilowatt-hours.

October 2022
Base rate per kWh   $0.129402
PLUS the PCRF + $0.005
  = $0.134402 per kWh

Compare that to the average electric rate in the deregulated market in Texas and the savings are even more noticeable.



Graph compiled on October 7, 2022. Data retrieved from the Public Utility Commission for REP average 12-month contract and compared to CoServ’s standard residential rate for the same time period based on 2,000 kWh.

 

Then consider that most REP contracts require a long-term contract so customers who signed up over the summer are locked in at a higher rate, possibly for several years, and will get no relief when/if wholesale prices drop. Breaking the contract with the REP typically includes paying a steep penalty as well.

The PGF also dropped to $0.8823 cents, down almost 45 cents from September. That will save Gas Customers about $33.00 per 75 CCF of natural gas in the month of October.

October 2022
Volumetric rate (Usage charge)   $0.12097
PLUS the PGF + $0.8823
PLUS the Gas Rate Case Expense + $0.00333
  = $1.0066 per Ccf

Compare that to our main competitor's gas rate and the savings are even more noticeable.



Graph compiled on October 7, 2022. Data of our main gas competitor compared to CoServ’s gas rate for the same time period based on 75 Ccf.

 

It’s important to remember that even though energy costs are decreasing slightly, energy costs across the nation are still higher than in previous years. And this means bills will likely continue to be higher for the foreseeable future.

We know that higher bills greatly impact our Members and Customers. But rest assured that CoServ takes this responsibility seriously and we’re doing everything we can to keep costs down for CoServ Members.

In addition to paying less per kilowatt for electricity, milder temperatures also brought some relief from the August heat.




There were still 12 days where the high temperature reached 95 degrees or higher in September. The average high was 91.2 degrees. The drought continued, too, with less than one-third of an inch of rain, down 2.39 inches from normal for September in North Texas.

Air condition use was also on par with last September, according to the Cooling Degree Days, a metric that uses average temperature to measure condition use.  Click here to learn more about Cooling Degree Days. It’s still down about 200 points from the scorcher that was  August, though.  And it’s about half the Cooling Degree Days from the record-breaking heat that enveloped North Texas in July 2022.

Overall, CoServ Members should expect usage to be about the same for this September compared to the same period in 2021 and usage should be lower than August 2022.

We thank all our CoServ Members and Customers for their understanding during this energy crisis.

 

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