What to expect on your March bill
Energy prices continued to fall in February and CoServ was able to pass on these savings by lowering the electric and natural gas rates again.
These market forces affect all utilities in Texas but, as an electric cooperative, CoServ doesn’t mark up electricity for profit. CoServ’s electric rate went down by more than a penny as wholesale power prices dropped.
CoServ accounts for fluctuations in wholesale electricity prices by adjusting the Power Cost Recovery Factor (PCRF). When wholesale electricity prices are higher, the PCRF will be a positive number, adding to the base rate. Conversely, when prices are lower, as they are now, the PCRF subtracts from the base rate.
The PCRF for March is -1.4 cents per kilowatt hour compared to just -0.3 cents per kWh last month. That means the electric rate is 1.1 cents lower than last month. That amounts to a savings of about $11 per 1,000 kWh on Member’s March bills.
That’s about $24 less per 1,000 kWh compared to what Members were paying in September, when energy prices peaked.
Natural gas prices are the biggest factor that determines electricity prices and natural gas continues to trade below $3 per million British thermal unit.
That led CoServ to lower the Purchased Gas Factor (PGF), which is similar to the PCRF but for gas. Overall, the gas rate for March is about 3.5 cents less than last month, which amounts to a savings of about $2.45 per 70 ccf of gas.
While energy charges will be lower than last month, the energy usage will be about the same. The average temperature for February was 52.4 degrees Fahrenheit, only 0.3 degrees warmer than January. Overall, the Heating Degree Days for February were only 10 percent less than January. Click here for more information on how to calculate Heating Degree Days.
February was also a rainy month with almost 4 inches of rain, 1.2 inches above normal.
There were 11 days where temperatures reached 70 degrees or higher in February, meaning some Members may have even run their air conditioner at times.
The ice storm that hit at the start of the month accounts for the bulk of the low temperatures. In total, there were 6 nights where temperatures fell below freezing.
