Clay Electric drops power cost, raises access charge

BY DAN HILDEBRAN

ClayCivic.com Publisher

Clay Electric Cooperative said that beginning in July, it is reducing the power cost adjustment it charges its members by 35% and is increasing its access charge by 10%.

The utility said that for residential customers using 1,000 kWh of electricity a month, the members’ power charges before taxes would drop from $130 in June to $123 in July.

“The cooperative is able to lower the cost of power due to the decreasing price of natural gas,” Clay Electric said in a news release, “which Seminole Electric Cooperative: Clay’s wholesale power provider, uses to generate a sizable portion of the wholesale electricity it provides Clay and eight other distribution cooperatives in Florida.”

The utility attributed the increase in its monthly access charge from $29 to $32 on a rate study.

“The access charge is the component of a member’s bill that recovers some of the fixed costs that come directly from serving an individual member, regardless of how much electricity is used,” the co-op said. “These costs include the cost of the meter, wire and other equipment used to deliver electricity to the home or business, as well as meter reading technology and billing expenses.”

Clay Electric said that with its capital credits refund issued to members earlier in the year, the July power cost adjustment reduction is the third time members have received lower bills during 2023.

“In March and April, the co-op lowered the cost of power by 11%,” the utility said. “Also in March, Clay Electric members were refunded $12 million in capital credits, and entitled members saw a credit on their bill.”