Like the cost of many things now, natural gas prices continue to soar. Natural gas is one of the key fuels used to produce the energy that powers GEC member homes and businesses. Rising natural gas prices are attributed to exports to allied countries in Europe as a result of Russia’s war with Ukraine, coupled with increased demand here in the U.S. due to extreme heat waves and federal policies causing a shift from coal to natural gas fuel.
As a result of rising natural gas costs, GEC was notified in early August of an additional $1 million increase in our wholesale power cost. This increase brings us to over $4 million in additional fuel costs for the year, as of mid-August. The continued rise in natural gas prices means another increase in our Power Cost Adjustment charge is necessary to recover this expense over the remaining four months of the year. Beginning September 1, GEC will increase our Power Cost Adjustment by $8.15 per 1,000 kWh, bringing our total cost for 1,000 kWh to $168.15.
We know cost increases reflected at the gas pump, in groceries, other goods and services, and in your power bill are making it harder to make ends meet. Fuel costs are out of our hands, but how much energy you consume is something you can control to help reduce your power bill. If you haven’t considered simple changes you can make to lower your costs, we urge you to check out our energy efficiency tips.
To minimize rate increases, we are working to keep non-fuel expenses down even as we face our own material cost increases and a growing electric system. We know times are tough, and getting tougher. We do want our members to know that our first consideration is always how each of our decisions impacts you and the service we provide.