Coming to your electric meter April 1, 2024!


Energy solutions for Louisiana’s future

DEMCO and the Louisiana Public Service Commission are rolling up their sleeves and finding solutions that save you money.


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Did you know the Louisiana Public Service Commission,
or LPSC, is the official regulatory agency of Louisiana utilities?

An important part of their job is looking out for utility customers. The LPSC is enabling local power companies, like DEMCO, the opportunity to choose different power suppliers to purchase electricity from after being locked into a restrictive contract for 10 years that has driven up costs. The LPSC has a responsibility to

Louisianans to ensure that their power providers offer reliable, competitively priced electricity. On October 19, 2022, the LPSC voted unanimously to support certification of the new contracts.

How did the new power supply selection process work?

DEMCO received 95 product proposals from 13 companies in response to a 2019 request for proposal. DEMCO selected NextEra Energy Marketing (NEM) as the best choice for power supply and competitively priced energy services. Now, DEMCO will have the flexibility to benefit from the most current wholesale market resources.

 

DEMCO also entered into a fixed-price 25-year solar power-purchase agreement with Amite Solar, to take all of the capacity and energy from a proposed 100 MW Amite Solar facility to be constructed in Tangipahoa Parish. That means green and modern energy!

What does this mean for you?

LOWER ENERGY COSTS

MORE PREDICTABLE FLAT RATES

RELIABILITY & STABILITY

Lower Energy Costs
–up to 15%!

Under the new contracts, estimates show that electricity rates could be cut by approximately 10-15% on average, with even higher savings possible during summer heat waves and winter storms.

Experts estimate:


  • 10-15% lower rates than the current average*

  • Savings as high as 25% compared to peak rates*

  • $16 million in savings every year for DEMCO customers *

* Richardson, Dr. James. Projected Economic Outcomes of DEMCO’s Power Supply Contract with NextEra, Economic Impact of Developing Lower Electricity Prices. Baton Rouge, Louisiana (2021).


More Predictable
Flat Rates

DEMCO can lock in annual rates when market conditions are favorable, something it cannot do under the current contract.

 

Experts say more competitive rates, price stability and a more robust economy are what DEMCO members and the region will enjoy as a result of these new contracts.

 

Also, DEMCO will be able to help its members by locking in annual rates well before the beginning of each year to reduce month-to-month fluctuations.

Reliability & Stability

The new contracts mean greater reliability and stability when it comes to generating power for homes and businesses. Just take a look at ways this change can benefit you:


  • A mix of energy resources, including output from the new Amite Solar facility.

  • Flexibility over time to adapt to market, regulatory, and technology changes.

  • DEMCO’s new supplier is one of the largest and most experienced power suppliers in the country.

The Benefits of
the Agreement

NextEra Energy has 15,000 employees and is a Fortune 200 company that provides power to millions of customers in the United States and Canada, including 70 electric cooperatives and municipal utilities.

 

The agreement is the result of an extensive and transparent bid process that included 95 proposals from over a dozen providers.

 

LSU Economic Professor Jim Richardson predicts the savings associated with the new DEMCO power supply contracts would generate nearly $500 million of economic growth in Louisiana, create $6.4 million in property tax revenues, offer 200 temporary construction jobs, and save members approximately $160 million from lower electricity rates.

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