BLUEBONNET: HIGHER JANUARY ELECTRIC BILLS DUE TO FREEZING WEATHER

  

Some members of Bluebonnet Electric Cooperative may have been caught off guard by their electric bills for this past month. 

According to information provided by Bluebonnet, the average residential bill for service in January was $177.62, up from the typical bill in January 2023 of $127.86.

Bluebonnet Public Affairs Manager Will Holford says the driving factor for the higher bills was the weather, as extremely cold temperatures in mid-January led to “record-high electric consumption.”

Across Bluebonnet’s service area, the average temperatures for January 2023 were a high of 68 degrees and a low of 45; last month, the average high was 59 and the average low was 37, with several days not even reaching the low.  As a result, the electric bill comparison indicated a notable change in the average residential usage, jumping from 1,158 kilowatt hours in January 2023 to 1,616 kilowatt hours in January 2024. 

Holford says Bluebonnet’s electric rates have not gone up since 2017, and the cooperative does not intend to increase those rates any time soon.

Members with questions about their bills or usage can reach out to Bluebonnet Member Services at 800-842-7708 on weekdays from 8 a.m. to 5 p.m.  They can also go to https://bluebonnet.coop/rates to learn how Bluebonnet calculates its rates and https://bluebonnet.coop/your-bill to see what makes up members’ monthly bills.

Further information provided by Holford can be read below:

“Bluebonnet members experienced record-high electric consumption in January due to the extremely cold temperatures. As a result, Bluebonnet members are receiving higher-than-normal electric bills this month, mainly caused by increased energy consumption to heat their homes and businesses. Bluebonnet is one of the lowest-cost electric providers in the state. Bluebonnet has not increased electric rates since 2017, and has no plans to increase rates in the near future, despite increased costs caused by inflation.

“We encourage members who have questions or concerns regarding their electric bill to contact our Member Services at 800-842-7708, Monday through Friday, 8 a.m. to 5 p.m., so we can work with them and provide detailed information regarding their electric bills and usage.

“The Residential Service portion of Bluebonnet’s electric bill is designed to recover the investment the co-op has in all the equipment it takes to deliver power to our members’ homes, including substations, poles, wires, transformers and metering infrastructure, as well as the cost to operate and maintain our electric distribution system. The Residential Service portion of the bill has two components: the $22.50 Service Availability Charge and a distribution rate based on kilowatt hour consumption. The Wholesale Power portion of Bluebonnet’s electric bill is a direct pass-through based on kilowatt hour consumption to cover the cost of generation and transmission. It is not typical, but in the case of an unoccupied or occasionally used home with below-average usage, there are times when the Residential Service portion of the electric bill may exceed the Wholesale Power portion.

“Bluebonnet and the Lower Colorado River Authority have been partners for 85 years in serving Bluebonnet’s members. Bluebonnet buys the majority of its wholesale power from LCRA under a long-term agreement. This agreement is an at-cost contract based on the LCRA’s cost to operate and maintain its generation fleet and manage Bluebonnet’s power needs in the ERCOT market. Bluebonnet also purchases about 25 percent of its power from alternate wholesale power providers under short-term contracts that provide additional savings to Bluebonnet’s members. Bluebonnet’s wholesale power cost, as a component of the overall rate, is among the lowest in the state.

“In addition to low-cost rates and power costs, Bluebonnet’s members share in the cooperative’s success through capital credits. Last year, Bluebonnet returned $9.4 million to its members in capital credits. Members received their share of the $9.4 million as credits on their electric bills, helping to reduce the overall cost of electricity.

“In addition to contacting Bluebonnet’s Member Services at 800-842-7708, Monday through Friday, 8 a.m. to 5 p.m., members can learn more about cooperative benefits through our website. There is a page dedicated to informing new members at bluebonnet.coop/new-member-center, as well as pages explaining the components of Bluebonnet’s rates at bluebonnet.coop/rates, and electric bills at bluebonnet.coop/your-bill.”