PEC customers can expect increase in their bills starting October

Pedernales Electric customers may be in for some sticker shock when they look at their bills next month. It comes after an expensive summer for many households, with ongoing concerns about the reliability of the state's power grid.

AUSTIN, Texas - Pedernales Electric Cooperative (PEC) customers can expect an increase in their bills starting next month. It follows an expensive summer for Central Texans, with residents paying higher electricity rates as demand hit new records.

"I know of folks with triple the bills that they had in May, just for last July," said Ed Hirs, an energy fellow at the University of Houston.

Pedernales customers received a mailer in recent weeks, letting them know the utility is hiking monthly electricity rates by about 1.4 cents per kilowatt-hour, from $0.0445 to $0.0585. That amounts to a $31.5% increase.

However, PEC argues the actual increase is just $6.2%, or about $8.75 for the average customer because the utility is doing away with an electricity surcharge. That extra charge was added to offset $160 million in unexpected costs as a result of the 2021 winter storm.

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FOX 7 Austin reporter John Krinjak asked Ed Hirs, an energy fellow with the University of Houston, about what this increase could mean for customers.

"Going forward, they're going to have to spend more money as ERCOT passes these charges on to PEC. I think this is just the beginning of their future ladder of rate increases for the peak customers," said Hirs.

A spokesperson for Pedernales says the cooperative's "rate change is based on the forward market for power, not what it has previously purchased, and at this time the cooperative is not expecting further rate adjustments unless there are future changes in the forward market for the cost of power."

In a statement, Pedernales added the following:

"As a nonprofit electric cooperative, PEC is committed to delivering safe, reliable, and low-cost power to our members. This has been our mission for 85 years and remains part of our cooperative difference. In August, PEC adopted a necessary rate adjustment to recover increases resulting from the rising cost of power — costs that have tripled in the ERCOT market since 2020.

With the new rate in effect, PEC’s rates are still among the lowest in the state — 15% lower than the state average and 25% lower than the national average."

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Doug Lewin with Stoic Energy says the additional solar energy brought online has helped Texas avoid rolling blackouts.

However, Hirs argues that with higher prices, customers should be getting more grid reliability, which he says isn’t happening.

"We have not made the transition from cheap to reliable. Right now, we're just being gamed, and we're spending a lot of money for the privilege," said Hirs.

For families struggling to pay their electric bill, Pedernales encourages customers to apply to its Member Assistance Program. You can do so by calling (888) 554-4732, Monday through Friday from 8 AM to 5:30 PM. Rate information is available at pec.coop/rates, with a breakdown of the new rates.