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Local News

November 16, 2008

Wind raises rates

First increase in two years

DawnDee Bostwick

DUNCAN — Duncan residents and businesses that have opted to include wind power in their electric utility will see the first rate increase in two years.

The Duncan Public Utilities Authority voted to pass the measure during its meeting Tuesday night.

Customers who have decided to participate in the greener energy alternative will be paying 2.8 cents more per kilowatt hour used. The increase will take effect starting with Jan. 2009 billing.

Duncan Power Electric Utility Director David Yeager said the adjustment is one that is necessary to continue providing the option to Duncan Power members.

“Right now we sell the most wind power in OMPA (Oklahoma Municipal Power Authority) and right now we sell the cheapest wind power in OMPA,” Yeager said. “We are at the point where we are going to have to tell people we can no longer sell wind power, or we’re going to have to raise the price.”

Because creating wind-driven energy requires wind, a variable that isn’t always constant, a customer also has to be serviced by other means to ensure a continuous electric supply.

Electric rates are determined by a Fuel Cost Adjustment (FCA). For customers with wind power, that rate is waived and replaced by a Wind Power Rider rate (WPR). Currently, the WPR is lower than the FCA.

Those customers with the green alternative aren’t subject to the FCA. But because they still use other energy products, like coal and natural gas to supplement their electric supply, their not paying a rate that is covering the actual cost.

“Wind power has its place, but it’s operating requires a little more advanced planning and that costs money,” Yeager said.

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