Terrebonne Parish releases Q+A about recent high energy prices, utility bills, and more

•  Where does TPCG get its power?
  • TPCG currently buys electricity from Entergy to power TPCG Utility customers. Entergy bills TPCG two months behind the current date. We are currently paying Entergy for energy consumed in January.

• Why was my March bill so high?
  • Energy costs were significantly higher than originally predicted because January had several severe weather events, including hard freezes, which drove consumption up. TPCG now must offset the difference between our forecasted consumption rate and the actual consumption rate.
  • The March price increase is a temporary measure to offset high energy costs associated with the freezing temperatures in January. Generally, TPCG accurately forecasts electrical usage for the parish, but these instances can occur with extreme weather conditions. Temporary adjustments allow the price to return to the previous rates under normal conditions.
  • TPCG works hard to consistently offer customers the lowest possible cost per Kwh. Check out these graphs below that show TPCG customers having lower-than-average electric costs (based on a 1000 Kwh consumption) when compared with other electric providers in the area and throughout the state!
  • To see our energy rates in real time and for information on how your electric bills are calculated go to tpcg.org/customerservice and click Utility Rates.

• How are energy costs calculated?
  • This is not determined by one person and the following formula is used to determine the rates at which we bill. The energy cost charge (ECC) can be calculated with the formula: Energy Cost Charge (ECC) = A+B / C (in $/kWh)
  • Where: A = Current energy cost: The cost of all delivered energy, including transmission costs and losses, from two months ago.
  • B = Deferred energy cost: The actual energy cost minus the recovered energy cost, adjusted to reflect additional costs not included in the actual energy cost amount. Some or all of this amount may be applied at the discretion of the Utilities Director. In addition, an amount may be included for working capital to mitigate future negative impacts on the deferred energy cost, provided, however, that in determining the amounts of either, the Utilities Director shall endeavor to recover the actual energy cost over any twelve-month period while maintaining a level energy cost charge.
  • Actual energy cost: The cost of all native plant electric production fuel and all delivered energy in prior periods, including associated transmission costs and losses.
  • Recovered energy cost: The cost of the actual energy cost recovered through application of the energy cost charge in prior periods.
  • C = Estimated sales volume: The estimated volume of sales, in kilowatt-hours (kWh), in the current billing month, calculated as the product of the net amount of energy, to be delivered to the distribution system and a percentage representing the fractional portion to ultimately be delivered to the consumers after accounting for system losses.

For more information, please visit the Terrebonne Parish Consolidated Government Facebook page.