Why Are Electricity Prices Going Up?
For nearly 85 years, since 1940, Petit Jean Electric Cooperative has faced many challenges to provide safe, reliable and reasonably priced electric power to you, our members. Every new generation has had to face its challenges. Our generation is no different.
There are some things Petit Jean Electric can control, but there are other things we cannot. For example, Petit Jean Electric cannot prevent bad weather (i.e., tornadoes, ice storms, etc.), nor can we prevent inflation and the spiraling cost of materials (copper, wire, poles, transformers, etc.). Although we can’t control these things, we do work hard to mitigate these risks through planning, training and preparation.
Petit Jean Electric Cooperative also cannot prevent the increasing cost for wholesale electric power. Why is the cost of wholesale power increasing? There are several reasons for this:
- Increasing demand for domestic electric power (from 2.5% to 4.8% per year).
- Increasing demand for electricity for artificial intelligence (AI) and massive data centers.
- The shutting down of coal-fired electric generation plants because of Environmental Protection Agency (EPA) regulations.
- The construction costs of new gas-fired electric generation plants to replace the closure of coal-fired plants and to meet the ever-increasing power demands mentioned above.
Our generation is facing the convergence of these challenges which are driving up wholesale power costs.
Wholesale Power Cost Adjustment
Starting this month, Petit Jean Electric’s wholesale power cost will increase by approximately 3.75%. What will this mean for your electric bill? For 1,000 kilowatt-hours (kWh) of energy usage, this means your electric bill will increase a little over $2.
At the end of the day, Petit Jean Electric Cooperative must pay its wholesale power bill to provide our members with RELIABLE electric service. In the meantime, please know Petit Jean Electric continues to work closely with its wholesale power supplier, Arkansas Electric Cooperative Corporation, to keep the lights on and rates reasonably priced. While we may not have complete control over all circumstances, our 85-year commitment to providing our valued members with safe, reliable and affordable electric power remains unwavering.
