Corpus Christi Caller Times Caller.com - San Patricio electrical co-op reduces rates

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Tuesday, March 14, 2000

San Patricio electrical co-op reduces rates
Cuts attributed to cheaper fuel and better management
By Andrea Jares
Caller-Times

The 10,000 customers served by the San Patricio Electric Cooperative will start paying less for their electricity as the result of the first rate change since 1986.
   The decrease in the base fuel charge from 5.6 cents to 4.6 cents per kilowatt hour will go into effect on March 29, said F.D. McDowell, general manager of the San Patricio Electric Cooperative.
   The rate is currently .0568 per kilowatt hour. It will be reduced to .0463 per kilowatt hour, said Ron Hughes, office manager at the co-op.
   The rate reduction is a result of a decrease in fuel costs and more efficient operation of the company, McDowell said. The base fuel charge reflects the costs of generating and transmitting power.
   The San Patricio co-op is part of the South Texas Electric Cooperative, which distributes power purchased from hydroelectric-, coal- and natural gas-fired power plants. When the cost of generating the power is reduced, it is passed along to the customers, he said.
   Since the co-op is not regulated by the Public Utility Commission to adjust rates with market value, the board of directors votes to make rate adjustments. The board looks at the base rate costs every year, McDowell said.
   McDowell said the company has made a conscious effort to make the cooperative operate more efficiently since April.
   The co-op is a non-profit, consumer-owned organization that serves industrial, residential, farm and business customers in a nine-county area.



Business writer Andrea Jares can be reached at 886-3678 or by e-mail at jaresa@caller.com

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