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Concern for Community: Clay Electric lowers power cost for April by 25%

Clay Electric Cooperative is lowering the cost of power for its members in April with a one-time decrease of 25 percent, or an average of $30 in savings. This means members using the industry household average of 1,000 kWh of power will pay $84.77. March’s cost was $112.90. This savings will assist those in our communities who are experiencing financial hardship due to the COVID-19 pandemic.

The cooperative is able to lower the cost of power due to the decreasing price of natural gas, which Seminole Electric Cooperative (Clay’s wholesale power provider) uses to generate a sizable portion of the wholesale electricity it provides Clay and eight other distribution cooperatives in Florida.

“Our lower power cost comes as a result of our power supplier continuing to purchase fuel at the lowest possible price,” said General Manager/CEO Ricky Davis. “We normally would pass on the savings to members throughout the year, but understanding the hardships many are facing because of the COVID-19 pandemic, we are doing what we can now to help members.”

The lower cost of power will be reflected in a lower Power Cost Adjustment (PCA) on members’ power bills processed beginning on April 9 through May 8. Members will see a credit in the PCA portion of the bill and the credit will vary based on how much electricity is used.

The savings will mark the second time this year Clay Electric members have had a lower power bill. In March, Clay Electric members were refunded $12 million in Capital Credits and entitled members saw a credit on their bill.

Capital Credits are a reflection of the fact that Clay Electric is a not-for-profit cooperative. This means that any margins left over at the end of the year after all expenses are paid is set aside in each member’s name to be refunded at a later date as Capital Credits. That’s a unique benefit of being served by a member-owned cooperative.