Abbeville leading way to electrical savings for customers in new year

Electrical customers in Abbeville will see some savings on their utility bills early in the new year.
Wheels have already been set in motion to lead to that point.
On Dec. 19, 2013, Midcontinent Independent Transmission System Operator, Inc. (MISO) assumed the direction of electrical power
generation, and transmission for electrical consumers situated from the Gulf Coast of Louisiana northward into Canada. The goal of MISO is to lower the cost of electricity to the retail consumers served within its territory, or footprint, by acquiring electrical power from the most economical and pollution free generators in the marketplace.
The City of Abbeville will become one of the first municipalities in the new MISO footprint to take full advantage of MISO’s efforts. By action of the Abbeville City Council the city’s current wholesale electrical supply contract with Cleco will terminate a year early at midnight on Dec. 31, 2013, and will be replaced by an agreement with Exelon Generation Company, LLC. The new contract is tailor made to take full advantage of the MISO concept, according to city officials.
“Our goal is to always provide the citizens of Abbeville with the least expensive per kilowatt hour rates possible,” Abbeville Mayor Mark Piazza said. “Much time and effort has been expended by the Electrical Supply Committee, composed of Councilmen Francis Plaisance and Francis Touchet Jr., myself, our electrical engineering consultants, Raleigh Cox and Harold Beard, and city attorney, Ike Funderburk. As a result of the recommendations made by the committee to the City Council, the city is now a direct Market Participant with MISO.”
That offers plenty of options in the future.
“In the future this will give the city flexibility to ‘shop the marketplace’ for the best rates and service available,” Piazza said. “We are very pleased to partner with Exelon Generation for the next three-and-a-half years.
“Because Exelon Generation has years of experience working within a MISO-type environment, its knowledgeable professional staff as a been a great assistance to the city during this transition period.”
The new contract with Exelon Generation begins Jan. 1, 2014. The new per kilowatt hour rates will be reflected on the February utility bills. According to electrical engineer Raleigh Cox, the new wholesale cost to the city will be approximately $0.055 per kilowatt hour, as compared to the current rate which averaged more than $0.07 per kilowatt hour for the 2013 calender year. Assuming the residential and business consumers maintain a constant level of usage, they can expect a noticeable reduction in their monthly bill.
“I appreciate having the opportunity,” Councilman-at-Large Francis Plaisance said,
“to work wit the Mayor, Councilman Touchet, our city attorney, the consulting engineers, and all other parties involved in the negotiation process.
“The end result of a savings to our consumers comes at a critical time in our economy.”
Touchet, District B, agreed.
“We are truly fortunate to be able to provide our citizens with the most affordable electrical rates in the surrounding area,” Touchet said.
Councilman Louis Joe Hardy, District A, echoed that sentiment.
“I am glad we can provide, cheaper utilities to our citizens,” Hardy said.
As representative of District C, Councilman Brady Broussard Jr. said, “I am grateful to have worked with the committee and electrical engineer consultants on this important contract that will provide more cost-effective electrical service to the residents and businesses in the City of Abbeville.”
Councilman Wayne Landry, District D, added, “This is great news for our city. We first want to thank the Mayor and committee for working so hard on a great deal for the citizens of District D and the entire city.
“While we will all be looking forward to cheaper light bills, we must continue to work hard to conserve energy.
For the last 30 years, The City has enjoyed a market advantage over other municipalities because it owns the Walter “Pete” Noel Sub-Station. For years to come, the City of Abbeville will enhance its position because it is now a Market Participant in MISO, according to city officials. Those officials also encourage its electrical customers to practice energy conservation methods to reduce their use of electrical power and thus minimize their utility bill.