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WREC To Raise Electric Rates

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By TONY MARRERO Hernando Today

The Tampa Tribune

Published: December 26, 2008

BROOKSVILLE - Withlacoochee River Electric Cooperative customers will see a 4.7 percent rate increase starting Thursday.

The state's utilities commission has approved the rate increase requested by the nonprofit cooperative, known as WREC.

The increase adds about $5.30 to the cost of 1,000 kilowatt hours, a little less than what the average WREC customer uses each month. That much power will now cost about $118.30.

The increase is on the low end of the range WREC officials predicted earlier this year. The cooperative first vowed to keep the increase to single digits, then narrowed that further by promising a boost of no more than 7.25 percent.

There is no good time for a rate increase of any size, said David Lambert, WREC's manager of member relations.

Still, keeping the increase to 4.7 percent is "the absolute best we were able to do," Lambert said.

"We have really done some extreme cost-cutting measures around here," he said.

The cooperative, one of 10 electric cooperatives that own Seminole Electric, a wholesale power supplier, has slashed its contract staff and reduced its regular work force by 16 through attrition. WREC has about 80 fewer people on staff than it did a year ago, Lambert said.

The cost of fuel to produce electricity is decreasing. Coal prices have dropped after spiking earlier this year. Natural gas also costs less now than it did six months ago.

But CSX Transportation plans to nearly double the fees it charges to move coal by rail to Seminole's Palatka power plant. That will negate much of the savings the cooperative has enjoyed by streamlining its operation and cutting contract employees, Lambert said.

Seminole has filed a formal complaint against CSX with the federal Surface Transportation Board, contending the increases are unreasonably high.

WREC also has invested millions of dollars in new infrastructure to serve developments that are far behind schedule and have few paying customers, Lambert said.

This latest rate increase comes after a boost of 11 percent earlier this year.

There is some news customers might find encouraging.

WREC has refunded about $14 million this year, or roughly the same as last year, Lambert said. Pasco County will receive more than $200,000. The company gives back profit to its "members" through credits on a December bill. The credits are divided up based on the amount of energy used and the duration of membership.

WREC serves more than 200,000 customers in six counties.

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