KEYS ENERGY LOWERS POWER BILLS BY 12%

Keys Energy Services’ (KEYS) customers will experience a decrease in their June energy bills, as a result of reductions in natural gas costs.

An average KEYS’ residential customer consuming 1,000 kilowatt hours (kwh) of electricity during June will see a 12.3% decrease on their total energy bill from May to June. The bill will be $136 compared to $155 for the same consumption in May. The amount of the decrease will vary based on how much electricity a customer uses. One year ago, the same consumption would have resulted in a bill of $210. The 35% decrease in bills over the last year is directly attributable to reductions in natural gas costs.

The power cost adjustment (PCA) charge for June will be 25 cents per 1,000 kwh, compared to $19.25 per 1,000 kwh in May. The utility’s Energy Charge is $108.40 per 1,000 kwh for residential customers and assumes wholesale power costs of $62.20 per 1,000 kwh. When energy costs fluctuate above or below that $62.20 per 1,000 kwh, KEYS passes the increase/decrease along to customers via an extra charge or a credit.

“Natural gas prices have decreased significantly from one year ago, and we are able to pass those savings on to customers,” said Lynne Tejeda, KEYS’ general manager & CEO. “The price of natural gas became extremely volatile in 2022 and surged to unprecedented levels domestically and internationally.”

She cited disruptions in natural gas production, reduced rig counts during the pandemic, lower gas storage inventory, and the exporting of fuel as a result of the war in Ukraine as drivers of the natural gas price increase.

In recent years, Keys Energy’s PCA appeared as a credit on energy bills. The credit was replaced with a charge in January 2022, with additional increases in March and June of that year before decreases were implemented beginning in October 2022. Tejeda did not rule out future power cost adjustments.

“As the cost of natural gas fluctuates, KEYS will adjust the PCA charge,” she said. “We will be monitoring costs carefully and working with our power supplier to mitigate increases.”

Tejeda said the total bill is driven by both the rate and energy usage. The rate is decreasing, but as we move into the warmer summer months, consumption will likely increase. Conservation is helpful and customers can help offset the PCA charge by consuming less energy if they are interested in making some adjustments. She urged KEYS’ customers to log on to keysenergy.com and click on the “Top 10 Energy Saving Tips” link for tips on how to best conserve energy. While online, customers can sign up for a free home energy survey, rebates for qualified energy efficient appliances, and receive information on how to better track their monthly energy usage.