Fuel Cost Rate Increase

UPDATE 10/1/24:   The temporary additional fuel cost due to the 2023 drought discussed here, has ended.  it is no longer reflected in SLEMCO customer bills.

The 2024 crawfish season isn’t the only thing that will be affected by our recent drought. So will the fuel portion of your SLEMCO electric bill. We’ve been notified by the folks who generate the electricity you use, that a temporary cost increase has gone into effect for the fuel portion of what it takes to generate your electricity.

Why is that? The electricity you use is generated by coal that’s transported down the Mississippi River to a power plant in New Roads, Louisiana. Historically low water levels, caused by the recent drought, have significantly increased costs to transport coal down the river for the past few months.

Costs associated with the fuel used to generate your electricity is a straight “pass-through” on your bill. SLEMCO doesn’t receive a single penny from the fuel portion of your monthly electric bill.

Coal shipments aren’t the only shipments being affected. Farmers shipping their crops to ports along the Mississippi River for processing have experienced the same rising transportation costs.

We understand how unexpected cost increases can affect the families and businesses who rely on SLEMCO for electric power. So, rather than bill our customers all at once for these temporary additional monthly costs, SLEMCO has decided to spread them out over the next twelve months to minimize the effect on you and your family.

We will continue to closely monitor the situation and keep you informed.  Hopefully, 2024 will experience a more normal rainfall than the last two years and the additional coal transportation expenses can be eliminated once and for all.