SLEMCO bills will go up

• By RICHARD BURGESS
• Advocate Acadiana bureau
• Published: Jul 7, 2009 - Page: 1BA

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LAFAYETTE — SLEMCO customers may see utility bills rise an average of $2.68 a month for two years to help pay for repair of hurricane damage last year and to elevate power substations in low-lying flood-prone areas.

The company, which serves about 94,000 customers in the Acadiana area, has applied to the state Public Service Commission for approval of the rate increase, which is expected to generate about $7.7 million.

About $5.2 million would be used to elevate electric substations in lower Vermilion Parish, and the remainder would cover repairs after hurricanes Gustav and Ike that were not reimbursed by the Federal Emergency Management Agency, according to information from the company.

SLEMCO plans to elevate substations in Erath, Esther and Cow Island to a level 5 feet above the highest flood surge seen in those areas in recent years, said George Fawcett, director of governmental affairs for SLEMCO.

He said that when a substation floods, the communities it serves are left without power until the water recedes, which in some areas of Vermilion Parish could be several days.

State Public Service Commissioner Jimmy Field, who represents the Lafayette area, said the rate increase request will be scrutinized, but he expects approval if there are no obvious problems.

“Their rates are some of the lowest in the state,” he said.

The PSC regulates electric rates in Louisiana, allowing companies to make a certain return during normal operations and to recoup costs associated with major upgrades.

SLEMCO is asking the commission to approve a rate increase of 0.0018 cents per kilowatt hour.

The company expects that increase to amount to $2.68 a month for the average customer, based on usage of 1,497 kilowatts per month.

Fawcett said the increase, if approved, would appear as a line item on electric bills and would be dropped in less than two years if the money needed for repairs and upgrades is raised before then.

The PSC has not set a date for a hearing on the request.

SLEMCO is a cooperative, so the company has no investors, and revenue goes to the maintenance of the system and to administration.