Mar. 10--A decrease in the price of natural gas means consumers will get a break on their March electricity bills.

The Kerrville Public Utility Board announced Monday that for March residential electricity bills, electricity cost will be $95 per 1,000 kilowatt-hours -- down from the $110 per 1,000 kilowatt-hours that has been in effect since November 2008. That equates to a one-and-a-half-cent decrease per kWh, or a 14-percent reduction.

Last year, KPUB had two rate hikes after natural gas costs rose following multiple hurricanes in the Gulf of Mexico.

The first in July, raised prices from $88 per 1,000 kWh to $107 per 1,000 kWh. The second in September, raised the price again to $130 per 1,000 kWh.

In November, the rate dropped to $110 per 1,000 kWh.

"With this cost reduction, the staff at KPUB projects that funds will be available to repay the $600,000 to the Rate Stabilization Fund during April 2009. The Board of Trustees had approved this plan last August 2008 when they applied the $600,000 toward customer bills," according to a KPUB press release.

KPUB receives about two-thirds of its electricity from the Lower Colorado River Authority and one-third from CPS Energy in San Antonio.

"The cost of wholesale power in the Texas energy market is the main driver for the electricity bills that KPUB receives," said Trace McCuan, General Manager and CEO. "Approximately 80 percent of KPUB revenues are used to purchase power. The remaining 20 percent cover local utility operations, debt service and city payments."

McCuan said he hopes KPUB will be able to lower rates again this summer, barring any hurricanes in the Gulf that could send natural gas prices soaring again.

Last year, the state averaged $150 per 1,000 kWh.

Bandera Electric Co-Op prices decrease 20 percent

BEC's members saw a reduction in their bill starting last month, as well.

Citing decreases in natural gas prices, BEC dropped its rate from 11.1 cents per kWh to 8.9 cents per kWh.

The average BEC household consumes about 1,300 kWh's per month.

A typical bill in January would have been $164. With the new reductions, the same bill for the same kWh would be $135.

What does it mean

The average home in Kerrville, served by KPUB, uses 1,350 kWh's of power each month during the winter.

--Old rate: A home using that amount of power would pay $148.50.

--New rate: That same usage would be $128.25.

-----

To see more of the Kerrville Daily Times or to subscribe to the newspaper, go to http://www.dailytimes.com/.

Copyright (c) 2009, Kerrville Daily Times, Texas

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.