Sault Ste. Marie, Michigan
Jan 23, 2004
Lee M. Baatz Assistant. V.P. – Rates
906-632-5170
Cold Weather, Purchased Power, Result in High Bills
The combination of cold weather and higher purchased power costs has resulted in increased utility bills for the customers of Edison Sault Electric Company. Following a relatively mild December, the arrival of consistently cold weather in January and the flow-through of increased purchased power costs have caused electric bills in Sault Ste. Marie and the other areas served by Edison Sault to increase considerably.
“So far in January our residential electric bills are running much higher than a year ago,” said Jeff Stoll, Edison Sault’s customer accounting supervisor. “The National Weather Service data for Sault Ste. Marie shows temperatures 26% colder so far in January compared to last year, which was also a very cold winter. The increase in electric usage for many of our customers will be much higher than normal given the cold weather.”
Also contributing to the higher electric bills is the flow-through to customers of increases in purchased power costs through the Power Supply Cost Recovery (PSCR) clause that Edison Sault announced last fall. The approximate 5.2% increase, the first in eight years, became effective in January and is passing increased purchased power costs unto Edison Sault’s customers. Edison Sault currently uses low-cost hydro generation for about 40% of the electricity it sells. The remaining 60% must be purchased from other outside (and higher cost) sources. The Michigan Public Service Commission formally approved Edison Sault’s PSCR clause forecast for the rest of the year with an order issued on January 22, 2004.
Stoll recommends that customers concerned about the amount or payment of their bills should call customer service and should also consider the Company’s budget payment plan in the future. “We will work with our customers so that their bills can be paid,” said Stoll.
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