Sault Ste. Marie, Michigan
December 22, 2004
Ernie Mass V.P. - Engineering & Opperations -
906-632-5175
Edison Sault to pass on purchased power savings to customers.
Edison Sault Electric Company announced today that it will implement a reduction in its Power Supply Cost Recovery (PSCR) effective with January 2005 billings. A typical residential customer using 1,000 kWh a month will see a $1.74 reduction in his or her electric bill, or an approximate 3% reduction.
The PSCR clause allows Edison Sault to pass through to its customers any increases or decreases in the cost of obtaining power supply. The reduced PSCR factor culminates from an updated forecast of 2005 power costs and lower costs being experienced in 2004 due to increased hydroelectric generation.
Elevation levels on Lake Superior have returned closer to their long-term average levels, which has resulted in increased water releases and increased power production. Normally, Lake Superior reaches its peak elevation levels in late summer, and then starts a gradual decline until spring when the snow melts. This year, Lake Superior continued to rise longer than normal, and as a result, the Lake Superior Board of Control authorized more water to be released through the Company’s hydro plant.
“Usually we start to see a gradual reduction in water flows beginning in the fall,” said Ted Gauthier, Edison Sault’s hydro plant manager. “However, this fall we saw a steady increase in water releases. In the month of November, we were able to run the hydro plant nearly full-out, 24 hours a day,” said Gauthier.
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. As more hydro power is produced, Edison Sault can lessen the amount of electricity purchased from other sources, thereby reducing the cost of electricity to its customers.
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