In July, I wrote about the sharply rising costs of living and doing business. GVEC, its membership and our country as a whole are currently facing rapidly escalating prices across every sector of the economy. From fuel to groceries and everything in between, prices are increasing at a pace not seen in more than a generation.
Unfortunately, the price of natural gas has also been driven up in recent months to levels few in the industry could have anticipated even a year ago. This commodity is the primary fuel source used to generate electricity in Texas. In recent months, natural gas prices have reached levels that haven’t been seen since the financial crisis of 2008. For several months, GVEC has absorbed these costs by utilizing Generation and Transmission (G&T) reserve funds. As I mentioned in last month’s letter to members, this situation is simply not sustainable, and GVEC will have to adjust its rate.
As a result, beginning with bills dated on or after August 1, 2022, GVEC will be adjusting its G&T rate upward from $0.074 per kilowatt hour to $0.081 per kilowatt hour. This adjustment will result in an approximate $10.50-per-month increase for an average bill of 1,500 kWh:
Decisions such as these never come easy. GVEC’s Board of Directors have grappled many months with the possibility, watching natural gas prices closely and deferring in the hope that inflationary pressures might ease. Unfortunately, that hasn’t happened, and this adjustment could be delayed no longer. The determination to adjust rates is never taken lightly and never settled without serious discussion and analysis of all possible alternatives. We will never adjust rates unless absolutely necessary to cover costs and continue delivering reliable, dependable services to those we serve.
Please always remember, too, that GVEC is a not-for-profit cooperative, driven by a mission of service. We never charge more for wholesale electricity than we pay for it ourselves—our member’s G&T rate includes no markup. We’re happy to answer any questions you may have. Just call us at 800.223.4832, Monday-Friday, 7:30 a.m. to 5:30 p.m., and one of our customer service representatives will provide tools and resources available to support you.
I am always interested in your comments and feedback. Contact me by phone at 830.857.1152, by email at email@example.com or by mail at P.O. Box 118, Gonzales, Texas 78629.