West Memphis utility bills soar

Spike blamedon coal shortage, solar energy coming

By JOHN RECH

news@theeveningtimes.com

Utility customers gobbled up electricity during two ice storms and an extended cold streak over the past month. Some customers blasted West Memphis Utilities on social media and customers logged complaints as some bills doubled the norm. Other claimed they had the highest utility bill ever. Utilities General Manager Todd Pedersen explained the jumped-up bills.

“I don’t doubt what customers are saying,” said Pedersen, “especially if their meters were read before the first ice storm and then not again until after the second one. Demand’s up. Usage was higher. Consumers bought more fuel.” While demand was high coal supplies remained low pushing natural gas prices higher. The city owned shares in two coal fired power plants that have traditionally served as a hedge negating natural gas price hikes. It worked out differently this winter and cost for natural gas used to produce electric power soared. Not unlike other commodities in the pandemic era energy supply deliveries have not kept with winter season demands.

“Our coal plants did not

See UTILITY, page A3

PEDERSON UTILITY

From page A1

run at all in December- zero Kilowatt hours- and we worried about a cold winter back then,” said Pederson. “Our coal plants are running at a controlled rate governed by coal availability. There has been supply chain issues with delivering coal to our plants. The cost per Kilowatt hour was slightly less this month than last but usage climbed making for higher bills.”

With the city coal plants running at levels too low to supply needs the switch to power produced by natural gas proved costly.

“It’s not economical to buy electricity off the open market,” said Pedersen. “I had one customer I talked to say that his fuel adjustment costs had doubled. I pointed out that his energy consumption had also doubled.”

The city owned utility took a step last year to avoid paying premium prices for power on the open market in the future. Construction for new electric sources for the utility was approved by utility commissioners, city council members and the county Quorum Court. While plans were approved, a new economical solar farm was not yet on-line for the chilly month reflected on current bills.

The utility bought solar power from NextEra Energy Resources. The new solar farm was being built west of Interstate 55 near Turrell. NextEra is the world’s largest generator of solar and wind power. Construction was planned over the next three years. The proactive move came after the federal government ordered the city’s coal plants mothballed by 2030. The GM said solar would level prices for a whole generation of city utility customers.

“We took the initial step,” said Pedersen. “We bought solar at a low fixed rate for a thirty-year span.”