Clay Electric raises rates again due to natural gas prices

Clay Electric (FILE)
Clay Electric (FILE)(Clay Electric Cooperative Inc.)
Published: Sep. 20, 2022 at 4:54 PM EDT
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GAINESVILLE, Fla. (WCJB) - A North Central Florida electric cooperative is attributing another price hike to high natural gas prices.

On Tuesday, Clay Electric sent customers an email explaining the most recent increase in electric rates. It comes after the utility has already raised prices multiple times this year.

In the email, the cooperative explains the $20 million budget shortfall in the fourth quarter due to the “volatile natural gas market.” Officials say they are imposing a substantial rate increase.

The Power Cost Adjustment is increasing by $19.60 per 1,000 kWh starting in October. They say the average family using 1,000 kWh a month will pay $159.50.

According to Clay Electric CEO Ricky Davis, natural gas makes up about 70% of the fuel used by to generate power in Florida.

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“Clay Electric has never seen increases in power costs of this magnitude,” said Davis. “These increases have put our energy costs $65 million over budget this year. The most recent increase was $19.8 million, which is why we must take the extraordinary action of raising our PCA.”

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