New Braunfels Utilities Shifts to Monthly Cost of Power Forecasting in Response to Extreme Volatility in the ERCOT Market
FOR IMMEDIATE RELEASE
Contact: Melissa Krause
Chief Communications and Strategy Officer
830.629.8440 | mkrause@nbutexas.com
(New Braunfels, TX – August 31, 2023) – As New Braunfels Utilities (NBU) customers look to wrap up a record-setting summer and prepare for the fall season, NBU remains committed to timely communication to help customers project their electric utility costs. Beginning September 1, 2023, NBU is shifting to monthly power cost forecasting instead of quarterly forecasting and will place future updates on nbutexas.com/rate-breakdown.
The change in forecasting duration is because the extreme volatility in the ERCOT market simply does not allow for accurate forecasting beyond a month, and we do not want to publish inaccurate or misleading forecasts. Additionally, it is NBU’s operational practice to adjust power costs on a monthly basis to address any market volatility, so this forecasting change will allow for more accuracy and align with NBU’s operational practices.
Current projections indicate NBU customers will see an increase in the September rate compared to August. This increase is primarily driven by higher costs and volatility in the ERCOT market. The ERCOT market has experienced increased load growth (electricity use) and all-time high demand driven by extreme record-setting heat conditions throughout Texas since June. Compounded with the market redesign and more conservative grid operations results in more expensive power. The State of Texas has made the decision to prioritize electric reliability over affordability, and that is what is driving up the cost of power. So, what is the impact on customer bills? An average customer that uses 1,200 kilowatt-hours (kWh) in September 2023 will see an approximate 8.4% increase, totaling $12.00.
To help customers manage their utility costs, NBU offers ways to save on their monthly bills by initiating conservation techniques to help lower their use. Learn more at nbutexas.com/energy-efficiency-resources. To help customers estimate their utility bills, an NBU utility bill calculator is available 24/7 at nbutexas.com/bill-calculator.
September 2023 total cost of power forecast is based on a residential average of 1,200 kWh usage and is summarized in the table below:
| Line Item | September | September Monthly Electric Bill |
|---|---|---|
| Generation | $.0685 | $82.20 |
| Transmission | $.0172 | $20.64 |
| Delivery Charge | $.0195 | $23.45 |
| Replenish Reserves | $.0075 | $9.00 |
| Per kWh Charge Total | $.1127 | |
| Electric Service Availability Charge | $20.00 | $20.00 |
| Total Bill* | $155.29 |
Definitions for each line item on the NBU bill can be found at nbutexas.com/rate-breakdown.
About New Braunfels Utilities:
New Braunfels Utilities (NBU) strives to be a trusted community partner dedicated to excellence in service and is one of 2,000 community-owned, nonprofit public power electric utilities in the nation. With a mission of strengthening our community by providing resilient essential services, NBU is governed by a Board of Trustees comprised of residents appointed by the New Braunfels City Council. New Braunfels Utilities provides electric, water, and wastewater services. Utility revenues are continually invested back into the systems of the customers, which benefits the community. New Braunfels Utilities makes an annual transfer to the City of New Braunfels, which in turn helps to pay for services such as fire, police, and parks. Follow NBU on Facebook at facebook.com/newbraunfelsutilities, on Twitter at @nbutexas, and to learn more, visit nbutexas.com.