Bluebonnet Lowering Rates

September 12, 2006

(GIDDINGS, TEXAS) Beginning this week Bluebonnet Electric Cooperative members will see a decrease in the Power Cost Recovery Factor (PCRF) portion of their monthly electric bills. The effect on consumers varies according to their use, but the average homeowner who uses 1,000 kilowatt hours of electricity a month will see a decrease of about $10.00.

Last year natural gas prices were at record highs, and to reflect this increase, Bluebonnet had to adjust its PCRF. The PCRF represents the difference between Bluebonnet's set rate, and the price that Bluebonnet has to pay for power. Bluebonnet last reduced the PCRF in August 2006, and also in April 2006 when the LCRA reduced its wholesale power rate. With a lower PCRF, members could ultimately pay less on their monthly bills.

Bluebonnet continues to partner with the LCRA as our wholesale power provider, which is among the lowest-priced power producers in the state, based on the most recent surveys. The LCRA's diverse power portfolio, which includes power from coal, hydroelectric, wind and natural gas sources, has helped it keep its costs lower than most utilities. The LCRA has been a leader in developing renewable energy resources and currently supplies more energy from clean hydroelectric and wind power than any other community-owned power provider in Texas.