Beauregard Electric Cooperative, Inc. (BECi) consumers
To receive over $1.65 million in credit refunds
DeRidder, LA -- The BECi Board of Directors and the Louisiana Public
Service Commission (LPSC) will disburse more than $1.65 million in credits
to eligible* consumers of BECi in September. According to Mike Pigott,
Beauregard Electric Cooperative, Inc. (BECi) General Manager, in July
2000 the LPSC approved a plan to issue more than $169 million in refunds
to electric cooperative consumers throughout Louisiana, bringing a conclusion
to the Cajun Electric bankruptcy, BECi's wholesale power supplier.
This September most Louisiana electric cooperative consumers will
also receive a credit on their electric bills from $15 million retained
from the Cajun Electric settlement for refund in 2002. BECi estimates
its portion will be $1.65 million. Qualified* consumers will receive
a credit on their September bill and will reflect approximately ten
percent of the August 2000 refund.
The credit to be applied this September is the second of three refund/credits
authorized by the LPSC to disburse moneys accumulated in the Cajun interest
escrow account. In August 2000, more than $11 million was refunded to
BECi consumers with the final refund scheduled to be in the form of
a credit in August 2004.
While most consumers will see the credit listed on their bill, those
who were not Co-op consumers during the period the escrow account was
accumulating interest cannot be included.
Since the Cajun bankruptcy began in late 1994, rates have dropped
25 percent. Rates across Louisiana continue to remain below the national
average and BECi's rates are among the lowest in the state.
To aid in understanding the credits, the following are some of the
most often asked questions concerning the Cajun bill credit:
Q. Where did this money come from?
A. The refund and credit comes from a special escrow account established
during the Cajun Electric bankruptcy process. During the bankruptcy,
the Trustee overseeing Cajun's assets wanted to continue collecting
interest on debt to the Rural Utility Service (RUS) owed by Cajun Electric
which was not required under Federal law. The LPSC and the Committee
of Certain Members (seven Louisiana electric cooperatives) objected
to this, resulting in payments totaling more than $169 million being
held in an "interest escrow account" until the matter was
settled. The refund/credits had nothing to do with rates but rather
was a product of a legal issue as to whether consumers should pay interest
while Cajun was in bankruptcy.
Q. What period of time does the rebate cover?
A. The rebate/credit applies to the escrow that existed from April 1,
1999 to March 31, 2000. Anyone who received power prior to that time
or became a Co-op consumer after March 31, 2000, is not included.
Q. How much of a credit should I get?
A. The credit is based on the amount of electric power used by a consumer
from April 1, 1999, to March 31, 2000. The more power used over this
period, the larger the credit. The credit is based solely on how much
electric power you used over the entire 12-month period.
Q. Why did my neighbor get a larger credit than I did?
A. Any difference in credit amounts is due entirely to the amount of
power used over the 12-month period of the refund. If your neighbor
got a bigger credit, they used more power than you did.
Q. Does this credit mean I was charged too much for electricity?
A. The credit has nothing to do with rates. It only covers that part
of bills that involved interest payments for wholesale power purchased
by consumers.
Q. Why did it take so long to receive the credit?
A. The refund could not be issued prior to the conclusion of the bankruptcy
case. Cajun's assets were transferred to its new owners on March 31,
2000. The LPSC, after considering the most equitable disbursement of
the funds accumulated, decided on July 19, 2000 on the method to be
used in disbursement of the fund. The LPSC ordered the refunds to be
made in 2000, 2002 and 2004.
While the August 2000 refund checks and this new credit are important,
the long-term benefits consumers have received from lower wholesale
power costs have been far greater. Consumers have saved on their electric
bill every month since the Cajun settlement.
*Eligible/Qualified consumers: A consumer who was a member and had
electricity usage between April 1, 1999 and March 31, 2000 and is a
current member.
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