This week, 1803 Electric Cooperative, Inc.'s application for approval of power purchase agreements and cost recovery to begin in 2025 was heard and approved by the Louisiana Public Service Commission (LPSC). The approval is expected to bring lower rates to the members of Washington-St. Tammany Electric Cooperative and the four other cooperatives that make up 1803.
The LPSC's approval culminated after almost four years of efforts by industry experts to determine the best path forward for 1803's members and their consumers.
1803 is a member-owned large electric cooperative consisting of five smaller member-owned electric cooperatives: Beauregard Electric Cooperative, Inc.; Claiborne Electric Cooperative, Inc.; Northeast Louisiana Power Cooperative, Inc.; South Louisiana Electric Cooperative Association; and Washington-St. Tammany Electric Cooperative, Inc.
Washington-St. Tammany Electric Cooperative is the largest of the five, but all together 1803's members serve approximately 120,000 consumers in Louisiana.
Starting in 2025, the member ratepayers of 1803 will see the benefits that reliable power supply with lower rates and cleaner energy will bring. The portfolio will consist of highly efficient natural gas generation, utility scale solar projects, fixed price contracts and hydroelectric generation. 1803 will not own or operate any of the power plant resources.
As many Louisiana residents know, 1803 represents the date of the Louisiana Purchase.
Four of the five LPSC commissioners voted in favor of the 1803 application, including Foster Campbell, Lambert Boissiere, III, Mike Francis, and Dr. Craig Greene. LPSC Chairman Greene opened the matter stating: "1803 followed all of the commission rules and conducted a competitive RFP, whereby 31 bidders put forth 197 qualifying offers. This robust response to 1803's RFP I think is a powerful indication that a broad cross-section of companies want to invest in Louisiana's energy future and deliver lower rates with reliable, flexible options to customers......The portfolio will reduce electric rates for 120,000 customers ...... This is a great day for the state of Louisiana and for this commission."
Charles Hill, General Manager of 1803 and also General Manager of Washington-St. Tammany Electric Cooperative, said, "The approval of 1803's proposed power supply portfolio is a significant victory for our member cooperatives and the members they serve. Being able to provide a reduction in future rates for our members is extraordinary. We could not have done this without the support of our membership and the talented 1803 team working with the LPSC. We are very grateful for their efforts."
Kyle Marionneaux of Marionneaux Kantrow, LLC, legal counsel for 1803, led the 1803 team through the process at the LPSC.
