February 15-18, 2009 Washington State Convention Center Seattle ...

2
ELECTRIC RATES IN THE CATFISH INDUSTRY
Steeve Pomerleau
Aquaculture/Fisheries Center
University of Arkansas at Pine Bluff
Mail Slot 4912
1200 North University Drive
Pine Bluff, AR 71601 USA
spomerleau@uaex.edu
Electric rate schedules from several electricity providers in Alabama, Arkansas, and Mississippi were studied to quantify the
differences in electric rates paid by catfish farmers. Rate schedules can be quite complex and composed of numerous types of
charges. All those charges need to be taken into account when comparing rate schedules. There are six major types of charges:
1) energy charges in $/kWh, 2) demand charges in $/kW, 3) customer charges in $/month, 4) minimum charges, 5) taxes, and
6) rider schedules. Rider schedules are designed to adjust another rate schedule. They are often overlooked but can constitute a
major part of a customer electric bill.
As of June 2008, only three of the nine studied electricity providers offered a time-of-use schedule (with different on-peak and
off-peak hour rates) to catfish farmers: Alabama Power Co., 4-County Electric, and Entergy Mississippi Inc. The rate schedule
of Alabama Power Co. resulted in the lowest total annual electricity costs (29 to 46% lower than other studied rate schedules).
The off-peak energy rate of Alabama Power Co. was 2.3893 ¢/kWh, but when all charges were taken into account the electricity
cost was estimated at 6.5 ¢/kWh as opposed to an average of 10.8 ¢/kWh for the eight other studied schedules. However,
results may vary. Electric rates change frequently. Fuel cost adjustment riders and other rider schedules may change monthly
or quarterly. Besides, the results do not reflect some credits and/or rebates issued by some Mississippi electric cooperatives in
recent years. These credits were funded by credits from the South Mississippi Electric Power Association (SMEPA).
Table 1. Summary of studied 2008 electric rates applicable to catfish farmers and estimated annual electric costs for a block of
four ponds with one well and eight 10-hp paddlewheel aerators.