|GP&L Decreases Fuel Cost Factor for the THIRD Time in 2006
GARLAND, Texas, October 20, 2006 - The Garland City Council has approved another decrease in the fuel cost factor component of the rate for electric service provided by Garland Power & Light (GP&L). This decrease will become effective November 1, 2006. The adjustment reflects a current downward trend in the market price for natural gas.
In addition, GP&L's off-peak (winter) rates also take effect November 1, 2006, which will result in lower overall electricity bills for GP&L customers. The lower fuel cost factor, coupled with the annual institution of off-peak rates, will lower the overall electric bill for GP&L customers for 1000 kWh by 11.3% or $14.82 when compared to on-peak (summer) rates and the current fuel cost factor.
This is the third decrease in the fuel cost factor this year. Other decreases took effect March 1 and May 1. Because GP&L is a municipal utility which has not opted into electric retail deregulation, the City Council can react much more quickly to changes in the natural gas market and maintain fuel cost adjustments accordingly.
The cost for electric service provided by GP&L continues to be among the lowest when compared to offers listed for the TXU Electric Delivery service territory on the Texas Electric Choice website. With the institution of off-peak rates and the decrease in fuel cost factor, GP&L customers will pay $116.22 for electric usage of 1000 kWh, while TXU price-to-beat customers will pay $144.11.
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