Jeff Davis Electric received final approval on a new wholesale power supply contract with NextEra Marketing, a subsidiary of NextEra Energy, one of the world’s largest energy companies. The Louisiana Public Service Commission voted unanimously in favor of the contract that will take effect in the spring of 2025.
JDEC followed all Commission rules and conducted a competitive request for proposal (RFP) whereby 13 companies submitted 95 qualifying bid proposals. “The approval of this contract will result in lower electric rates for our member-consumers,” said JDEC CEO Mike Heinen.
JDEC will have the flexibility to benefit from the most current wholesale market resources and can lock in annual rates when market conditions are favorable, something it cannot do under the current contract. “The stability in rates will reduce month-to-month fluctuations on electric bills, and lower rates will drive economic development in the JDEC service territory,” continued Heinen.
The contract with NextEra will allow JDEC to utilize the Midcontinent Independent System Operator (MISO) regional transmission organization to access power from multiple sources rather than tie themselves to the costs of particular power plants. This will also allow JDEC to pivot to new cost-effective technologies and resources as they become available.
During Wednesday’s Louisiana Public Service Commission meeting, Commissioner Mike Francis commended the JDEC staff and board of directors for negotiating the best possible rates for their member-consumers. “I recognize Louisianians are struggling to make ends meet due to rising prices and utility bills. Today is a big day, thanks to JDEC for putting their membership first to negotiate lower, more stable rates.”
Heinen concluded, “I want to thank the Public Service Commission for their leadership and support on this issue. Together we will pave the way to lower rates for people in southwest Louisiana.”