LUS Rate Increase: Why and How Much Will Your Electric Bill Go Up?

Lafayette, LA (KPEL News) - Do you cringe a bit when you get your electric bill in the mail? With the freeze in January and the typical see-saw winter weather we are experiencing in Louisiana, residents find it difficult to predict how much to budget for.

LUS customers will see a bump in their electric bills if the Lafayette City Council approves an ordinance that would change rates. LUS is making the request of the council in order to pay for a new Bonin Road Power Plant, and members will introduce an ordinance to that effect when it meets on Tuesday, February 20.

The current electricity generation station was built in 1965 and is no longer used to generate energy, according to LUS's website. The building houses the LUS operations center. The city-owned utility anticipates that they will lose electricity currently coming from a power station in Boyce, Louisiana. That plant was retired and will no longer provide electricity by 2027.

Lafayette currently has two, newer power stations, and LUS says:

The new power plant would provide a local source of electricity for the Lafayette community.

A plan to replace the Bonin Road Power Plant has been in the works since 2020, and it appears that LUS has done its due diligence in developing a project plan.

The power provider is hosting two public meetings to give a project update and answer any questions. Registration is not required, but it is recommended.

The first will be held on February 26 at the Lafayette Main Library. The second, on February 28, will be held at the South Regional Library.

As you might expect, the price tag for such an ambitious endeavor is not small. All in, LUS would spend $350-million to demolish Bonin and build the new facility.

As with any business, the additional cost would be passed on to the consumer, in this case everyone who is a customer of LUS.

LUS has developed a plan that would spread the cost to customers over a span of 4 years. The ordinance outlines how much the increase would be for each level of customer, and the plan is incredibly detailed. We've provided a link to the ordinance with all the nuances at the end of this article.

Each November starting in 2024, the customer service charge and cost per kilowatt hour will go up. That would continue through November of 2027.

In a letter to the Lafayette City Council, LUS says that the increase is expected to be $2-3 on average per month for a residential customers.

The council will introduce the ordinance Tuesday night, with final approval expected at the March 5 meeting.