One year ago, the City of Minden made one of the most important financial decisions in our city’s recent history when we changed electricity providers. Our goal was straightforward: We wanted to make Minden a more affordable and competitive place to live, work, and do business.
That goal matters because every family feels the impact of everyday expenses. Every business works to control costs. When a city can reduce its operating expenses without sacrificing service, those savings help strengthen the entire community.
For many years, Minden purchased its wholesale electricity through AEP SWEPCO. After extensive research, financial analysis, negotiations, and legal review, the City Council and this administration approved a new partnership with the Louisiana Energy and Power Authority, or LEPA.
LEPA is a partnership of Louisiana cities that work together to purchase electricity. By combining their purchasing power, member cities are able to secure more competitive wholesale electric rates than many could obtain on their own.
When we announced this transition, we projected that Minden’s wholesale cost of purchasing electricity would decrease by approximately 20 to 25 percent. One year later, we can measure the results.
During our final full year purchasing wholesale electricity through AEP SWEPCO, the City’s average wholesale cost was 9.27 cents per kilowatt-hour. During our first full year with LEPA, that cost dropped to 7.28 cents per kilowatt-hour. That represents a 21.5 percent reduction in the City’s cost to purchase wholesale electricity.
That matters because buying electricity is one of the City’s largest operating expenses. Lower wholesale costs place Minden in a stronger position to provide competitive electric service while continuing to operate and maintain the electric system our community depends on.
But the question most citizens really care about is simple: How does Minden compare today?
According to the Louisiana Public Service Commission and LEPA’s residential electric bill comparison, a typical home using 1,000 kilowatt-hours of electricity each month has an average monthly electric bill of $129.98 in Minden. That compares with $129.28 for Claiborne Electric, $141.47 for Entergy Louisiana, and $149.29 for AEP SWEPCO.
Perhaps the most remarkable part of that comparison is where we started. Just one year ago, Minden had the highest average residential electric bill in this same statewide comparison. Today, our electric rates are competitive with many of the utilities that have long been recognized for providing affordable electric service.
While there is always more work to do, this first year demonstrates that the direction we chose was the right one. As we begin our second year with LEPA, we will continue to measure our performance, monitor our costs, and share those results publicly. The citizens of Minden deserve a government that is transparent, accountable, and focused on continuous improvement.
I want to thank the members of the City Council, our utility department, our administrative staff, our legal counsel, and the leadership of LEPA for the professionalism and dedication they brought to this effort. This accomplishment reflects what can happen when people work together with a shared commitment to serving our community.
Thank you for allowing me to serve as your Mayor. Together, we will continue moving Minden forward.
Nick Cox
Mayor, City of Minden
Unless otherwise noted, the information in this report is based on official data from the Louisiana Energy and Power Authority, the Louisiana Public Service Commission, and the City of Minden’s utility records.