Electric Co-op Announces Rate Adjustments for Its Virginia Members
Effective with the electric bill the member receives during the first week of August there will be three different rate adjustments. The first of these adjustments will affect the line item DISTRIBUTION DEMAND on your electric bill. Prior to the adjustment it was $.04727 per kWh after the adjustment the rate will go down to $.04607 per kWh. This portion of the rate changes each year depending on what the Cooperative is charged for the electricity it purchases for the members’ needs.
The second of these adjustments will affect the line item CONSUMER DELIVERY CHARGE on your electric bill. So pursuant to the State Code of Virginia 56-585.3(A)(3) we are having to increase the CONSUMER DELIVERY CHARGE to equal 5% of our total distribution revenues which equates to a overall 2.5% increase in total revenues. Prior to the adjustment each account or meter served under the residential tariff was billed $23.00 per month. After the adjustment the charge will go up to $27.60 per month. The CONSUMER DELIVERY CHARGE is made to recover the cost of all the components used in the supply of electric to your meter. These components include the entire electric system from substations to wire and ultimately the facilities the Cooperative owns on your property. The CONSUMER DELIVERY CHARGE also recovers the maintenance of these facilities. The different types of maintenance include poles inspections and clearing of right of way. The CONSUMER DELIVERY CHARGE was last changed in April 2010 since then the Cooperative has absorbed the rising costs. Unfortunately, we can no longer absorb these costs as they have continued to increase.
A third change in rates will be a decrease in the FUEL FACTOR line on your electric bill. We recently got word from one of our power suppliers that the rate we pay for the fuel used to generate your electricity was going down from $.00942 per kWh to $.00221 per kWh. Over the next three to six months the fuel factor on each member’s bills will decrease accordingly.
Even as our industry goes through some turbulent times, your electric cooperative, Craig Botetourt will always be here for you. We appreciate everyone’s understanding in this matter.