December 8, 2022
This Notice was intended to have been included with your November electric bill but was not due to production issues at our bill processing contractor.
As a not-for-profit electric utility, Craig-Botetourt Electric Cooperative purchases power from electric suppliers such as AEP to build/maintain the electric system necessary to deliver the electricity to our members. Because Craig-Botetourt Electric Cooperative is a not-for-profit organization, we pass along the costs associated with purchasing electricity to our members without marking up costs to obtain a profit.
The Power Cost Adjustment (PCA), is a line item on your electric bill that allows Craig-Botetourt Electric Cooperative to make necessary adjustments as actual power costs increase or decrease. This portion of the rate is adjusted up or down, when necessary (currently about twice per year), depending on what the cooperative is charged for the electricity it purchases from its suppliers for our members’ needs.
Increased fuel costs incurred by our electric suppliers for natural gas, coal and #2 fuel oil have increased since the Ukrainian War began in February, causing the price we pay for energy to escalate well above budgeted costs in 2022. As a result, Craig-Botetourt Electric Cooperative can no longer absorb these price increases, and therefore, must pass these increased costs through to our members by increasing the PCA charge.
As you are likely already aware, the new PCA charge went into effect for bills for November2022 electric service. Prior to the adjustment implemented with your November bill, the PCA factor was $.00862 per kWh. Effective with the November adjustment, it is $.02379 per kWh.
Your cooperative works hard to acquire the most affordable energy available and provide the safest, most reliable distribution system while limiting the financial impact to our members. We are aware that the past few years have been a hardship for our members. The PCA adjustment only passes along the actual power cost increases incurred.