Rate Case

New Rates Take Effect Oct. 1

Earlier this year, as communicated in Cooperative Living magazine, the cooperative’s website and local newspapers, A&N Electric Cooperative filed for a rate adjustment to help it stabilize the annual revenue needed to cover its cost of service.

The Virginia State Corporation Commission approved the cooperative's proposal with some stipulations in late August.

The new rate structure takes effect on Oct. 1, 2018.

The rate adjustment will increase the monthly access charge and will establish seasonal rates based on four summer months (June-September) and eight non-summer months (October-May).

This is the cooperative’s first true rate increase since 1991.

“This rate adjustment will give A&N the revenue needed to cover the cooperative’s fixed costs that are associated with the operation and maintenance of our distribution facilities,” said ANEC CEO Butch Williamson. “These proposed seasonal rates, will more accurately reflect our members’ energy use throughout the year.”

The cooperative is moving to a slightly higher fixed monthly access charge from $8 to $14, which will reduce the revenue needed in the volume metric portion of a member’s bill.

As a member of ANEC, you make an investment in the co-op each month when you pay your bill. That investment benefits you and the community as a whole immediately and in the future.

The access charge is a monthly investment that helps ANEC cover the expenses of operating and maintaining the electric distribution system. Staying ahead of cybersecurity threats and maintaining electrical distribution equipment and substations take careful planning and require substantial resources. The access charge keeps that equipment up to date and operating properly. It also ensures staff is trained to respond to issues and keep electricity flowing safely to your home or business.

Regardless of how much electricity a particular family uses, the cost of delivering power to that house is the same. As a not-for-profit electric distribution cooperative, we believe the operational costs should be spread fairly and equitably across all of our members, regardless of the level of electricity use. This gives all our members an equal share in ANEC’s operation.

With the proposed rate adjustment, a residential bill with electricity use during the non-summer months could see a decrease in monthly costs, but during the summer months would see an increase depending on a member’s energy use.

For example, a residential member using 1,500 kilowatt hours of electricity in the four summer months would see an increase of about $14 a month for that use with the new rate, but that member would see a decrease of just over $1 a month in the eight non-summer months. 

An additional rider will temporarily be included on electric service bills from October through December, but will be discontinued on Jan. 1, 2019.

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