On May 1, 2026, members of A&N Electric Cooperative will see an increase in the Power Cost Adjustment portion of their monthly bills. This is a direct pass-through cost from the cooperative’s not-for-profit wholesale power provider, Old Dominion Electric Cooperative (ODEC).
The Power Cost Adjustment, which was a credit of $0.00300 per kWh, will become a charge of $0.00693 per kWh. For a residential member who uses 1,000 kWh of electricity, the increase will be about 7.2% compared to the most recent cost of electricity.
A&N Electric Cooperative recognizes that members rely on the cooperative every day for the energy they need and is committed to helping them understand what goes into their bill, why costs are increasing, and what both ODEC and A&N are doing to help manage expenses.
As an electric cooperative connected to the communities it serves, A&N understands that many individuals and families are facing challenging economic conditions. While rising electric bills are never desirable, the cooperative acknowledges the impact on household budgets and remains committed to delivering reliable power while managing costs carefully and transparently.
As a member of ODEC, A&N and its membership benefit from owned generation resources, robust hedging, and cost-mitigation strategies that reduce risk and exposure to extreme power market volatility.
The cooperative continues to focus on managing controllable costs before passing increases on to members and will maintain its collaboration with ODEC to improve efficiency and expand energy supply.
WHY COSTS ARE GOING UP
This increase is driven by several factors, including weather conditions and state policy changes.
It incorporates projected compliance costs associated with Virginia’s anticipated reentry into the Regional Greenhouse Gas Initiative (RGGI), a multistate program requiring power generators to purchase carbon allowances. These costs are mandated under state law and are passed through without markup.
In addition to policy-related factors, the adjustment reflects sustained wholesale power cost increases experienced during the winter and is intended to stabilize power cost recovery moving forward.
During January and February 2026, extreme winter weather and prolonged cold temperatures led to increased natural gas prices and significant power market volatility, driving wholesale power costs higher. For context, a combined-cycle generation facility such as the one owned by ODEC in Maryland can consume approximately 180,000 dekatherms of natural gas per day. Prior to the extreme cold, natural gas prices averaged $4 to $5 per dekatherm; during the peak of the event, prices rose to as high as $135 per dekatherm.
Although A&N Electric Cooperative, through ODEC, owns and operates generation resources that reduce reliance on market purchases, no utility is fully insulated during extended periods of regional fuel price spikes. A portion of power must still be procured at market rates, which increased sharply during the coldest periods.
Extended cold weather also drives higher electricity usage, as heating systems run longer and heat pumps rely more heavily on backup electric heat. The combination of increased consumption and elevated wholesale prices has resulted in the need for a midyear adjustment to recover power costs.
Importantly, ODEC’s generation fleet helped ensure uninterrupted service throughout Winter Storm Fern. In addition, ODEC’s hedging strategies and owned generation resources significantly reduced winter market exposure, helping to limit the overall impact on members.
CO-OP RESOURCES TO ASSIST
A&N Electric Cooperative offers a range of tools to help members manage their energy use and control costs. Through the SmartHub app, members can access detailed insights into their electricity consumption, including appliance-level usage, while the My Co-op Marketplace provides discounts on energy-efficient products. Additional information on these resources is available at anec.com.
Members with questions about their electric bills are encouraged to contact the cooperative directly. Flexible payment options are available, along with the Members Helping Members assistance program for those experiencing financial hardship.
Q&A
Q: What is the Power Cost Adjustment?
A: The Power Cost Adjustment (PCA) reflects the cooperative's current wholesale power costs, which includes the cost of generating electricity to our members. This is a State Corporation Commission-approved adjustment and is a direct passthrough of actual costs.
Q: Why is the Power Cost Adjustment increasing?
A: The PCA increase is mainly due to the prolonged cold during January and February of 2026. The extreme temperatures increased demand, leading to higher natural gas and wholesale power costs. The PCA increase also accounts for Virginia's reentry into the Regional Greenhouse Gas Initiative (RGGI), a state policy that requires power generators to purchase carbon allowances.
Q: How much is the Power Cost Adjustment?
A: The PCA is now $0.00693 per kWh. For a residential member who uses 1,000 kWh of electricity, the increase will be about 7.2% compared to the most recent cost of electricity.
Q: What resources are there if I need assistance with my electric bill?
A: Co-op members who need assistance with their bill are able to apply for Members Helping Members or sign up for Budget Billing. Additionally, residential members can receive a free Home Energy Assessment to pinpoint opportunities to lower energy consumption within their home. Please call 757-787-9750 to speak with an agent about these programs.