Pursuant to Virginia Code § 56-585.3, A&N Electric Cooperative will be implementing revenue-neutral rate adjustments that will go into effect on Jan. 1, 2024. The revenue-neutral rate adjustments will neither increase nor decrease the Cooperative’s revenues.
Originally announced at the Cooperative’s Annual Meeting in August, the rate adjustments will increase the access charge on the majority of the Cooperative’s rate classes, while decreasing the variable energy delivery charge. Please see anec.com/revenue-neutral-rate-adjustment for details on the changes to the different rate class access charges and variable charges. The Cooperative’s
rate schedules containing the revenue-neutral rate adjustments were led with, and accepted by, the State Corporation Commission in September.
This reallocation of revenue within the proposed rate classes is needed to cover the Cooperative’s standard xed costs, which continue to rise due to the increased cost of materials and other inflationary pressures. Historically, the Cooperative has not been able to recover the fixed costs of plant investment with the fixed monthly access charge alone. The remainder is currently recovered in the variable per kilowatt-hour charge.
All utilities impose a flat monthly basic charge designed to recover certain fixed expenses associated with making utility service available to your location. The utility incurs these expenses regardless of how much energy a co-op member consumes. These expenses may include customer account expenses, such as metering, billing and payment processing, as well as fixed costs associated with an individual service line such as depreciation, maintenance and financing costs.
Reducing the variable rate and shifting that cost to the fixed access charge will more equitably distribute the overall cost of electric distribution service across the Cooperative’s membership.
The proposed rate adjustments will result in either a decrease or an increase to a standard monthly residential bill depending on how much energy is used in a given month. The Cooperative anticipates that more than two-thirds of the membership should see a decrease in their overall monthly bills as a result of the proposed rate adjustments. More information can be found at anec.com under the “Rate Adjustment” tab.
If you have any questions or would like to speak to a member services representative, please call or text 757-787-9750, submit a “Contact Us” form or initiate a webchat.