A&N Electric Cooperative to implement revenue-neutral rate adjustment

Pursuant to a Virginia Code provision that permits the Cooperative to make certain rate adjustments without Commission approval, A&N Electric Cooperative will be implementing revenue-neutral rate adjustments that will go into effect on January 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 adjustment will increase the access charge on the majority of the Cooperative’s rate classes, while decreasing the variable energy delivery charge. The Cooperative’s rate schedules containing the revenue-neutral rate adjustments were filed 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 fixed 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 a co-op member’s location. The utility incurs these expenses regardless of how much energy a co-op member consumes. These expenses may include customer account expenses such 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 adjustment 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 rate adjustment.

A full list of the rate classes included in the revenue-neutral rate adjustment and additional 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, or initiate a Webchat.