Citing inflationary pressures, A&N to file General Rate Case with the SCC

In response to continued inflationary pressures on material and labor, A&N Electric Cooperative will file a general rate case with the Virginia State Corporation Commission in the coming months.

If approved by the commission, the cooperative’s overall revenue will increase by no more than 9%. Increases to individual rate classes will vary based on each class’ cost of service. The cooperative’s general rate case is based on 2023 revenues and expenses.

The proposed increase to electric rates will allow A&N to continue to recover the cost of operating and maintaining the cooperative’s distribution system, which delivers reliable and safe electricity to your home and community.

As part of its general rate case, A&N will also request approval to implement demand charges as a separate line item for several rate classes. Demand is the measure of how much total electricity a co-op member is using at any given time. The cooperative invests in the electrical system to ensure there is enough capacity to meet the member’s highest projected demand. The separated demand charge would allow the cooperative to more appropriately recover its investment in serving each individual member and align costs with cost-causation.

The impact of the general rate case on individual member bills will vary based on the rate schedule under which an individual member takes service, and the amount of electricity used.

With the proposed rate increase, A&N anticipates that it would be several years before another increase is needed. In January 2024, the cooperative implemented a revenue-neutral rate adjustment to more equitably balance residential and commercial rates. However, this adjustment did not affect overall revenue. The cooperative’s last general rate case was filed in 2018, in which the Commission approved an increase in overall revenue by approximately 5.5%.

A&N’s rates currently produce the second lowest residential electric bills for an average customer compared to the other investor-owned utilities and cooperatives in Virginia and the Delmarva region. If the Commission approves the proposed rate increase, the monthly bill for an average A&N residential customer would still be lower than over half of those 16 electric service providers.

The general rate case will also amend the cooperative’s Terms and Conditions of Providing Electric Service.