Central Virginia Electric Cooperative Announces Rate Increase Effective June 12

June 10, 2024

Arrington, VA – Starting June 12, 2024, members of Central Virginia Electric Cooperative (CVEC) will experience a rate increase on their electric bills, which will affect residents who live in Orange and Louisa Counties, among several others that they serve. This adjustment, filed as a streamlined rate case with the Virginia State Corporation Commission on May 13, represents a 4.54% increase in base electric rates. For the average residential customer, this will translate to an approximate rise of $8.48 per month.

CVEC has strived to maintain costs within the revenue generated from current rates. However, significant financial pressures have necessitated this rate adjustment. The cooperative has been dealing with surging power costs and necessary upgrades to transmission lines, which are the primary drivers of this increase.

In 2022, a spike in power costs added an unexpected $12 million burden, which was not immediately recouped through member rates. CVEC is gradually recovering these costs via its Power Cost Adjustment (PCA). Once these costs are fully recovered, the PCA will be adjusted to a lower amount, and members will be informed accordingly.

Additionally, CVEC is undertaking substantial infrastructure projects, including rebuilding multiple substations and upgrading transmission lines to handle higher voltages from Dominion Energy and Appalachian Power lines. Over recent years, CVEC has also completed numerous internal system upgrades, amounting to an investment exceeding $25 million. These upgrades, while essential for system reliability, have coincided with a 40% increase in material costs, as well as rising fuel and labor expenses since 2018.

Given these challenges, the CVEC Board of Directors determined that filing for a rate increase was necessary. CVEC President and CEO Gary Wood expressed the cooperative’s commitment to managing costs while delivering reliable service. “The CVEC management and Board of Directors understand the impact of higher rates on our members’ households. We have successfully minimized rate increases from 2018 until last fall. Moving forward, we will work to mitigate increasing power costs in the future by using technology to improve system performance and increase reliability, optimizing our workflows to minimize the need for additional personnel, and reducing load at peak times,” said Wood.

CVEC remains dedicated to providing safe, reliable, and high-quality electric service. Members will be notified of the rate increase through bill messages, emails, and the member newsletter. Further information, including tips on energy efficiency and billing options, is available on the CVEC website: www.mycvec.com. For questions regarding the rate increase or other CVEC services, members can contact the member services team at 800-367-2832 or via email at [email protected].

About Central Virginia Electric Cooperative

Central Virginia Electric Cooperative is a member-owned, not-for-profit electric utility serving 39,000 homes, farms, and businesses across 14 rural counties in Virginia. CVEC connects its members and communities through dependable power and broadband services, offering high-speed internet via its subsidiary, Firefly Fiber Broadband. CVEC and its subsidiary are committed to equal opportunity employment and service provision. For more information, visit www.mycvec.com.

Contact:
Melissa Gay, 434-263-7638
[email protected]


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Arrington, VA – Starting June 12, 2024, members of Central Virginia Electric Cooperative (CVEC) will experience a rate increase on their electric bills, which will affect residents who live in Orange and Louisa Counties, among several others that they serve. This adjustment, filed as a streamlined rate case with the Virginia State Corporation Commission on May 13, represents a 4.54% increase in base electric rates. For the average residential customer, this will translate to an approximate rise of $8.48 per month.

CVEC has strived to maintain costs within the revenue generated from current rates. However, significant financial pressures have necessitated this rate adjustment. The cooperative has been dealing with surging power costs and necessary upgrades to transmission lines, which are the primary drivers of this increase.

In 2022, a spike in power costs added an unexpected $12 million burden, which was not immediately recouped through member rates. CVEC is gradually recovering these costs via its Power Cost Adjustment (PCA). Once these costs are fully recovered, the PCA will be adjusted to a lower amount, and members will be informed accordingly.

Additionally, CVEC is undertaking substantial infrastructure projects, including rebuilding multiple substations and upgrading transmission lines to handle higher voltages from Dominion Energy and Appalachian Power lines. Over recent years, CVEC has also completed numerous internal system upgrades, amounting to an investment exceeding $25 million. These upgrades, while essential for system reliability, have coincided with a 40% increase in material costs, as well as rising fuel and labor expenses since 2018.

Given these challenges, the CVEC Board of Directors determined that filing for a rate increase was necessary. CVEC President and CEO Gary Wood expressed the cooperative’s commitment to managing costs while delivering reliable service. “The CVEC management and Board of Directors understand the impact of higher rates on our members’ households. We have successfully minimized rate increases from 2018 until last fall. Moving forward, we will work to mitigate increasing power costs in the future by using technology to improve system performance and increase reliability, optimizing our workflows to minimize the need for additional personnel, and reducing load at peak times,” said Wood.

CVEC remains dedicated to providing safe, reliable, and high-quality electric service. Members will be notified of the rate increase through bill messages, emails, and the member newsletter. Further information, including tips on energy efficiency and billing options, is available on the CVEC website: www.mycvec.com. For questions regarding the rate increase or other CVEC services, members can contact the member services team at 800-367-2832 or via email at [email protected].

About Central Virginia Electric Cooperative

Central Virginia Electric Cooperative is a member-owned, not-for-profit electric utility serving 39,000 homes, farms, and businesses across 14 rural counties in Virginia. CVEC connects its members and communities through dependable power and broadband services, offering high-speed internet via its subsidiary, Firefly Fiber Broadband. CVEC and its subsidiary are committed to equal opportunity employment and service provision. For more information, visit www.mycvec.com.

Contact:
Melissa Gay, 434-263-7638
[email protected]


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