NNEC Announces Power Cost Reduction

During a time when prices continue to rise for goods and services across the country, Northern Neck Electric Cooperative is offering rate relief for members. Beginning with their August statements, NNEC members will see a reduction in the Power Cost Adjustment (PCA) portion of their bill. This means members using the industry household average of 1,000 kWh of power will pay $7.13 less each month. Over the course of a year, that would be more than $85 in savings.

The PCA reflects the changes in the cost of producing electric power from our wholesale power suppliers which is largely caused by changes in the cost of fuel for generation of electricity. The decrease is the result of Old Dominion Electric Cooperative (ODEC) — a not-for-profit wholesale electric supplier, and primary provider for NNEC — lowering its wholesale rate on Aug. 1, 2023. The reduction in the wholesale rates reflects an easing of energy prices in the region, which is welcome news for NNEC members after a period of escalating energy costs throughout the Mid-Atlantic and the nation.

In June, NNEC announced that its board of directors, comprised of members, elected to return $800,000 in capital credit retirements to its members in July. As a not-for-profit cooperative, any margins left over at the end of the year after all expenses are paid are set aside in each member’s name to be refunded at a later date as capital credits on their electric bill or mailed to them if the co-op no longer serves them.

“In our cooperative business model, we exist to serve our members affordable and reliable electric service,” said Brad Hicks, president and CEO of NNEC. “We have done as much as we could behind the scenes to create savings for our members. We even tried things that we have never done before.”

More than two years ago, the co-op diversified its energy purchase portfolio in another effort to reduce energy costs for its members. These power purchase programs have reduced the co-op’s cost of energy significantly and resulted in more than $3 in savings per member every month.

“We know that many of our members sit at their dining room table budgeting and paying all their bills. Every dollar saved is a dollar earned. These savings and capital credits add up and will provide real relief to families,” said Hunter Greenlaw, chairman of NNEC’s board of directors and a member of NNEC. “I am proud of the efforts of our executive team and the team at ODEC for delivering on our goal to provide affordable and reliable electric service to our members.”