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Fuel Factor

 

Shenandoah Valley Electric Cooperative buys a majority of its power requirements from Old Dominion Electric Co-op (ODEC). This generation and transmission Co-op is owned by 11 distribution co-ops in Virginia, Maryland and Delaware. ODEC owns approximately half of its power supply needs, with a coal-fired generation unit in Halifax County and 11% of North Anna Nuclear plant. The other half is bought from other suppliers through contracts.

ODEC's rates are regulated by the Federal Energy Regulatory Commission (FERC). SVEC is regulated by the State Corporation Commission (SCC). To protect consumers the SCC has established a base cost of energy and allows fluctuations in that cost of energy to be passed on through a fuel charge. To protect member-owners even more, the fuel charge above, or below, the base charge is averaged over a 3 to 6 month period to prevent huge fluctuations. Up until the spring of 2001, this charge to you from SVEC had been very small, either positively and negatively.

In 2001 the fuel charge increased to historically high levels. Up until a few years ago, all contract purchases for ODEC were made under Federally regulated cost of service rates. Since then, energy purchased by ODEC has transitioned from the regulated cost basis to deregulated market based purchases. This meant that purchases are determined by whatever the market will bear, not by a regulator. The energy crisis in California is the prime example of what the market will bear.

The chart provided here indicates SVEC's per kWh fuel charge for the past 12 months and the average fuel charge over that period of time.
 

Previous 12 Months' Fuel Factor and Average Fuel Factor 

 
Month   Legacy Area   Acquired Area
         
September 2014   $.00719 per kWh   $.00824 per kWh
August 2014   $.00567 per kWh   $.00710 per kWh
July 2014   $.00304 per kWh        $.00476 per kWh
June 2014   $.00181 per kWh   $.00013 per kWh
May 2014   ($.00262) per kWh   ($.00132) per kWh
April 2014   ($.00096) per kWh   ($.00017) per kWh
March 2014   ($.00050) per kWh   $.00021 per kWh
February 2014   $.00392 per kWh   $.00435 per kWh
January 2014   $.00455 per kWh   $.00480 per kWh
December 2013   $.02603 per kWh   $.02641 per kWh
November 2013   $.02303 per kWh   $.02366 per kWh
October 2013   $.02107 per kWh   $.02205 per kWh
         

Average Fuel Factor for last 12 months

  $.00769 per kWh   $.00835 per kWh