Adjusted Rates Take Effect This Summer

SVEC and its wholesale energy provider will introduce rate adjustments effective June 1. The cumulative effect on residential members who use at least 1,000 kWh will be about an $11.83 increase in bills this summer.

The changes are twofold. At the wholesale level, Old Dominion Electric Cooperative, which generates and transmits electricity for SVEC, is increasing its power rate because of higher electricity usage and colder temperatures last winter that affected the price of natural gas.

To offset these costs incurred from ODEC, SVEC must alter a portion of its rates, called the Power Cost Adjustment, or billing factor. This cost is a pass-through cost that matches dollar for dollar what the co-op pays Old Dominion. The resulting adjustment on this portion of the bill equates to an increase of $6.54 per 1,000 kWh for residential members beginning June 1.

At the same time, at the distribution level, SVEC’s existing summer block rates will also take effect June 1. These rates, which increase for members if they use over 800 kWh from June through September, will result in a seasonal increase of $5.29 per 1,000 kWh for residential members. These summer rates have been in place at SVEC since June 2022, and are designed to encourage energy conservation in the hottest time of the year.

As cooperatives, SVEC and ODEC are not-for-profit utilities. Any excess revenues are returned to members as capital credits. In June, SVEC is returning $4.4 million to members who received service in 2005 and/or 2024.

Watch the video below for a detailed explanation of rates. For ways to save on your bill, visit the energy efficiency tips page of our website.