In September 2024, the State Corporation Commission approved an increase for rates and bill charges for REC. Effective Oct. 1, 2024, the average residential member using 1,187 kWh per month will see a monthly bill increase $6.52 per month or about 4%.
After careful consideration, REC’s Board and leadership team determined that this adjustment is necessary to ensure the Cooperative can continue to meet its financial obligations and support essential investments into the reliability of the electric grid.
The following changes will be made to each of REC’s rate schedules
| Class (Rate Schedule) | Revenue Increase/Decrease Amount (in $000s) |
Revenue Increase/Decrease % |
|---|---|---|
| Schedule A-1 Residential and Church Service | $14,611 | 4.75% |
| Schedule A-2 Farm, Civic and Ancillary Residential | $1,433 | 6.48% |
| Schedule A-1 Prepaid Electric Service | $153 | 4.63% |
| Schedule A-1 TOU Time of Use | $19 | 16.83% |
| Schedule B-1 Small General Service <25 kW | $509 | 4.36% |
| Schedule B-3 Small General Service >25 kW | $671 | 2.72% |
| Schedule LP-1 Large Power Service | $1,263 | 1.75% |
| Schedule HD-1 Large Power High Diversity Service | $74 | 2.70% |
| Schedule LP-3 Large Power Substation Direct Service | $145 | 0.65% |
| Schedule OL Outdoor Lighting | $115 | 4.05% |
| Total | $18,993 | 4.00% |
| 4.75% is the class percentage increase based on 2023 revenue. An individual member's increase will vary based on electricity usage and current power costs. | ||
Why are some rate class changes different?
- REC analyzes the cost to serve each rate class (including residential and commercial/industrial rates)
- As a result of differences identified between the rate classes, the proposed increase will ensure fair and equitable pricing across rate classes.
Under the new rates, the access charge* for each member will go up from $14.70 per month to $16.50 per month. While this represents a $1.80 increase, REC continues to have the lowest Access Charge of any electric coop in Virginia.
*The Access Charge is a fixed fee all members pay each month in order to have access to the electric grid. The purpose is to stabilize REC’s revenue from future volatility related to changes in weather and kWh sales.
This reflects a 1% decrease in the Power Cost Adjustment* from Old Dominion Electric Cooperative. This decrease will result in savings of about $1.79 per month for the average residential member.
*The Power Cost Adjustment is an adjustment to an electric bill that accounts for the changes in the cost of generating and delivering electricity.
Balancing Reliability and Rising Costs
Investments Into Reliability
- This year alone, we are projected to upgrade or replace over 6,000 utility poles. But we aren't just replacing them—we're improving them! These new poles are taller, stronger and sturdier, and they are designed to boost capacity and improve reliability.
- We’re also expanding additional infrastructure to meet your needs. By the end of 2024, we will have installed more than 800 overhead transformers and 1,200 padmount transformers, ensuring our system is ready to meet the growing demand for power
- Trees cause 70% of all power outages, so our certified arborists and foresters have been working with property owners to identify and remove hazardous trees. So far this year, we’ve removed over 1,800 high-risk trees and have met with thousands of members to resolve tree-powerline conflicts!
- To prevent vegetation from interfering with power lines, we have over 150 tree trimmers inspecting and pruning overgrowth, clearing 830 miles of right-of-way this year already!
- Beyond these upgrades and maintenance, we’ve invested in broadband partnerships to bring high-speed internet to our members. This has required years of work and make-ready construction to support the fiber network. Bringing broadband to our members will enhance connectivity, support economic development, and bridge the digital divide for unserved and underserved rural communities.
Impact of Inflation
Inflationary pressures have impacted our operating costs, particularly the price of equipment. Since 2019, prices for some critical equipment items have more than doubled. The graphic below demonstrates the substantial price increases we’ve experienced since 2019.
At REC, financial responsibility is a top priority, which is why we want to be transparent about how we put your dollars to use. Here’s a breakdown of how your monthly power bill is spent:
- Cost of Power - 60%
- Operations & Maintenance - 14%
- System Improvements - 17%
- Customer Service & Care - 9%
To learn more about how your money is spent when you pay an REC electric bill, check out the video below!
Costs are rising everywhere, so we’ve designed some tools and resources to help you reduce your energy consumption without sacrificing comfort.
Fill out the SmartHub Home Energy Profile
By filling out the home energy profile in SmartHub, you can track your energy use and receive alerts and emails customized for your home, helping you maximize your savings.
Download the MyREC SmartHub app.
Enroll in the Summer Savings Program
REC offers a summer savings program, giving members a rebate for using less electricity on specific days in the summer. Members who choose to participate receive a bill credit based on how much energy they saved during those times. For every kWh saved, you earn 75 cents.
How to enroll:
- In your MyREC SmartHub Account, click Contact Us.
- Then select Ask a Question.
- Finally, select Summer Savings Plan.
Learn more here.
Follow our Energy Saving Tips
Follow our recommendations to make your home more energy efficient, helping you save energy and money. Click here to visit our page.