By John Hewa, President & CEO, Rappahannock Electric Cooperative
At Rappahannock Electric Cooperative (REC), we know how important affordable energy is to your household budget, and that’s why we’re working hard every day to keep costs down.
I want to share with you what’s driving today’s energy costs and, more importantly, what your Cooperative is doing to protect you from additional financial strain.
How REC Is Keeping Your Costs Down
It’s important to understand that about 65% of a member’s power bill reflects the pass through of wholesale power costs; REC works diligently to control the remaining 35% of your bill. As a not-for-profit, member-owned Cooperative, our members’ best interests are top of mind for every dollar we spend. Here are just a few ways REC is working to safeguard affordability:
- Strengthening efficiency across the Cooperative
We continually evaluate operations to reduce costs, streamline processes and ensure we are using member dollars wisely. - Investing in grid modernization the right way
New meter technology, installing robust fiber connectivity, improved switching and other automation tools all help reduce outage times and lower our long-term operational costs. - Pursuing smart energy solutions
REC is implementing new technologies that help us monitor the grid in real time, integrate distributed energy resources (like solar and battery storage) and better manage peak demand — our biggest driver of wholesale power costs. - Pursuing grant dollars
REC looks for federal and state grant opportunities to provide funds for grid improvements and new technologies that help us lower costs. For example, REC has applied for a grant to install two 4-megawatt battery storage systems that would enable REC to significantly reduce energy demand at peak hours when power costs the most.
Why Energy Costs Are Increasing
Several factors are influencing the price of electricity nationwide, and particularly here in Virginia. Among the most significant:
- Higher wholesale power costs
The cost of generating and transmitting electricity has risen sharply, driven by fuel prices, supply constraints and increased demand on the grid, especially during extreme temperatures. When these charges change, it reflects the fluctuating costs of wholesale power, as they are passed directly through to members without markup. - The need for a more resilient grid
Aging infrastructure across the nation requires investment to ensure reliability. Modernization is essential to strengthen the grid, counter cybersecurity threats and address the stress of more volatile weather. - Rapid growth in electricity demand
Electric vehicles, data centers and new businesses are bringing important economic opportunities to Virginia, but they also increase the demand for electricity. Meeting this growing demand for electricity requires investments in generation, transmission and distribution.
Tools to Help Manage Your Bill
These challenges are real. Yet REC remains committed to keeping energy as affordable as possible while maintaining the reliability you depend on. While many cost drivers happen upstream, REC offers tools and programs to help members manage their energy use:
- MyREC SmartHub to track use by the hour.
- High-use alerts to let you know of anything out of the ordinary that could be causing higher than normal energy use (such as a malfunctioning HVAC system).
- Budget billing for predictable monthly payments.
- Summer Savings Plan to help manage future costs of electricity and earn rebates.
- Energy-efficiency programs to help reduce use and improve home performance.
Rising costs are challenging, and I want you to know that REC is working every day to deliver safe, reliable and affordable electricity. We understand the impact every price increase has on your household, and we take that responsibility seriously.
Thank you for placing your trust in us. We will continue to communicate openly, act responsibly and put our members first today, and every day.
