Bill reduction in 2021 for REC customers
Rappahannock Electric Cooperative (REC) has announced a net decrease to REC member-owners’ electric bills. This reduction is the result of a decrease in the Power Cost Adjustment (PCA) for 2021, which is being partially offset by a modest rate increase to distribution costs.
A typical residential member-owner using 1,000 kilowatt hours (kWh) per month will see a bill reduction of nearly $6 per month beginning in January. The bill decreases are a result of REC passing along cost reductions from its wholesale power provider, Old Dominion Electric Cooperative (ODEC).
“Ultimately, the combination of ODEC’s long-term power contracts and new investment in power generation, including a growing mix of renewable sources, will reflect as a reduction to the PCA,” said Matt Faulconer, REC’s manager of external affairs.
In addition to the significant reduction in the PCA, the rates for delivering electricity to a member’s home or business are rising by five percent. REC’s Board of Directors approved the five percent increase to help pay for efforts to increase reliability and resiliency.
Together, the two changes for a member using 1,000 kWh of electricity is a bill reduction of $5.78. This means that members will save five percent on their electricity costs in 2021.