New rates effective June 12
Press Release
Effective June 12, 2024, Central Virginia Electric Cooperative (CVEC) members will see a rate increase on their bills to help recover the rising costs associated with providing electric service. CVEC filed a streamlined rate case with the Virginia State Corporation Commission on May 13 that will equate to 4.54 percent of base electric rates, which increases average residential bills by approximately $8.48 per month.
CVEC CVEC) provides power to homes and businesses in parts of over a dozen counties in central Virginia including Fluvanna County.
CVEC has endeavored to manage costs within the revenue from its rates; however, two major factors have pushed costs up significantly: increased power costs and transmission line upgrades.
Power costs that spiked in 2022 added $12 million in unexpected charges, which were not recovered through member rates power supply that year. CVEC continues to recoup those costs through its Power Cost Adjustment (PCA). Once the unrecovered costs are offset, the PCA will be reduced to a lower amount. We will announce that change when it occurs.
CVEC must rebuild multiple substations and transmission lines to match and accept the higher voltage from transmission upgrades on Dominion Energy and Appalachian Power lines. In addition, CVEC completed several previously planned internal electric system upgrades in recent years. Together, these projects have required investment of more than $25 million in the past few years. CVEC has also experienced a 40 percent increase in material costs and increase in fuel and contract labor costs since 2018. While the upgrades will strengthen the system, the increased debt for these investments will not be fully recovered under present rates.
As a result of these combined increased costs, the CVEC Board of Directors made the difficult decision to file for a streamlined rate case with the Virginia State Corporation Commission. “The CVEC management and Board of Directors understand the impact of higher rates on our members’ households. We have successfully minimized rate increases from 2018 until last fall. Moving forward, we will work to mitigate increasing power costs in the future by using technology to improve system performance and increase reliability, optimizing our workflows to minimize the need for additional personnel, and reducing load at peak times,” says CVEC President and CEO Gary Wood.
Information about the rate increase, and ways to save money with energy efficiency and billing options can be found on CVEC’s website: www.mycvec.com. For answers to questions about the rate increase or any services provided by CVEC, the member services team is available by phone at 800-367-2832 and email information@mycvec.com.
