By Heather Michon
Correspondent
Central Virginia Electric Cooperative members will see higher electric bills beginning Jan. 1 as the cooperative increases its Power Cost Adjustment charge by 7.7 percent.
The increase will appear on the Power Cost Adjustment (PCA) line of customers’ bills and will add about $15.75 per month for a typical household using 1,200 kilowatt-hours of electricity, according to CVEC.
CVEC serves about 9,800 residential and business customers in Fluvanna County.
Unlike base-rate increases approved by the State Corporation Commission, the PCA reflects the cooperative’s actual cost of purchasing electricity in the wholesale market.
CVEC said the charge passes those costs directly to member-owners, dollar-for-dollar, with no markup.
The cooperative cited rising wholesale power prices as the primary driver of the increase. CVEC purchases electricity from multiple suppliers through PJM Interconnection, the regional grid operator that manages transmission and balances supply and demand across much of the Mid-Atlantic.
The explosion of data centers across Virginia has increased energy demand across the region, while little new generation has been added. This has increased transmission and capacity costs.
PJM’s capacity charges, the costs utilities pay to ensure power is available during peak demand, surged by as much as 1,500 percent in CVEC’s local PJM region last year, the cooperative said.
CVEC’s PCA increase comes amid similar adjustments by other cooperatives in Virginia. For example, Northern Virginia Electric Cooperative shifted its PCA from a credit to a charge on July 1, 2025, adding about $10 per month for a typical household, and Rappahannock Electric Cooperative updated its PCA factor, effective June 1, to reflect higher wholesale costs.
CVEC said it is taking steps to limit the impact of rising market prices, including adding local solar generation, installing battery storage, and developing voluntary load-management programs to reduce peak demand. The cooperative is also advocating for more affordable pricing at the state and regional levels.
CVEC emphasized that it is a not-for-profit, member-owned utility and remains focused on delivering reliable, affordable power.
Additional information and energy-saving tips will be included as a bill insert for customers later this year.
