February Electric Bill Reflects “Rate Decrease”

While virtually all aspects of today’s cost of living continues to rise, RECC members have enjoyed one of the longest periods of rate stability in recent history. In fact, all RECC electric rates are now lower than they were in 2009!

In 2016, the board approved a new 10.5-year Power Supply Contract with NextEra Energy Power Marketing, LLC. This long-term contract significantly lowered the cooperative’s wholesale power costs and neutralized our exposure to the electricity markets.

In 2018, the first year of our new wholesale power contract, the Power Cost Adjustment (PCA) went from a “charge” of $0.0085 per kWh to a “decrease” of $0.006 per kWh. When compared to 2017, RECC Members saved $1,616,128 in lower electric bills.  The PCA reduction of $0.006 per kWh will continue for all electric rates in 2019!

On Dec. 11, 2018,  the board extended our Power Supply Contract with NextEra Energy through 2033. The fixed rate protects our members from an unstable energy market, which includes fluctuating natural gas prices and environmental uncertainties.

In addition to the PCA reductions, all members on Rates 1, 5, 25 and 27 will see their Facility Charge reduced by $6 per month ($72 per year). Most of our members are served by the Residential/Farm Rate 1.

Residential/Farm Rate 1 example: Members, who use 1,000 kWhs per month, will save $72 from the $0.006 per kWh PCA reduction and $72 from the Facility Charge decrease. Together, the savings will total $144 annually. Members who use 500 kWhs per month will save $108 annually.

Once again, all our members will realize an immediate benefit. Individuals will see varying reductions in their electric bill, depending on their rate schedule, monthly energy use and in some cases their usage patterns, such as peak demands.

“Even with the recent rate reductions, we know that members are concerned with more than just price,” said President/CEO David Stuva. “Member satisfaction is the right combination of price, quality of service, reliability and commitment to the communities we serve.”

Rate 1 decrease continues a decade of stability

There are over 4,200 RECC members on Rate 1, which is officially described as the Residential and Farm Service rate. The current Rate 1 schedule was established back in 2009, with a $35 Facility Charge and a three-tiered rate that declined as electrical use increased. In the last 10 years, only minor changes were made: including a slight increase in the over 3,000 kWh block and Power Cost Adjustments (PCA) ranging from $0.0030 to $0.0085. These PCAs were applied to each kWh to help the cooperative compensate for escalating power prices and increases in transmission charges.

PCAs are not always bad. They can be used to provide credits to members when wholesale power costs are less than expected. That’s what happened in January 2018 when RECC changed its wholesale power provider to NextEra Energy. The $0.0085 PCA was removed and replaced with a PCA credit of $0.006. Those changes amounted to an approximate penny and a half per kWh reduction and is illustrated in the difference between the 2017 and 2018 columns below.

After a successful first year of our new power contract, the board determined that additional reductions could be made. On Jan. 1, 2019, the Rate 1 Facility Charge was reduced by $6, while continuing the $0.006 PCA credit. The chart below shows that all 2019 totals are $6 less than 2018. The Facility Charge decrease and PCA credit improved a rate that has been stable for the last decade.


10 – Year Comparisons for Rate 1
Monthly Use 2009 2011 2017 2018 2019
500 kWh $97.00 $100.10 $102.86 $95.60 $89.60
1,000 kWh $159.00 $162.50 $170.70 $156.20 $150.20
3,000 kWh $395.00 $404.00 $420.50 $377.00 $371.00