CEO Message

REC filed an application with the State Corporation Commission (SCC) to adjust its rates effective in 2018.

  • The typical residential member using 1,000 kilowatt hours (kWh) per month will see an increase of approximately $9.60 per month. Even then, the total bill will be $3.16 less than at the end of 2015.

REC is always working to reduce expenses. A few examples include:

  • Using new technology and automation to improve the efficiency of operations, which enables us to better serve members and helps control costs.
  • A combination of lower wholesale power costs and efforts to manage peak electric loads have reduced the overall cost of electricity. These changes have been reflected on all members’ bills through the power cost adjustment. As a result, typical residential members pay $14 less today for electricity than they did in December 2015.

One of the biggest steps taken to help manage rising costs occurred in 2010, when REC began serving 50,000 members from Allegheny Power. This step:

  • Increased REC’s membership by 50 percent, the equivalent of at least twenty years of normal growth.
  • Allowed for a much larger customer base to help pay for fixed operating costs such as computer systems, 24/7 dispatchers, back-office administration, and more.
  • Allowed REC to shift workers and equipment from region to region as needed during storms and to better manage routine work.

REC has maximized efficiencies to benefit all members, and now needs to adjust rates to ensure that costs are fully, and more fairly, recovered from those who create the expense.

The SCC must approve any changes to REC’s rates. SCC staff and commissioners will thoroughly review and evaluate REC’s rate application. Any proposed changes are not expected to take effect for nearly 10 months, or early in 2018.