Wholesale Power Cost Adjustment
The Wholesale Power Cost Adjustment (WPCA) and the Wholesale Power Cost Adjustment – New Territory (WPCA-NT) change bi-annually to reflect the Cooperative's current wholesale costs of electricity and the fuels used to generate it. This State Corporation Commission approved adjustment is a pass-through of actual costs, plus or minus any over- or under-recovery of generation costs incurred during the previous six months.
WPCA for May 2013 - Oct. 2013: 0.02225
WPCA for Nov. 2012 - April 2013: 0.02349
WPCA for May 2012 - Oct. 2012: 0.02688
WPCA for Nov. 2011 - April 2012: 0.02928
WPCA for May 2011 - Oct. 2011: 0.02867
WPCA for Nov. 2010 - April 2011: 0.02650
WPCA for May 2010 - Oct. 2010: 0.02526
WHOLESALE POWER COST ADJUSTMENT - NEW TERRITORY (WPCA-NT)
On July 1, 2011, REC implemented the first step in a multi-year rate transition plan that the Virginia State Corporation Commission required when it approved the transfer of responsibility for providing electric service from Allegheny Power (AP) to REC. The transition plan is designed to smooth out rate adjustments over several years and protect members formerly served by Allegheny Power from experiencing big jumps in their rates and bills at one time.
The rate-transition plan includes a provision that directly benefits all of REC's residential and business members in the area previously served by Allegheny. The Commission required Allegheny to pay approximately $13.75 million over four years to help reduce future electric bills of their former customers. This money will be returned to REC members in those areas previously served by Allegheny as a Transition Credit on their electric bill. For the year starting July 1, 2011, the credit was $.00585 per kilowatt-hour (kWh), which was $5.85 for every 1,000 kWh used. For the year starting July 1, 2012, the credit will be $.003 per kilowatt-hour (kWh), which is $3 for every 1,000 kWh used.
The Levelized Purchased Power Factor (LPPF) charged to former Allegheny customers expired on June 30, 2011. On July 1, 2011, the LPPF was replaced by the Wholesale Power Cost Adjustment – New Territory (WPCA-NT). The WPCA-NT is a “formulary rate” that the State Corporation Commission approved in May 2010 and is designed to pass-through the variable costs of generating and acquiring wholesale power.
Twice a year, the variables in the formula are updated and the charge recomputed – it may go up or down. The charge reflects actual costs only; it does not include a mark-up or profit margin. Factoring in the transition credit from the money paid by AP, residential members saw a modest impact on their monthly bills starting July 1, 2011. A typical residential member using 1,000 kWh hours per month saw an increase in their bill of $5.33. Large industrial members experienced bill impacts of less than 3 percent.
Review the bill insert explaining WPCA-NT.
WPCA-NT for May 2013 - Oct. 2013: 0.03353
WPCA-NT for Nov. 2012 - April 2013: 0.03477
WPCA-NT for May 2012 - Oct. 2012: 0.03816
WPCA-NT for Nov. 2011 - April 2012: 0.04056
WPCA-NT for July 2011 - Oct. 2011: 0.03995