ANEC files with State Corporation Commission for rate adjustment approval
A&N Electric Cooperative (ANEC) has filed an application with the State Corporation Commission (SCC) to adjust its rate structure and increase rates later this year.
If approved by the commission, members would see an increase in their monthly access charge and the addition of seasonal rates.
“As a non-profit electric cooperative, ANEC is committed to providing reliable service at an affordable cost. Through careful review and consideration, we have determine that there is a need to adjust our rates,” said Butch Williamson, president and CEO of ANEC. “We must make sure we keep ANEC financially healthy and be able to recover the rising costs of delivering electricity.”
As a member of ANEC, you make an investment in the Co-op each month when you pay your bill. That investment benefits you and the community as a whole immediately and in the future.
The access charge is a monthly investment that helps ANEC cover the expenses of operating and maintaining the electric distribution system. Staying ahead of cybersecurity threats and maintaining electrical distribution equipment and substations take careful planning and require substantial resources. The access charge keeps that equipment up to date and operating properly. It also ensures staff is trained to respond to issues and keep electricity flowing safely to your home or business.
Regardless of how much electricity a particular family uses, the cost of delivering power to that house is the same. As a not-for-profit electric distribution cooperative, we believe the operational costs should be spread fairly and equitably across all of our members, regardless of the level of electricity use. This gives all our members an equal share in ANEC’s operation.
ANEC has proposed a slight increase in winter rates but has also proposed higher seasonal rates for summer (June through September) to better align our power-supply cost. The summer season brings the highest costs for purchasing power due to our area’s increased demand during that time.
A typical residential member using 1,000 killowatt-hours (kWh) per month will see an increase of about $3.61 per month in the winter (October-May) and $13.94 per month in the summer (June-September) under the new proposed rate structure. The overall impact will be about a 5% increase for a calendar year.
“Our proposed adjustments to our current rates will allow ANEC to continue to deliver safe, reliable and affordable energy to the homes and businesses we serve,” Williamson said. “We realize every dollar matters to our members on the Eastern Shore and we’re always working to reduce expenses. We will continue to use technology and provide information that will help serve our members better and control costs.”
The SCC must approve any changes to ANEC’s rates. SCC staff and commissioners will thoroughly review and evaluate ANEC’s rate application. Any proposed changes will not take effect until October.
ANEC will provide additional details about the planned changes and will continue to inform members throughout the SCC’s review schedule by notifications in Cooperative Living magazine, community meetings and here on our website.