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Electric rate increase approved

Daily staff report

Some customers of Rappahannock Electric Cooperative can expect to see their electric bills increase starting July 1.

The rate increase was approved by the State Corporation Commission, and will impact those customers formerly served by Allegheny Power and now by REC.

A release from the cooperative states that the increase is part of a gradual transition to match the "new territory" rates with the rates of all REC members.

Charges for a typical residential member using 1,000 kWh per month will increase by 5 percent, adding about $5.40 to the monthly bill, the release states.

"New Territory members have been paying delivery rates that are twenty years old and based on Allegheny Power's costs in the early 1990s," it further states. "The delivery portion of rates covers the costs of building and maintaining the facilities used to deliver electricity, and includes substations, poles, wires, and transformers, as well as administrative costs such as reading meters, preparing and processing bills, and performing customer services like providing energy efficiency advice."

Starting in July, the cooperative will use a "bill and credit" system for its members -- all REC members will be billed using its standard rates, but members in the "new territory" will receive a credit that reduces the total amount billed -- so that members can know what charges to expect when the rate transition is complete in 2017.

For more information, visit myrec.coop.

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