Effective October 1, 2023, Central Virginia Electric Cooperative (CVEC) members will see a rate increase on their bills to help recover the rising costs associated with providing electric service. The cooperative’s Board of Directors approved an increase that will equate to 1.6% of total revenue from rates or 5% of non-power supply costs, which increases average residential bills by approximately $3.39 per month. CVEC has endeavored to manage costs within the revenue from its rates and is 1 of 2 cooperatives in Virginia that has not implemented a general rate increase since 2018.
CVEC is committed to delivering safe and reliable electric service while, at the same time, managing costs and providing high-quality service for its members. Programs to improve reliability, expand member services, and offer a community solar program have continued and the cooperative has been successful in limiting the impact of rising costs to members over the past five years. However, the accumulated inflation has increased costs to the point that the present retail rates do not recover adequate revenue to offset all costs for distribution services. To ensure CVEC meets the financial goals set in their equity management plan, a rate increase was deemed necessary.
Gary Wood, CVEC president and CEO states, “CVEC is a not-for-profit, member-owned cooperative that shares the cost of buying and providing power with all member-owners. When the prices increased all around us, CVEC was able to hold steady and minimize costs without reducing its level of service to members. The Board of Directors and management at CVEC understand the hardship that any increase can pose to households and didn’t make the decision lightly. Our responsibility is to adhere to the financial goals for the cooperative and the increase in non-power supply costs is necessary at this time.”
Members will be notified via several methods including bill inserts, email, newsletter, and social media. Information about the rate increase, frequently asked questions, and ways to save money with energy efficiency and billing options can be found on CVEC’s website. For answers to questions about the rate increase or any services provided by CVEC, the member services team is available by phone at (800) 367-2832 and via email.