Manager's Message
POINT OF VIEW: Managing costs for the co-op
From the desk of CEO & General Manager, Eddie Oldham
"...we are doing everything we can to manage costs while continuing to invest in the infrastructure and reliability of our system."
As your electric cooperative, we are committed to providing safe, reliable, and affordable power while keeping you informed about the factors that impact your bill. Beginning Sept. 1, you will notice a Wholesale Power Cost Adjustment (WPCA) on your monthly power bill. I want to take a moment to explain what this is and why it’s necessary.
What is a WPCA?
A Wholesale Power Cost Adjustment, or WPCA, is a billing adjustment that helps us reflect and account for fluctuations in the cost of wholesale power, the electricity generated and purchased to serve your home or business, without permanently changing your electricity rate. It ensures that we can cover the actual cost of power without over- or under-charging our members. It is a direct pass-through strictly to account for the cost of purchasing power. The cooperative does not profit from this adjustment.
Why is it necessary now?
For the last several years, we have been relaying to you to the growing threats on reliable and affordable power generation. Market and policy forces have introduced changes that require utilities to lower the carbon intensity of generating resources, primarily through the retirement of power plants. As a result, earlier this year, we unfortunately had to put in place a rate adjustment to help offset rising costs. Since then, the cost of wholesale power has continued to climb, driven by current market volatility. These increases have placed additional financial pressure on the cooperative, and the WPCA is a necessary step to ensure we can continue to meet our obligations and maintain the quality of service you expect.
Our Commitment to You
We understand that any change to your bill has a direct impact on you and your families. It is always our last resort. Please know that we are doing everything we can to manage costs while continuing to invest in the infrastructure and reliability of our system. The WPCA will allow us to respond to the rapidly changing market conditions in a fair and transparent way, ensuring the financial health of the cooperative.
Thank you for your continued trust and support. We will be sending out more information to you over the coming weeks, as well as in the upcoming September newsletter. As always, we are here to answer your questions, and we are working hard to keep electricity affordable and provide the service you deserve.
Until next time,
