NORTHAMPTON COUNTY, Va. — Members of A&N Electric Cooperative will see higher monthly electric bills beginning May 1, following a shift in the utility’s Power Cost Adjustment driven by rising wholesale energy expenses.
The adjustment, which reflects the cost of electricity purchased through Old Dominion Electric Cooperative, will move from a credit of $0.00300 per kilowatt-hour to a charge of $0.00693 per kilowatt-hour.
For a typical residential customer using 1,000 kilowatt-hours per month, that change translates to an increase of about 7.2 percent compared to recent bills.
Cooperative officials emphasized that the Power Cost Adjustment is a direct pass-through of wholesale costs and does not include any markup by A&N Electric.
What’s Driving the Increase
The higher charge is being attributed to a combination of factors, including elevated wholesale power costs during the winter months and anticipated compliance expenses tied to Virginia’s expected reentry into the Regional Greenhouse Gas Initiative.
The RGGI program requires power generators to purchase carbon allowances for emissions, costs that are ultimately passed through to utilities and their customers. As those compliance costs rise, they can have a direct impact on retail electric rates.
A Common Utility Mechanism
Power Cost Adjustments are a standard feature among electric cooperatives and utilities, designed to reflect fluctuations in fuel and wholesale energy prices without altering base rates. When wholesale costs fall, customers may see credits; when they rise, surcharges are applied.
A&N Electric serves much of Virginia’s Eastern Shore, where seasonal demand swings and regional power market conditions can influence pricing. Officials said the adjustment ensures that the cooperative recovers actual power supply costs while maintaining stable base rates.
Customers are encouraged to monitor their energy usage and consider efficiency measures as higher summer demand approaches.
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