PERRYVILLE, Mo. – Citizens Electric Corporation will be implementing a Power Purchase Cost Adjustment of $0.01394/kWh for November and December usage. For the average residential member using 1,000 kWh per month, this results in an additional charge of $13.94 for each of the two months.
This is the first change in Citizens Electric rates since 2015. Wabash Valley Power Alliance, Citizens Electric’s power supplier, continues to forecast an upward trend in their power supply rates over the next few years. As many members struggle to keep up with inflation, energy inefficient housing, and other financial challenges, please know that CEC is focused on providing reliable and affordable electricity. As a not-for-profit cooperative, Citizens Electric is continually seeking ways to control costs. A new rate structure will be considered in 2023 offering members benefits when peak usage is minimized, and peak hours are avoided.
Those who follow Citizens Electric Corporation’s (CEC) publications on a regular basis know that the electric industry is becoming more complex. The days of stable and predictable power supply costs have been replaced by greater volatility and uncertainty. When this trend emerged years ago, CEC created a Purchased Power Cost Adjustment (PPCA) to address unpredicted changes in the cost of wholesale power. Other electric utilities in our area implemented similar mechanisms using names like “Fuel Adjustment Charge” and “Power Rate Adjustment” to reflect costs that can occur unexpectedly during the year.
While the PPCA has been in place for well over a decade, members have only seen it used for a few months in 2008 and the last three months of 2014. Unfortunately, CEC is currently experiencing similar challenges. Currently, power supply represents 80% of CEC’s costs. CEC’s power supplier, Wabash Valley Power Alliance (WVPA), has passed along multiple increases over the last few years and will likely assess another by year end. In 2021 alone, WVPA charged CEC over $3 million of unexpected costs. CEC has absorbed the increases thus far by frugally managing the other 20% of costs controlled directly. CEC staff and the board of directors have fought for our members at WVPA by imploring Wabash Valley to control their costs and ensure more competitive rates in the Perryville & Ste. Genevieve region. While these efforts have delayed the need to raise rates, it has become clear that a portion will need to be passed on to CEC’s members to ensure CEC remains financially stable. Thus, CEC will be implementing a PPCA of $0.01394/kWh for November and December usage. For the average residential member using 1,000 kWh per month, this results in an additional charge of $13.94 for each of the two months.
Let’s all work together to keep more dollars in your pocket by sending fewer dollars out of our community and to our power supplier.
Information on low-income home energy assistance programs is available by calling 1-800-392-8663. Tips for minimizing electric use can be found by visiting cecmo.com/energy-saving-tips.
About Citizens Electric Corporation
Citizens Electric Corporation, established in 1947, is a not-for-profit corporation operating as an electric cooperative located in Perryville, Missouri. Citizens Electric services over 27,500 members in the areas of Perry County, Ste. Genevieve County and portions of Cape Girardeau, Bollinger, Jefferson, and St. Francois County. For more information, visit www.cecmo.com or follow Citizens Electric on Facebook.com/ and YouTube.