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 The days of stable and predictable power supply costs have been replaced by greater volatility and uncertainty.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.