Rates

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At Raccoon Valley Electric Cooperative (RVEC), our goal is simple: to provide reliable electric service at fair and reasonable prices. As a not-for-profit, member-owned cooperative, we set rates that reflect the true cost of generating, purchasing, and delivering electricity to your home or business.

Your rates help ensure:

Reliable, high-quality electric service
Ongoing maintenance and upgrades to the electric system
Long-term financial stability of the cooperative

Understanding Your Electric Bill

Your electric bill is made up of several key components:

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Power Cost Adjustment (PCA)

The Power Cost Adjustment reflects changes in the cost RVEC pays for purchasing and delivering wholesale power. This charge may increase or decrease based on market conditions and energy supply costs.

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Frequently Asked Questions

RVEC’s member-elected Board of Directors, along with executive staff, regularly reviews the cooperative’s financial health. Rate changes are considered based on a class cost-of-service study.

The Board follows these guiding principles:

Rates must generate enough revenue to operate the cooperative and maintain appropriate margins.
Costs and margins should be shared fairly across all member classes.
Rates should reflect the actual cost of serving each class of members.

Rate design is the process of balancing the cooperative’s revenue needs while minimizing the overall impact on members.

As a not-for-profit cooperative, RVEC must recover the cost of doing business and maintain sufficient margins to reinvest in the electric system. This process includes:

Evaluating the cost to provide service
Determining the revenue needed to cover those costs
Designing rates to collect that revenue fairly

This work is supported by a cost-of-service study, typically completed every 3–5 years by an independent firm.

The Facility Charge supports the fixed costs required to provide safe, reliable electric service, including:

Substations, poles, wires, transformers, and distribution equipment
Trucks, tools, and equipment needed to build and maintain the system
Facilities, technology, and office operations
Wages for the employees who design, build, maintain, and restore service
Vegetation management and system inspections
Insurance, property taxes, and interest on long-term debt
Investments in technology and reliability, such as AMI meters, outage management systems, and renewable energy

Because all members benefit from reliable service, this charge ensures everyone pays their share of these fixed costs—regardless of how much electricity they use.

Every electric utility is different. RVEC serves a largely rural area with fewer than two members per mile of electric line. In contrast, other electric utilities and municipal utilities serve more than 30 customers per mile.

Fewer members sharing the cost of maintaining miles of infrastructure results in higher fixed costs per member. Despite these challenges, RVEC remains committed to providing reliable service across our entire service territory.

RVEC offers several tools and programs to help members manage energy use and costs, including:

Energy audits and usage analysis
Budget billing
SmartHub access to monitor daily energy use

Understanding how and when you use electricity is the first step. Visit SmartHub to track your usage and explore our Energy Saving Resources for tips and tools to reduce consumption.

Rate Information

Understanding Your Electric Bill

Power Cost Adjustment (PCA)

Frequently Asked Questions

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Contact Info

About Us

Understanding Your Electric Bill

Facility Charge

Energy Charge

Demand Charge

Power Cost Adjustment (PCA)

Frequently Asked Questions

Who decides when a rate change happens and what it will be?

What is rate design?

What is a class cost-of-service study?

What rate-making principles are used?

How often could I be moved between rates?

What is demand?

What does the monthly Facility Charge cover?

Why is RVEC’s Facility Charge higher than some other utilities?

How can I lower my electric bill?

Quick Links

Contact Info

About Us