Valley REC

Frequently Asked Questions (FAQs)

Effective with bills rendered on or after February 1, 2012, Valley REC’s residential general service rate will increase from $0.0890 to $0.0955 per kilowatt-hour (kWh).

Does this rate increase have anything to do with rate cap removal?

Electric co-ops have a board of directors elected from the membership that establishes rates. Because we are not-for-profit and self-regulating, we have not had to put rate caps in place. Therefore, our consumers are not be affected by the rate cap removal. By the way, even with this increase, Valley’s rates are still among the lowest in Pennsylvania.

Fairly strong growth in kilowatt-hour sales from 1992 through 2005 kept up with inflation and provided the additional revenue the co-op needed to cover rising distribution costs. However, our growth has been fairly stagnant since 2005. At the same time, our costs to operate, maintain and upgrade our electric distribution system have increased significantly in the past few years – up nearly 19 percent since 2005. Thus, the co-op board of directors determined it was necessary to implement an increase.

How does the new rate break down on my bill?

The new rate will be effective on bills rendered on or after February 1, 2012. Comprising the general service rate of $0.0955 per kWh are the generation/transmission rate, which will be $0.0680 per kWh, and the distribution rate, which will be $0.0275 per kWh. The basic monthly charge remains unchanged.

What do I get for the basic monthly charge?

The basic monthly charge pays for the cost of providing reliable electric service at your location. This includes maintaining distribution lines and substations, clearing rights-of-way and repairing normal wear and tear on poles and equipment. In addition, the expense of billing consumers and maintaining records, like our capital credits accounts, is divided equally among our membership through the basic monthly charge. This means that, regardless of how many kilowatt-hours are used, each member pays a fair share of the cost of having dependable service ready to use 24 hours a day.

What is Valley REC doing to hold down costs?

We’re always looking for ways to manage costs, which may include volume purchasing, energy efficiency programs, and the implementation of new technologies. (One recent example: We’ve streamlined our billing process to cut down on paper, postage and processing time.) We also remain committed to providing reliable service to our members. Doing so requires that system maintenance programs, such as right-of-way clearing and pole inspection, be continued and investments be made to train our employees, replace aging equipment and rebuild and upgrade our electric distribution system. By the way, did you know that we employ roughly the same number of people as we did 70 years ago? Yet the number of consumers we serve has increased by nearly 20,000 over that same period!

How do Valley REC’s prices compare with other utilities?

Valley’s rates typically fall in the mid-range when compared to most electric cooperatives serving Pennsylvania residents. They are also very competitive when compared to private utilities, although they may not be the lowest due to differences in consumer and revenue density. Valley serves an average of seven consumers per mile of line (providing a little over $10,500 in annual revenue per mile of line), while private power companies average 35 customers per mile (acquiring $62,665 annually).

What are some ways I can manage my bill?

Valley REC offers a number of ways to help you manage your power bill. Some of those services include automatic payment options, levelized billing, energy audits and energy efficiency programs. For more information on improving the energy efficiency of your home or business, click the “Save Energy” tab at the top of the page or the “Together We Save” banner at the bottom. Check out the “Programs and Services” link as well. You can also contact our member services department toll-free at 800/432-0680.

What is the co-op doing to promote renewable energy sources?

Ensuring your future electric needs and protecting our precious natural resources are two things we take very seriously.

• We are proud to be part owners of the William F. Matson Generating Station at Lake Raystown, the first hydroelectric project in Pa. to be certified by the Low Impact Hydropower Institute, a non-profit organization that helps ensure environmentally responsible hydro power production.
• We have supported 18 renewable projects so far. They include nine windmill projects, eight large solar projects and one methane digester.
• In an effort to promote energy conservation, we offer free energy audits and low-interest loans for energy conservation projects.
• Valley is a member of the National Rural Electric Cooperative Association (NRECA), which participates in the Ag Energy Working Group, a coalition of 400 organizations focused on generating 25 percent of our nation’s energy from renewable, homegrown resources by 2025. NRECA also works to develop renewable energy partnerships with the federal government.