Shenandoah Valley Electric Cooperative buys a majority of its power requirements from Old Dominion Electric Co-op (ODEC). This generation and transmission Co-op is owned by 11 distribution co-ops in Virginia, Maryland and Delaware. ODEC owns approximately half of its power supply needs, with a coal-fired generation unit in Halifax County and 11% of North Anna Nuclear plant. The other half is bought from other suppliers through contracts.
ODEC's rates are regulated by the Federal Energy Regulatory Commission (FERC). SVEC is regulated by the State Corporation Commission (SCC). To protect consumers the SCC has established a base cost of energy and allows fluctuations in that cost of energy to be passed on through a fuel charge. To protect consumers even more, the fuel charge above, or below, the base charge is averaged over a 3 to 6 month period to prevent huge fluctuations. Up until the spring of 2001, this charge to you from SVEC had been very small, either positively and negatively.
In 2001 the fuel charge increased to historically high levels. Up until a few years ago, all contract purchases for ODEC were made under Federally regulated cost of service rates. Since then, energy purchased by ODEC has transitioned from the regulated cost basis to deregulated market based purchases. This meant that purchases are determined by whatever the market will bear, not by a regulator. The energy crisis in California is the prime example of what the market will bear.
The chart provided here indicates SVEC's per kWh fuel charge for the past 12 months and the average fuel charge over that period of time.
Previous 12 Months' Fuel Factor and Average Fuel Factor
|Month||Legacy Area||Acquired Area|
||$.03133 per kWh
||$.03199 per kWh
|January 2012||$.03250 per kWh||$.03310 per kWh|
|December 2011||$.02908 per kWh||$.02908 per kWh|
|November 2011||$.02719 per kWh||$.02675 per kWh|
|October 2011||$.02686 per kWh||$.02641 per kWh|
||$.02839 per kWh||$.02774 per kWh|
||$.02895 per kWh||$.02954 per kWh|
|July 2011||$.02538 per kWh||$.02675 per kWh|
|June 2011||$.02636 per kWh|
|May 2011||$.02432 per kWh|
|April 2011||$.02473 per kWh|
|March 2011||$.02603 per kWh|
Average Fuel Factor for last 12 months
|$.02759 per kWh||$.02892 per kWh|