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REC Reduces Rates $1.6 Million - Rappahannock Electric ...

Prepare Your Business for Winter Weather

Any system failure

could affect your business

in a negative way

for long periods of time.

inter weather can affect your business in many

W ways. Water pipes, process equipment and other

building systems can all fail when the temperature

drops. Any system failure could lead to financial

difficulties and could harm your business in a negative

way for long periods of time. To avoid these potential

interruptions a winter weather preparedness plan

should be implemented.

Use the following tips to implement your

winterization plan:

• If you have open areas/doorways between

warehouses and office spaces, minimize heat

loss from the heated areas. If there are doors,

simply keep them shut (use signs to remind staff).

No doors? Install heat barriers such as plastic

strips between the two areas.

• Similar to your home tune-up, do a walk around

the business and identify drafty areas, doors

and windows that don’t seal properly. Use

weather-stripping and caulking to insure that

all areas of infiltration are sealed. Small cracks

add up to big heating losses.

• Programmable thermostats are relatively inexpensive

and can help optimize your building’s

heating and cooling needs. If programmable

thermostats aren’t an option this winter, make

sure thermostats are turned down nightly and

on weekends. Post signs to remind staff. If your

thermostat is currently located in an area subject

to extreme temperature fluctuations (for example,

a south-facing foyer with lots of windows),

change the location.

• To maximize the effectiveness of baseboard

heaters, ensure they are free from obstructions,

such as bookshelves, boxes and file cabinets, etc.

• In warehouses or offices with high ceilings, a

large amount of heated air accumulates around

the ceiling. Using ceiling fans will push rising

warm air down to the working area.

• Have furnaces cleaned and serviced before cold

weather arrives. Dirty surfaces reduce heat

transfer and increase energy use. Replace air

filters. Clean baseboard-heating systems for

dust build-up.

• Natural light saves money, so open curtains and

blinds during the day. To reduce night heat loss

in winter, have staff close blinds and curtains

when they leave their offices at the end of the day.

• If possible, avoid using exterior doors that exit

directly to the outside. Use doors with enclosed

entry ways/vestibules to keep in the warm air.

Encourage the use of revolving doors, as they

reduce draft. Calibrate any automatic doors to

minimize air loss. Insulate doors where feasible.

Got a Few Minutes?

We Can Help You Save on Energy Costs

Does spending just 5 to 10 minutes to find out how your

organization can lower energy costs, increase efficiency,

and improve its bottom line seem like a good use of your time?

Just click on the Facility Assessment Wizard link, found in the

Tools You Can Use section of the navigation menu of every

Questline newsletter, and start the clock ticking toward improved

energy efficiency and lower energy bills.

We know that every facility is different, and you are not

interested in cookie-cutter efficiency advice. With Questline’s

Facility Assessment Wizard, you can select your specific climate

zone, choose from nearly 200 different business segments, and

answer detailed questions about your energy use practices

and facility operations.

Completing a short, six-step interview will produce an

industry-specific, specialized report, featuring tailored recommendations

to assess your facility’s needs, challenges, and

energy- and money-saving opportunities.

If you are not currently signed up to receive Questline,

visit the Commercial section of the REC Web site at Select the Economic Development tab

at the top of the page and choose Questline under Business

Resources in the left-hand sidebar. Once you are on the

Questline page, simply click the link at the bottom of

the page to sign up for the Questline service. •

Permission to use this article has been granted by

Tech Resources, Inc.

Power Connection is your

free source of information

about energy conservation

and management, energy

services, technology trends,

government and regional

economic development.

For additional information

about this publication, to

suggest a topic for a future

issue, or to update your name

and address, contact REC

at 800-920-WATT (9288) or

P.O. Box 7388

Fredericksburg, VA 22404

Business & Community

Development Newsletter

fall 2009






Business & Community Development Newsletter fall 2009

REC Reduces Rates

$1.6 Million

The rate changes have each customer class

pay only the costs they create and encourage

the efficient use of electricity.

Beginning with the bills issued Nov. 1, the rates charged to

Rappahannock Electric Cooperative’s (REC) commercial

and industrial members were restructured to better reflect the

actual costs of providing service to them. While the changes

affect each user differently, the overall effect is an annual

reduction of $1.6 million. Those businesses that use electricity

most efficiently will benefit more than those whose usage

patterns create additional costs.

The rate changes help accomplish two goals: having each

customer class (residential, commercial, and industrial) pay

only the costs they create and encouraging the efficient use

of electricity. The new rates and additional options REC plans

to offer in the near future will reward those who make the

effort to improve their load factor and reduce demand during

peak times.

This is the first significant rate adjustment by REC since

1992. In that time the average cost of serving commercial

and industrial connections has gone down as compared to the

average cost of serving residential connections. That is why

only the business rates were reduced.

In addition to an overall reduction for businesses, all

rates have been restructured. In the business rates the fixed

monthly charge is higher to reflect the costs of providing

service regardless of the amount of electricity used, and the

per kWh charge is proportionately lower. In all rate classes

the charges for distribution delivery, service and electricity

supply service have been adjusted to reflect actual costs. •

Office closings

D e c e m b e r


Dec. 25, 2009

Jan. 1, 2010

If you experience an outage or

power emergency during this time,

our dispatch department is always

available 24 hours a day to take

your call.

Wholesale Power Cost Adjustment Decreases

Members will pay approximately $5.80 less

for every 1,000 kilowatt-hours used

s a result of declining wholesale power costs, REC will be

A decreasing members’ electric bills. They will pay $5.80 less

beginning with their November electric bills.

The new Wholesale Power Cost Adjustment (WPCA) is

.058¢ less per kilowatt-hour (kWh), lowering a typical monthly

bill with 1,000 kWh usage by $5.80. The WPCA is a charge

passed on to members that primarily covers the costs of the fuels,

such as coal, natural gas and uranium, used to generate power

and electricity purchased from the wholesale market.

In September a lower WPCA reduced members’ electric

bills by approximately $4 for every 1000 kWh used per month.

Combined, the two reductions have lowered electricity costs

by 7 percent since August.

“A decrease in the demand for electricity, as a result of a

slowing economy, has led to a continued drop in both the cost of

generation fuels and electricity purchased,” said Kent D. Farmer,

president and CEO. “Being able to pass these reduced costs on to

our members in the form of a lower electric bill for the last two

months is an exciting opportunity for us.” •

Web Self-Service provides REC members online access to

their REC account. Over 5,600 members have logged

on to Web Self-Service to view their account information. Web

Self-Service is a secure area of the REC Web site that delivers

current account information, electronic copies of past bills, and

the ability to update some of your contact information.

Access Your Account Online

• The Account Summary page provides

current account information.

• The Billing History page gives you

access to your last 13 REC bills.

• The Manage Accounts page allows

you to add multiple accounts to

your Web Self-Service “view”.

• The My Profile page offers members

a way to manage their personal

contact information.

Registration for Web Self-Service is a simple, three-step

process that only takes a few minutes to complete. Use the

Web Self-Service Log In link at the top of the page of our

Web site to access the registration page.

Once you’ve registered you’ll have access to these features:

Rounding Up Pennies Makes A Lot of Cents!

I n 2008 Operation Round Up® (ORU) collected over

$7,000 from approximately 1,500 REC members who

volunteered to round up their electric bill. Currently

over 1,700 members are enrolled in the program, which

will allow ORU to collect even more money in 2009 to

benefit local agencies and organizations throughout our

service territory.

Imagine the impact ORU could make on the

communities we serve if more members rounded their

electric bills up to the next whole dollar. The amount

collected could allow ORU to help even more individuals

and organizations in need.

The money raised through ORU has the potential

to make an overwhelming difference. People in the

community need your help. Please enroll today to

support ORU by calling 800-552-3904. •

Operation Round Up ®

”Being able to pass these

reduced costs onto our members

in the form of a lower electric

bill for the last two months is

an exciting opportunity for us.”

– Kent D. Farmer, REC president & CEO

i pay $5.80 less!

Visit our Web site at to begin

enjoying the benefits of online access.

$1.9 Million Returned

to Rappahannock Electric

Cooperative Members

Nearly 85,000 member-owners of REC will receive credits on

their November electric statements totaling $1.9 million. The

credits represent a return on the investment each member makes

in the not-for-profit Cooperative.

“One of the benefits of being served by a not-for-profit cooperative

is that members share in our success,” said Kent D. Farmer, REC’s

president and CEO. “The people who use our electric service also own

the Cooperative, and Capital Credits provide tangible evidence of

that ownership.”

When the Cooperative’s annual revenues exceed its expenses the

extra revenue is assigned back to each member based on their patronage

during that year. The assignments are referred to as Capital Credits.

When financial conditions allow, as they did this year, a portion of

those Capital Credits are returned to the members. This year’s returns

are based on 2008 operating revenues, and only those who were

members in 2008, or earlier, are eligible for credits. Members still

served by REC will receive credits on their bills. A check is issued

to individuals who are no longer served by REC if the amount being

returned is greater than $25.

According to Farmer, the ability to return margins to REC

members in the form of Capital Credits reflects the Cooperative’s

strong financial stability and commitment to providing electric service

at the lowest possible cost. Over the past 25 years REC has returned

over $65 million. The credits are a welcomed element as consumers

approach the holiday season. •

$1.9 million

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