Because we know changes to your bill matter, East Central Electric Cooperative wants to share an update about the Consumer Cost Adjustment (CCA), a long-standing billing mechanism designed to cover expenses when revenue doesn’t.
What is the Consumer Cost Adjustment?
The CCA, adopted by the cooperative’s board of directors in 2006, helps ensure the co-op collects only the revenue necessary to provide safe, reliable electric service in the face of unpredictable weather patterns. Weather is the single largest factor affecting electric use among members, which can significantly impact the cooperative’s monthly revenue.
“When weather is unusually mild or when overall energy use is lower than forecasted, the cooperative may take in less revenue than required to maintain and operate the system,” CEO Dwayne Elam said. “The CCA helps balance those fluctuations so we can continue providing reliable service without changing base rates multiple times a year.”
Because the cooperative does not operate for profit, the CCA serves as a simple, transparent tool to keep revenue aligned with the actual cost of providing electric service. When overall energy use is lower than expected, the CCA may increase slightly to help cover necessary operating expenses. When usage returns to normal levels, the adjustment is reduced accordingly.
On the electric bill, it looks like this:
(Kilowatt-hour usage × CCA rate set by basic financial requirements to cover expenses) = Consumer Cost Adjustment
The number after the “at” is determined by the short-term financial needs of keeping the lights on and fluctuates monthly.
What is the impact on my bill?
For the month of November, the CCA increased from 1.4 cents per kilowatt-hour in October to 4.08 cents per kilowatt-hour. This monthly update took place on Monday, November 17.
For all members, this line item on the bill will be larger than normal. The last time that the CCA calculation was this high was in December of 2020.
The image below provides an example of what this difference looks like for the average household.
“Our goal is always to keep rates stable and predictable for our members,” Elam said. “Providing safe, reliable, and affordable electric service amid rising costs and variable revenues is a balancing act, and a responsibility that we do not take lightly.”
What if I can’t afford it?
East Central Electric Cooperative exists to serve, and we never want sudden fluctuations to create worry or hardship for any member. To support you during this transition, we are working with members to set up a custom payment plan and walk through options that can soften the impact.
If this unexpected increase puts a strain on your budget, please call us at 918-756-0833 between 8 a.m. and 4:30 p.m. each weekday. Our member service representatives are waiting to lend a hand. (Our office will be closed November 20, 27, 28 and December 10, 24, and 25.)