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We are excited to announce that the Revenue Adjustment Factor (RAF), a mechanism used to reduce higher-than-forecasted revenue through bill credits to members, will be included as a line item on December bills for a second consecutive year. The RAF will distribute $6 million in credits to members on December bills.
The RAF, introduced in 2015 and implemented as a per-kilowatt-hour rate, will be activated temporarily from Dec. 1-31, lowering the amount billed to members. The credit is the result of the cooperative operating in a financially responsible and efficient way, including efficient management of operations and increased member interest in automated bank draft and paperless billing options. Other factors include faster-than-expected growth, weather conditions and more. Because we generated more revenue than planned, we are passing it on to members.
We take great pride in sharing the cooperative’s financial well-being, and the RAF is a flexible and unique mechanism that prevents us from over-collecting from members. It’s another example of the cooperative difference.
Please see the chart above for more details and credit estimates.
Quick facts about the RAF:
- First approved by Board of Directors and implemented in 2015
- PEC distributed $2 million in 2015 via the RAF
- Only a credit – never issued as a rate increase
- Activated temporarily by the Board of Directors as needed
- Used to reduce higher-than-planned revenue
- Helps us serve members in a unique way
- Applicable to all rate classes except Industrial and Power Plant Start Power