At Todd-Wadena Electric Cooperative (TWEC) our mission is to deliver reliable and affordable electricity to our members. However, with upcoming power cost increases from our wholesale suppliers, Great River Energy (GRE) and Western Area Power Administration (WAPA), the TWEC Board of Directors approved the implementation of a Power Cost Adjustment (PCA) during the November board meeting. The PCA will take effect on January 1, 2025, and will first appear on February billing statements for members with general service, three-phase, and large power accounts.
While TWEC has worked diligently to absorb as much of the increased costs as possible by keeping controllable expenses tight, these unavoidable increases cannot be fully absorbed without compromising our financial stability.
How the PCA Works
The PCA will be calculated based on your monthly kilowatt-hour (kWh) usage, meaning the dollar amount may fluctuate from month to month depending on your energy consumption. There are two components to the PCA:
- Annual Rate Increases from GRE and WAPA: This portion of the PCA ensures that TWEC can cover the annual cost increases from our power suppliers.
- Monthly PCA from GRE: This portion may be either a credit or a charge, depending on GRE’s power purchase expenses and their need to pass on a monthly PCA. This dynamic adjustment reflects fluctuations in the cost of wholesale power on a month-by-month basis.
Why is the PCA Necessary?
The PCA allows TWEC to respond to changes in the cost of power supply without adjusting base rates, ensuring fairness and flexibility. By tying the PCA to actual usage and supplier costs, we can better align the cooperative’s power expenses with revenue while maintaining financial stability for the cooperative.
More Information Coming in January
Members are encouraged to look for additional details about the PCA in the January edition of Pine to Prairie. The newsletter will include further explanations of how the PCA is calculated, examples of what members might expect on their bills. We’ll also address frequently asked questions to ensure you have the information you need to understand this adjustment.
We understand that any additional charge can be a concern, and we are committed to transparency and member education. For more information about the rate increases from GRE and WAPA, please refer to this month’s CEO Column or contact us directly with any questions.
Thank you for your understanding as we navigate these challenges while continuing to uphold our commitment to serving you.
