Each year, Central Electric budgets for operating expenses of the cooperative. Wholesale power costs account for approximately 59 percent of these expenses and significantly impact rates. These costs can be difficult to predict, and rather than doing frequent rate studies, Central Electric and other cooperatives use a wholesale power cost adjustment (WPCA) to stabilize actual costs of wholesale power.
Due to favorable fuel and wholesale power costs during 2022, actual costs have been lower than budgeted costs for the past operating year. That’s why on your December power bill, you will notice a WPCA credit of $.026 per kilowatt-hour (kWh), or $26.00 per 1,000 kWh used. This is just one of the many benefits of being a member-owner of an electric cooperative like Central Electric. YOU, the consumer, reap the benefits and share in the financial success of the company rather than outside shareholders. That’s the cooperative difference!