PRECO Electric Rates Go Down – Again!
For the second time in under 5 years, we are reducing base electric rates. Recent studies performed on PRECO’s costs and revenues show that an overall rate decrease of 4.1% is warranted. In addition, the Cost of Power Adjustment is being lowered to pass even more savings on to our members. New rates go into effect on April 1, 2021.
Residential Rate Change Summary
Type of Charge March 2021 April 2021
First 1,000 kWh $ 0. 11456 per kWh $ 0.11100 per kWh
Over 1,000 kWh $ 0. 13456 per kWh $ 0.12100 per kWh
Cost of Power Adjustment $ (0.02150) per kWh $ (0.02300) per kWh
Facilities Use Charge $26.50 per month $28.00 per month
Power Cost Adjustment – Did you know?
Over the past 2 years, PRECO has reduced your energy charges through the Cost of Power Adjustment (CPA) 6 times, for a total reduction of $7.50 for each 1,000 kWh purchased.
PRECO purchases all your power needs from Seminole Electric Cooperative through a wholesale power contract.
PRECO does not mark up the price of power it purchases from Seminole. The power you consume is sold to you at PRECO’s cost.
Approximately 60% of the total charge on your bill comes from the purchase of wholesale power.
The kWh charge in our base rates includes an estimate of $0.090000 per kWh for wholesale power cost.
PRECO uses the CPA to “true up” the estimated $0.090000 per kWh sold to the actual price of kWh sold. Currently, the CPA is a credit of $23.00 per 1,000 kWh.