RICHMOND — The State Corporation Commission (SCC) has approved new rates for customers of Northern Neck Electric Cooperative. The rate adjustment provides an additional $2 million in annual revenue, an increase of approximately six percent.

This is the first adjustment to the cooperative’s base rates since 1992. Base rates cover all operating costs other than the power the cooperative purchases for delivery to customers across its member-owned distribution system. Purchased power costs are adjusted monthly through the cooperative’s electricity supply service charge.

The Commission accepted an agreement offered by the cooperative and the SCC staff on the overall revenue adjustment. There were differences, however, on how to collect the additional revenue.

The cooperative requested a monthly access charge on residential, small commercial and church service customers of $22.23, up from $8.50. The Commission approved $16.

The Commission said establishing the access charge at $16 “reasonably balances the goals of cost causation and gradualism in rate increases.” The Commission noted that “consumers have control over the volumetric portion of their bill, but not over the fixed portion (which includes the access charge).”

The rates, terms and conditions approved by the Commission are effective for service as of January 1, 2009.

Northern Neck serves nearly 18,000 members in Stafford, King George, Westmoreland, Richmond, Northumberland, and Lancaster counties.

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Case Number PUE-2008-00076