BARC Announces Power Generation Supplier Increase for Energy Rates

Date: April 25, 2022 For Immediate Release

Contact: Tish Blackwell, 800-846-2272 (tblackwell@barcelectric.com)

Millboro – Effective May 1, 2022, BARC Electric Cooperative’s (BARC) power generation supplier, Old Dominion Electric Cooperative (ODEC) will increase its costs to all its 11 cooperative members by $2.32 per MWh, or 0.00232 cents per kWh. ODEC’s rate increase to their cooperative members is a direct result of higher natural gas prices. ODEC (the power generation cooperative that BARC owns, along with 10 other cooperatives in DE, MD, and VA) has instituted a rate increase to cover the higher generation costs resulting primarily from those natural gas price increases.

Higher costs are visible across multiple market sectors and the energy sector is no exception. ODEC’s decision to raise costs to its members is a result of volatile and increased costs in natural gas prices impacted by high winter demand for natural gas, market volatility creating significant cost increases over a short period of time, Russia’s war against Ukraine and other global economic factors exacerbating price increases and volatility.

This increase will cost a household using 1,000 kWh of electricity per month approximately $1.66 beginning with May 2022 incurred charges for electric service. BARC realizes that increased costs for goods and services are impacting everyone, and the cooperative continually works to minimize increases as much as possible.

As everyone is facing higher costs with gasoline, food and utilities, BARC, and its power supplier, both non-profit organizations, are faced with the same challenges while striving to provide reliable and affordable power to electric members. BARC will continue working with ODEC and its board of directors to manage fuel market issues as we all work through this period of energy inflation and volatility.